Central banking authorities around the world are jumping onto the bailout-zero-interest-never-mind-the-savers bandwagon. After the Fed and the Bank of England began musing about "quantitative easing", euphemism for "printing money", now pressure seems to mount on the ECB to follow suit.
I watched the loonie go under, standing at 1.67 to the Euro as I write. I also watched the greenback soar to 1.25 Canadian in the past months, making flying into the US impossible on my budget. To top it off, the British pound, long regarded as the most expensive and safest currency of a developed country, is down to almost parity with the Euro, trading at 1.46 US/GBP against 1.36 US/Euro. Factor in the commissions and the usual tweaking and Bang! it's one-for-one.
Does anybody know a country whose currency
1) Is not dependent on a commodity price
2) is regulated by a non-interventionist central bank
3) won't be used by a liberal government to bail out failed industries?
I have a fair Euro savings account, and I won't watch its value wiped out by a printing press.
Thursday, 2 April 2009
Quantitative screwing
Posted by
Luca Manfredi
at
10:27
Labels: central banks, economic crisis
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