{"id":2305,"date":"2011-11-23T17:09:37","date_gmt":"2011-11-23T22:09:37","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=2305"},"modified":"2011-11-23T17:09:37","modified_gmt":"2011-11-23T22:09:37","slug":"germanys-economic-and-political-generals-are-fighting-the-wrong-war-on-line-opinion-24112011","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/23\/germanys-economic-and-political-generals-are-fighting-the-wrong-war-on-line-opinion-24112011\/","title":{"rendered":"Germany&#8217;s economic and political generals are fighting the wrong war &#8211; Saul Eslake"},"content":{"rendered":"<p>The role which the European Central Bank needs to be allowed to play in resolving the European sovereign debt crisis needn&#8217;t amount to sustained financing of government deficits. It is perhaps better conceived of as being akin to central bank intervention in the currency markets.<\/p>\n<p>When, in moments of one-sided speculation, or panic, foreign exchange markets push a currency to what by any reasonable yardstick appears to be extremely over- or under-valued levels, it&#8217;s not unusual for central banks to sell or buy that currency in sufficient volume to push it back in the opposite direction. If the central bank concerned is perceived as &#8216;credible&#8217;, the volume of purchases or sales required to achieve its objective will often be quite small. And if its judgement as to what constitutes &#8216;reasonable&#8217; is correct, it will usually end up making a profit.<\/p>\n<p>via <a href='http:\/\/www.onlineopinion.com.au\/view.asp?article=12927&amp;page=2'>Germany&#8217;s economic and political generals are fighting the wrong war &#8211; On Line Opinion &#8211; 24\/11\/2011<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The role which the European Central Bank needs to be allowed to play in resolving the European sovereign debt crisis needn&#8217;t amount to sustained financing of government deficits. It is perhaps better conceived of as being akin to central bank intervention in the currency markets. When, in moments of one-sided speculation, or panic, foreign exchange &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/23\/germanys-economic-and-political-generals-are-fighting-the-wrong-war-on-line-opinion-24112011\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Germany&#8217;s economic and political generals are fighting the wrong war &#8211; Saul Eslake&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[33],"tags":[244,334,962,1169,1295,2827,2831],"class_list":["post-2305","post","type-post","status-publish","format-standard","hentry","category-uk-europe-countries-regions","tag-asset-purchases","tag-balance-sheet-expansion","tag-debt-crisis","tag-ecb","tag-euro-zone","tag-qe","tag-quantitative-easing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Germany&#039;s economic and political generals are fighting the wrong war - Saul Eslake - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Germany&#039;s economic and political generals are fighting the wrong war - Saul Eslake - the patient investor\" \/>\n<meta property=\"og:description\" content=\"The role which the European Central Bank needs to be allowed to play in resolving the European sovereign debt crisis needn&#8217;t amount to sustained financing of government deficits. It is perhaps better conceived of as being akin to central bank intervention in the currency markets. 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One of the concerns voiced by gold bears is that central banks will start selling their gold reserves if they experience an economic crisis. Central\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1901,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/15\/no-one-was-listening\/","url_meta":{"origin":2305,"position":1},"title":"No one was listening","author":"ColinTwiggs","date":"November 15, 2011","format":false,"excerpt":"\u201cCommon responsibility for the European currency will also engender a common decision-making instance for the European economy. It is unthinkable to have a European central bank but not a common leadership for the European economy. If there is no counterweight to the ECB in European economy policy, then we will\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1765,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/03\/european-central-bank-makes-surprise-rate-cut-world-cbc-news\/","url_meta":{"origin":2305,"position":2},"title":"European Central Bank makes surprise rate cut &#8211; World &#8211; CBC News","author":"ColinTwiggs","date":"November 3, 2011","format":false,"excerpt":"The European Central Bank has cut interest rates by a quarter percentage point under new head Mario Draghi to boost weakening growth in a eurozone struggling with a crisis over too much government debt. The move, which comes earlier than expected by many economists, takes the bank's benchmark rate to\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4726,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/29\/debt-crisis-germany-caves-in-over-bond-buying-bank-aid-after-italy-and-spain-threaten-to-block-everything-telegraph\/","url_meta":{"origin":2305,"position":3},"title":"Debt crisis: Germany caves in over bond buying, bank aid after Italy and Spain threaten to block &#039;everything&#039; &#8211; Telegraph","author":"Colin Twiggs","date":"June 29, 2012","format":false,"excerpt":"Bruno Waterfield: On Thursday night, Italy and Spain plunged an EU summit into disarray by threatening to block \u201ceverything\u201d unless Germany and other eurozone countries backed their demands for help......Under the deal, Spanish banks will be recapitalised directly by allowing a \u20ac100 billion EU bailout to [be] transferred off Spain\u2019s\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":40679,"url":"https:\/\/thepatientinvestor.com\/index.php\/2023\/02\/01\/gold-rises-on-central-bank-purchases\/","url_meta":{"origin":2305,"position":4},"title":"Gold Rises on Central Bank Purchases","author":"Colin Twiggs","date":"February 1, 2023","format":false,"excerpt":"Demand for gold is rising, reaching 1,337 tonnes in the fourth quarter of 2022. The primary reason is an uplift in central bank purchases, exceeding 400 tonnes in each of the last two quarters. Economist Daniel Lacalle attributes the increase to central banks moving to protect their balance sheets from\u2026","rel":"","context":"In &quot;Gold &amp; Precious Metals&quot;","block_context":{"text":"Gold &amp; Precious Metals","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/gold-precious-metals\/"},"img":{"alt_text":"Gold: Central Bank Purchases","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-01-31-gold-cb.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-01-31-gold-cb.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-01-31-gold-cb.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":12223,"url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/08\/22\/chinas-dangerous-currency-manipulation\/","url_meta":{"origin":2305,"position":5},"title":"China&#8217;s dangerous currency manipulation","author":"ColinTwiggs","date":"August 22, 2015","format":false,"excerpt":"I am surprised at John Mauldin's view in his latest newsletter Playing the Chinese Trump Card: ....This whole myth that China has purposely kept their currency undervalued needs to be completely excised from the economic discussion. 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