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A citizen letter to the ECB

by Xavier in Paris Fri Dec 23rd, 2011 at 07:52:02 AM EST

I've been reading the new with astonishment yersterday, after being deprived of that pleasure for a (long) holiday weekend in Bruxelles.
So it was new for me to learn that the ECB was lending roughly 500MM€ at 1% to banks in order to get them lending this amount at 3% to France, Spain or Italy.

And I though: my savings get a 2% reward at the bank. I don't have a use for them. Me too, I'd like to get rich, so why not write a letter to the BCE, asking to participate to the plan (Could they refuse under free competency rules?) and get rich too. It would even be patriotic...

So I started to write a letter which follow below, and I was wondering, what about if every EU citizen was sending its savings to the ECB and ask for the right to pillage public goods too?

Please, help me to get the letter right, and I'll send it...

Dear Mr Draghi,

I'm writing this letter in English, because, even if french is supposed to be an official language of the Uropean Institutions, it is clear for years that the Union is now of anglosaxon inspiration.

I am very conscious, as a citizen of the European Union, of your efforts as ECB chairman to solve the debt crisis in our continent.
Your efforts are valued, and I was wondering whether I could give you a hand in the processus.
These efforts have lead you to decide last week that the best way to help solve the European crisis was to give the European banks the possibility to borrow from your institution at the very low rate of 1% and lend this money to the troubled states on the continent at a higher rate, provided these banks would deposit some collateral at your institution.

I myself have saved some money and I propose to do the same, in order to reinforce your action.  I understand that banks may lend 10 times the amount of their assets. I also understand that Member states governmental bonds constitute such assets. I therefore propose to you to deposit my savings at the European Central Bank and lend again the money the ECB would lend me to member states, too. This would allow me to provide some hundreds of thousands euro to member states, and maybe more, as I understand that I may recycle government bonds as collateral to get new fresh money from your institution.

This would be a proof you could communicate about that all right minded European citizens have the same access to the European Institutions, without discrimination on nationality or wealth, and that all people could get insanely rich easily without any risks by lending public money to public institutions.

This would be a right step in the path of the Lisbon Process, a true proof that liberalization and non rigged competency are embraced by the European Institution your represent, and not, as some populists might say,  used to deprive the average citizen of its rights while transferring riches to the wealthy.

While waiting impatiently to your answer to my proposal, I wish you a merry Christmas,

Salut Xavier

J'aimerais la lire en français aussi...

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Dec 23rd, 2011 at 08:36:14 AM EST
Dear Xavier wherever you are,

I write in the english too, but i won't wish you a merry christmas. we have never supported the idea that commonfolk (such as yourself?) should be allowed to celebrate sgraggly dissidents (what we joke about during our pretty decent lunches) turning over tables in the temples where we operate.

Your sentiments are perhaps noble, but like all inflationary ideas fall by the wayside of following the star of the three kings of banking, and their many subordinates. The path we have chosen allows our clients the ability to grant you what you desire, if they feel like it. Which of course is the reason we support the current system with our actions. So that they can help you pay your proper tithe. But we simply can't (cannot) give you the same terms, because.

Being a citizen, there are likely many things you don't understand, which is of course why we understand for you. You should be thankful that we have given your local hometown branch of our sect the ability to let you provide proper risk management. Thus, by accepting your financial fate, you are indeed increasing your ability to accept your financial fate.

If I may, as you seem to be so astute, I must fault some if not all of your reasoning. If we gave all the right to profit from government lending, who would there be left to lend to? Do you actually believe government should be financed by the people they control?

Perhaps this is the flaw in your logic. Your logic doesn't compensate for the algorithms on which we base our neutral policies. We support systemic good, and give those parts of the systems which our analysis has shown to be good, systemic support. If everyone and their mother were allowed to do the same, what form of chaos would you then subscribe to?

To put it in more mathematical terms, the financial system is not built on the green cheese of full employment. To put it in political terms, my bailout is better than your bailout.

These are the realities with which you will have to grow accustomed. However, of course, notwithstanding, you will also notice your bank account has been frozen. This is not due, of course, notwithstanding, to your various ideological suggestions, in fact, we, are always open, to the various what goes for suggestions to our policies discussions. But we did just want you to check your suggestions at the gate.

We do not become involved in the daily workings of the system we create, so we of course, notwithstanding, are not involved in the forthcoming foreclosure on the €/m2 place where you live. We would only suggest that you study a bit more before you try to solve a complex problem of such complexity with suggestions such as that which you have proposed.

I casually offer this suggestion, banking citizen to banking sitizen, that you pay more attention to the uniformed officers knocking on your door, and less to the men in very important suits who fight for your welfare.

I am of the hope that you are of the kind who has the ability to catch certain drifts.

Of course, notwithstanding, we remain your humble servants.


Your Mario

PS. Some of my minions have expressed the considered opinion that your argumentative conclusions, false though they are, have shown a considered ability for analyzation of complex stuff. Please send us your CV, we believe we can offer you a substantial package, including exemptions from the fire down below.

(This is only a first draft. we are not responsible for any repercussions which may ensue from any of the repercussions. We do, however, notwithstanding, need help in refining this letter.)

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin

by Crazy Horse on Fri Dec 23rd, 2011 at 04:13:01 PM EST
The problem is that someone has to pay the borrowed money Xavier.

"A politician will do anything to keep his job - even become a patriot"

by Olivera Despina on Mon Dec 26th, 2011 at 11:27:16 PM EST
That's nothing 7% inflation won't fix.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Dec 27th, 2011 at 04:07:27 AM EST
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