The Euro is a credible currency

Quantitative Easing (which used to be called deficit monetization) is justified – in this clip – by ECB president Jean Claude Trichet. Monetary policy works…. eventually, and when it does it tends to result in high levels of inflation.

Some people said the Euro wouldn’t last a decade, for our part, we hope that they are proven to be wrong, the will of society is a very powerful incentive and can be the difference between what should happen in theory and what actually occurs, for that reason I think the Euro will pull through but there will need to be some serious changes made in the way that the Eurozone manages itself.

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We need to clear our bonds, ensure there are retail offerings.

Ireland has been downgraded by Standard and Poors, we are on a ratings watch with Fitch and Moody’s as well. The last bond issued by the NTMA was not subscribed as widely by the international financial community as they were previously and the Irish stepped up and bought up 55% of the bond, we saved the day ourselves. Now we are at a crossroads, we need to raise money, it will be more expensive given our national outlook and at the same time investors are shying away from our sovereign debt, equally we can’t cut back spending enough to bridge the gap and impressing the international investor market with taxation will hurt our national economy.

There is enough money in this country to clear all of the bonds required, and it is held in ready cash format. …

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Whats the fuss about the U.S. Dollar?

The federal reserve is expected to cut rates next week in an effort to alleviate a credit market in crisis. In the meantime there are other developments which may be coming to the rescue, last week Abu Dhabi Investment Authority bought a $7.5 billion stake in Citigroup helping Americas largest bank, who incidentally have massive exposure to those nasty sub-prime loans that are at the root of the present credit crunch. Perhaps Abu Dhabi Investment Authority see an opportunity to pick up assets at a bargain from amongst the wreakage? The other surprise is that China Investment Corporation have expressed a desire to invest in stocks ‘rocked by sub-prime defaults’. The chairman of China Investment Corporation said that the $200 billion fund he directs will be a ‘stabilizing force in the international capital markets’. Perhaps they are seeking credibility in the business world.

Why would it be any other way? If the U.S.A. goes down it will seriously hurt China. Why? For a start the fact that for the near future most of the worlds commodities are in $USD it …

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