Wednesday, April 11, 2012
CNBC's Brian Sullivan: "Does the ECB have enough money?"
Just listening to CNBC anchor Brian Sullivan questioning whether or not the ECB "has enough money" to help Spain. Still a shocking degree of ignorance from the media when it comes to these very simple concepts. The ECB, as the currency issuer of the Eurozone, can never run out of euros. The other day I heard Bob Froehlich, Chief Investment Strategist at The Hartford, say that the Fed "doesn't have any money to conduct QE3." It's really bad journalism that this continues to go on. It just perpetuates all the ignorance and fallacies.
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CNBC - The Center for Neoclassical Bogus Concepts
That's the best I could come up with. I welcome suggestions.
Neoliberal Bullshit Claptrap?
In principle the ECB can't run out of Euros, but they are ultimately limited in being able to print more Euros, by runaway price inflation.
So perhaps we can interpret statements such as "The ECB/Fed doesn't have enough money" to be statements given the fact that the central banks are inflation targeting.
Yes, this is very charitable, perhaps too charitable, and it's probably not what these bobbleheads have in mind when they say such statements, but there is at least some truth to what they are saying.
If they were actually thinking about money in the way you just suggested, Major Freedom, then that would be a huge step forward. Unfortunately they're not. They're just clueless.
You need - need - need a show on bloomberg. Or regular specials. or something.
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