That’s the word from BOF Governor Noyer when asked about the rumored French rating cut. That follows a report of Sarkozy calling David Cameron an "obstinate kid" over his behavior at the summit. “A downgrade doesn’t strike me as justified based on economic fundamentals,” Noyer told Le Telegramme, a Brittany-based newspaper. “Or if it is, they should start by downgrading the U.K., which has a bigger deficit, as much debt, more inflation, weaker growth and where bank lending is collapsing.”
That’s a Big Central Banking no-no. One Central Banker doesn’t generally use the word COLLAPSING when discussing the another Central Bank’s economy – especially when the economies are as closely tied as France and the UK’s. To some extent, this is evidence of how tightly ratcheted up tensions are in Euroland as well as how bat-shit crazy everyone and everything is going these days.
Note in the chart above that Spain and Italy are not so much the UK’s problem as they are that of France and Germany and England does have Ireland to worry about in much larger proportions so it’s natural that this should shape policy on both sides of the Channel. Obviously people who issue Fiat currencies shouldn’t cast dispersions on ANYONE – as you REALLY do not want people questioning the soundness of the entire system where each country simply puts it’s ink on a piece of paper and calls it money and tricks people into trading their stuff for it.
My 11 year-old daughter thinks the whole system makes no sense (her school hasn’t completely extinguished her ability to question authority – yet) and asked me on what basis the Dollar goes up and down and why she gets the same allowance each week regardless of changes in its buying power. Even a child realizes she is being ripped off by this system and the worst thing Central Banks can do is to wake up the population to the fact that the "legal tender" ain’t what it used to be. I pointed out to Madeline that she was on the right track and and told her to listen Jackson Brown’s "The Pretender" – she caught it the first time around – we’re still waiting for the rest of the happy idiots to wake up…
Pretense is what Fiat Currencies are all about! There’s no gold…