The latest column from Ambrose-Evans Pritchard — The Telegraph’s star finance columnist — is a must read.
The title: You are all wrong, printing money can halt Europe’s crisis.
As you can surmise, he thinks the idea that fiscal discipline can save Europe is nonsense. What’s needed is an ECB that’s willing to print money and backstop the various governments.
What’s really great though is Pritchard’s first sentence…
This will enrage many readers — especially the “Austrian” internet vigilantes — but I have to say it.
You see, Pritchard has a past history with “vigilantes” who hate central bank money printing.
Back on September 5, 2010 he blasted the US Fed for not doing more to fight off deflation, saying a “dangerous defeatism” was taking hold among American elites.
But his readers were furious for his calls for more Fed action.
So all those hillsmen in Idaho, with their Colt 45s and boxes of krugerrands, who sent furious emails to the Telegraph accusing me of defending a hyperinflating establishment cabal were right all along. The Fed is indeed out of control.
So he knows from Austrian internet vigilantes!
But the fact of the matter is that Pritchard has been correct in assessing the problems of the Eurozone far longer than most. Back in May 2010, he was talking about Spain’s deflationary spiral and the fallacies of austerity.
Despite his conservative leanings, he’s grasped for a long time how the hard money/austere German vision was a death sentence for most of the Eurozone. So this time, he’s not worried about incurring the wrath of the gun owners in Idaho. He’s willing to call it like it is: The ECB NEEDS TO PRINT MONEY!
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