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Central Banks are part of the problem not the solution
Date 06/07/2010 17:26  Author webmaster  Hits 2401  Language Global
• The failure of the common currency has long been predicted, as it was flawed from the very start, UKIP MEP Godfrey Bloom told Commission president Barroso today in Strasbourg.
'It was even flawed with your own rule book, and what actually happened when you introduced the euro is that you actually tore up your own rule book - you threw it away!'
Speaking during the debate on "Economic governance in the EU and the Euro zone, and surveillance of national budgets", Mr Bloom said that central banks are getting into the same trouble that commercial banks get themselves into when they buy junk debt that is then repackaged into triple A rating before redistribution. 

"What are our central banks doing now?" he asked.
"The very same thing. They're buying in the secondary market - they're buying junk bonds, repackaging it as Triple A and this is just how we got in this pickle to start with.
"If you want to get out of this mess, you want to get rid of the political establishment's support for commercial banks and get rid of central banks, which are actually part of the problem, not the solution."