Trichet is the turd in the punchbowl

I started writing about Jean-Claude Trichet very early on in my blogging days, but had been on his case long before even that. The following quote from a post I made on Ironies in June 2003 illustrates the point:

I recently wrote a piece on Jean Claude Trichet and annoyingly could not find my copy of Bernard Connolly’s book ‘The Rotten Heart of Europe’. A reader has very kindly provided the information I sought " Spotting this in Ironies I looked up my copy and there are 29 entries indeed !  These include ‘avoidance of criticism’, ‘paranoia about Anglo-Saxon conspiracies’, ‘scepticism about competence of (Trichet)’, ‘sweetheart deals’  and many more!"

The earlier posting to which I referred above, contained a quote from The Times, which now seems particularly pertinent, for the reason that it has been so completely and utterly wrong:

M Trichet has been acquitted over charges in the Crédit Lyonnais affair but his future tenure in Frankfurt will inevitably carry the taint both of this scandal and the unseemly Franco-German stitch-up which paved the way for this change at the top, halfway through the treaty-prescribed term for an ECB President.

On Ironies and Ironies Too, down the long years since those words were written, the taint has not been forgotten and for a flavour of the various posts returning to the topic on this lamentable character click Ironies or Ironies Too according to your choice. The charges regarding the Executive Life Insurance affair and the bank Drexel, Burnham, Lambert are detailed on my Ironies post of  6th August 2003, to which this link may still perhaps work,(although you may have to scroll back through the month’s posts to arrive at that title "Trichet edges closer to his goal" .

So why has the rest of the world apparently chosen to forget this man’s track record and past. After all, it was the very same man at the heart of the collapse of the Exchange Rate Mechanism as detailed by Bernard Connolly in "The Rotten Heart of Europe"  ISBN number: 0-571-17521-XISBN first published in Britain in 1995?

As this week rolls along it is already becoming clear that huge liabilities lying within the ECB will soon have to begin to be returned to the Central Banks of the Euro Group former-countries. Are their Central Bankers as Bonkers as their political leaders, who have left Jean-Claude Trichet in charge of the ECB for the past eight years, given all the obvious warning signs. The national political leaders in 2003 were certainly culpable, but so have been many others in between, but where will the blame now fall?

We know who must pay, the people all across the EU, potentially even their children and possibly grandchildren thereafter.

Nowadays more inclined to seek a brighter side to things perhaps I should provide this clip I also found from a post on Ironies in November 2003, when the gold price rose above $402 an ounce, and wondered what Europe’s Central Bankers would then do following the collapse of the EU Stability Pact, as follows:

Re-launching National Currencies will be a competitive business and each will require a solid underpinning, which has historically been gold. Much national gold was shipped off to Frankfurt on the Euro’s launch and might eventually be reclaimable. But again it might not, what better insurance policy therefore than printing more Euros which in the long term appear useless and using them to discreetly buy up some gold.

You never know, perhaps Trichet, has been following my advice over the past several years, and in reality those living in the eurozone are now really rich beyond dreams!

 

4 comments for “Trichet is the turd in the punchbowl

  1. June 8, 2011 at 9:56 am

    I know the ECB, Euro parliament and others are different institutions and in different places but I have this recurring (very enjoyable) dream that has hordes of hoi polloi – similar to depictions of the storming of the Bastille – tearing down the monstrous elite construct that is all this Euro tripe.

  2. David Capman
    June 8, 2011 at 11:37 am

    I do own gold – and have bought it and have it stored outside of the EU, although I live in the UK.

    With the degree of the downfall coming, the simple gravity of the catclysm approaching when reality finally hits home, I just can’t see Governments being so scrupulous over honouring the price of gold to refloat their economies. I can see, in the UK and across Europe, Gold owned within the EU by private individuals will be compulsorily sequestered under powers of ‘National Emergency’ or similar. The owners being paid either a minimal compensation amount, or paid off in the previous valueless denominations (as you suggest) or even in Government Bonds (under terms of reference which will be entirely opaque.)

    I’ve been saying elsewhere, under other names, that I find it unusual that we haven’t had a Public Enquiry over this Eurozone disaster. We had one over the Scottish Parliament overspend. (Half a billion quid or so…), the Government ..’are not ruling out’… a public enquiry into the recent news over care home abuse.

    The Eurozone crisis isn’t just an unfortunate consequence of unforseen circumstances. It wasn’t even just theorised – it was predicted by senior figures of forty and thirty years ago. These figures were advising Prime Ministers of decades ago of the consequences of failure to put in place the necessary structures and disciplines as a pre-requisite to Currency stability and reliability. These voices were ignored. A British Government of twenty years ago could have, but failed, to block the inception of a monetary system which was institutionally flawed, but had the power to damage the economy of the UK directly.

    Of all the elephants in the room, this is the largest from my viewpoint. A public enquiry over the overspend of half a billion of Taxpayers money in Scotland, but none on the horizon for a debt of close to £1 Trillion, and obligations to bail out the currency of which we aren’t even a member? Cynical old me would say, some people have got something to hide, and it’s a biggie.

  3. June 8, 2011 at 12:25 pm

    Well put! Thanks for taking the time to comment on my post.

    I am reminded of a book by Gerald Edwards, “The Book of Ebenezer Le Page”, which I occasionally re-read and although fictional, brilliantly brings to life the story of a man from Guernsey, who keeps his gold, when it becomes illegal so to do, and thereafetr agonises long and often over how it is to be bequeathed.

    The insights into small island life, are welcome distractions from the day to day of our modern life.

    The ongoing lack of concern over what is happening in the real world and the true scandals, witness Prime-Minister’s Questions, in progress as I write, truly boggles the mind!

  4. June 10, 2011 at 8:24 am

    A very, very grubby little man but he is in among friends. Why have we not been concentrating on him? He’s one of the faceless ones, is he not? One of the grey men.

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