ECB is burying its head in the sand
“The ECB is burying its head in the sand in the latest pledges to support the euro. Instead, it should be contemplating the orderly end of the euro as a single currency across the eurozone and – where necessary – an orderly default on EU government debt.
“The head of the ECB has said that he will do ‘whatever it takes’ within the ECB’s mandate to preserve the euro and that high yields on some government bonds were ‘unacceptable’. The ECB appears to want to effectively underwrite the government debt of highly indebted nations by printing money. This policy can only succeed in its own terms if the action is substantial enough to create enormous inflation in the indebted countries. If this happens, the euro as a sound, non-inflationary currency is dead and bond yields throughout the eurozone will be on the rise again.”
Notes to editors:
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