Hence, in  the graph of the Bank of Spain, is pictured Trichet, when in July 8, 2008 rose  rates before everything fell apart.

A great guy, Monsieur Trichet.  Sadly he don’t have any idea about economy. Do you see the “beak” seen in 2008, which raised the rate from 3.75% to 4%? Do you see? Thanks to the loyalty to truth of Statistical Department of  Bank of Spain we can see it. 


Because, if we watch to the ECB … in the second box, you can see what  it published.

The ECB seems not to accept easily  its shameful, hiding in its official page  that the 8 July 2008 the official rate was increased from3.75% to 4%.  Jumping  cleanly over the top event, and hidden to searchers the decision. Here, official web page where the outrage is confirmed.

Hmmmmm, little as in the communist regimes they were costumed, when anyone fell into disgrace, “to clear him of all the official  pictures! (after running it, of course).
A mistake repeated in their publications, I suppose. Can we trust such people? In any case, a confirmation that the decision was a huge mistake.


Trichet´s bluff.

It is quite possible that the jump in interest rate promised by Trichet could be more serious that the ambiguity with he announced the decision. See

In the, an interesting information about the hawks see the upward movement.

I don´t disregard the possibility of a break of euro; A new financial crisis is, in any case, quite sure.

See also

More on interest and prices: the coffin of Europe

Trichet is on the verge of rising interest rate, probably in the regukar meeting of April, up to 1,25%. That will be the “coup de grâce” for Spain (and Europe, BTW). Here I plot % annual increase (or decrease) of CPI;  GDP  deflactor and wage. I suggest you concentrate in wage (red line): the adjustment to the 20% of unemployed has been impressive. After annual increase of more than 5%, wage are now 0,4% below the level of one year ago. But that compared to the increase of 3,3% in CPI, shows the huge contraction of real wage. Falling real wage and employment will trigger the fall of consumption and GDP. More unemployment.

Where can you see the risk of inflation when wages really decrease?  I see one risk only: the risk of crumbling. The euro will be the coffin of Europe (And Trichet the grave-digger).

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