At the ECB governing board meeting next week, everybody expects the announced rate cut, although the sky over inflation is still cloudy.
Why is the ECB doing that? According to financial analyst Mauro Bottarelli, it does it in order to guarantee financial flows towards the US, and to prevent a Wall Street collapse before the elections. Bottarelli sees too many conspiracies sometimes, but the circumstantial evidence makes sense:
“The U.S. 10-year is back above 4.60 percent. In a country with a 6% deficit, high (debt) ratio to GDP despite growth rate wizardry, and 1 trillion (dollars) new federal debt every 100 days. And Nvidia is holding up Wall Street literally by itself. What do you say, the U.S. that is issuing debt with a shovel, after the Japanese sacrifice, also needs the European one, in order to get to November without another 2008?”
