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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (22860)	9/28/2000 9:21:53 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 436258

it did indeed. the ECB's chief economist Otmar Issing sometimes strikes me as a grey eminence there...his pronouncements are rare, but always have an air of importance about them...and then there's the new BuBa head Welteke. check what he had to say when he took over from Tietmayer: By John Schmid International Herald Tribune -------------------------------------------------------------------------------- FRANKFURT - In a ceremonial changing of the guard at the Bundesbank on Monday, the incoming president Ernst Welteke took up where his predecessor left off and pledged vigilance on the euro's value. ''The exchange rate of the euro is not simply an indicator like any other,'' Mr. Welteke said at a stately farewell ceremony for Hans Tietmeyer, the retiring central bank chief. ''It is a mirror image of monetary, economic and political trends - or mistakes - in Europe,'' Mr. Welteke said. The euro's disappointing plunge against the dollar since its January inauguration has caused greater alarm in Germany than elsewhere in the 11-nation euro bloc. For many Germans, keenly aware that hyperinflation paved the way for past political tyranny, a strong and inflation-free currency remains an article of faith. Although Mr. Welteke inherits a low-inflation economy, he cannot escape the reality that currency devaluations remain deeply unpopular among many Germans. Plunging exchange rates run contrary to the Bundesbank's own hard-money philosophy. ''We have to care deeply about the international regard for our new currency, not least because of its designated role as the world's second-biggest reserve currency,'' Mr. Welteke told dignitaries who came from around Europe to mark Mr. Tietmeyer's departure from public life. In a reminder that the Bundesbank remains one of the nation's mightiest and most venerated institutions, Chancellor Gerhard Schroeder and his top ministers flew to Frankfurt for the ceremony and pledged to support both Mr. Welteke and Europe's common currency. After Germans grudgingly gave up their Deutsche marks, on the promise that the euro would be as strong as the mark, Mr. Schroeder reassured them that the Bundesbank remains as tough as ever. ''Nothing, and that means absolutely nothing, will change on the stability orientation of the Bundesbank,'' the chancellor said. Mr. Schroeder predicted the euro would benefit from his unpopular economic plan, which tightens the budget for years to come at the expense of social programs and freezes pension payments. ''I will say it very clearly: there is no alternative to this course,'' Mr. Schroeder said of his austerity program, which has come under daily attack from his own party even before it goes to Parliament in coming weeks. ''It is the best guarantee for the stability and further success of the European currency.'' note: at the time, the Euro was still trading slightly above par. guess whose idea it was to say 'the buck stops here' and intervene...