No one cares what Trichet wants. It's all up to Banana Ben, and Banana Ben wants to wreck the dollar.
http://larouchepac.com/node/12088 "October 14, 2009 (LPAC)âA well-placed banking source reported to EIR that there is, once again, an intense debate going on within the regional districts of the Federal Reserve Bank over the decision by Chairman Bernanke to take deliberate measures to sink the dollar. The source said that there are some within the Fed who are unhappy with this policy, as there were assurances given to the Chinese government, among others, that the U.S. would support the dollar. Richard Fisher, the President of the Dallas Federal Reserve, reported back from a May 2009 visit to China that he was repeatedly grilled by Chinese officials over whether the U.S. would support the dollar. Both Fisher, and U.S. Treasury Secretary Geithner, told the Chinese that the U.S. is committed to a strong dollar. Recent actions by the Fed have shown there is no such commitment. In response to this report, Lyndon LaRouche said, "What Bernanke is doing is the worst possible thing you can do. Bernanke is making a liar out of the U.S. government. Government officials promised to defend the dollar, but Bernanke's policy is to sink it. It's time for Bernanke to go. "
Thats funny given that a few of the regional districts VOTED for the QE program late last year. The vote was unanimous, Bernanke being ONE vote out of TEN
Would be funny though to watch a full-blown competition of which monkey can run the presses faster. And Trichet has a lot going for him in that: German engineering, British greed, French 'so-we-dropped-a-nuke-in-your-backyard-who-gives-a-shit' indifference...
What other choice does he have? I can't see any. Raising interest rates is high risk and could make matters worse. He wasted all his ammo back in 2007,2008. What a mess.
Wasn't it Ivanovich who just posted an interesting article in some other thread about how the Chinese are devaluing the USD, and it was actually them who defended 1.4480? After all, if you want to move a currency in one direction you have to talk in the opposite way...
I am going to have to say that Trichet is on the "right" in this video... http://www.youtube.com/watch?v=zqjtz3rEPG0 I invite viewer comment on this? -gastropod