Saturday, October 1, 2016

The ECB is Out of Control - All Checks and Balances Have Failed the System

Prof. Markus C. Kerber, Professor at TU Berlin, and James Turk, Director of the GoldMoney Foundation, talk about the European rescue fund. Prof. Kerber explains that the fund is in violation of the monetary union treaty. He talks about the current expansion and expected future expansions of the fund.

They talk about the rogue behaviour of the ECB. Prof. Kerber explains that the central bank's quantitative and qualitative easing is beyond its authority and against the spirit and letter of the treaties that created it. It has created a discriminatory credit market, is engaging in fiscal policy and creates market instability. He comments on the legal action currently ongoing in Luxembourg to bring the ECB to account and condemn its out of bounds behaviour.

Prof. Kerber explains that the system of checks and balances is broken down when it comes to the ECB and tells of the public outcry in Germany when the Bundesbank tried to sell its gold.

He talks about the very strong discussions over whether to let Greece exit the euro. The position that no country would be allowed to fail set the stage for all the further bailouts.

He comments on the German rejection of the French attitude that the euro is a political project and that price is no object. He talks about the danger of Germany losing its creditworthiness.