MSM Euro Bias

Showdown Looms for ECB and Germans – The Euro Crisis – WSJ.

This entire article is indicative of the MSM bias that I have encountered in following the crisis. The MSM narrative is that the ECB could save the euro if only the Germans would stop complaining about inflation.

The German argument is actually more complex. The Bundesbank wishes to maintain price stability among all else, and its view is that the way to save the euro is to maintain price stability while the PIIGs reform their economies.

ECB money printing will tend to lower the price of the euro. Foreign finance of PIIGs debt has essentially evaporated. Now try getting outside money to invest in these bonds after adding a healthy dose of currency risk to the equation.


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