FROM YESTERDAY I GO TO THE BANKS, BUT WITHOUT SHOES!

It is curious as the events they are sometimes chained like links of a chain, and like we are speaking of banks and finances, never rather that of chain, I have not commented the sad representation offered yesterday for the representative of the CUP in the Parlament Catalan, when before the presence of the Mr. Rodrigo Rato, maximum former responsible for Bankia, showed his shoe and he made him a panegyric of what wanted to mean this act in the Islamic countries as form of demonstrating the baseness of which suffers it. With the shoe in the hand did tell him, you Have fear? What Rodrigo Rato replies - to you? -No - clarify him - fear to be left without anything as the poor to who you have ruined. 

I don't continue with this episode, I believe that whole Spain has him versioned but it serves me as introduction because like he said, I take two days writing of banking, economy, foreign currencies, and of the euro area and there is no way to leave it. I don't know what it is happening so that the clearest economic minds in the world are devoted to complicate the things instead of simplifying them, to fix the economy of the euro area. This way today, the European Central Bank (BCE) we are surprised with the threat that it doesn't exclude none of the tools at your disposal, including the possibility to fix a negative rate to the deposits of the banking in the entity, or even, the purchase of active, as it has assured in an interview with 'The Wall Street Journal' the economist boss of the issuing institute, Peter Praet. 

"If our command is in danger we will adopt all the measures that we should to complete it. That is a very clear" sign, the Belgian banker of German origin points out in an interview with the newspaper of reference of Wall Street. This way, the executive of the BCE doesn't discard the controversial possibility that the institution can go aboard in a purchase program of active of the banking with the purpose of reducing the costs of financing of the private sector. Astonishing, the question that quickly assaults me it is of what or of who is in danger the BCE? I suppose that it will be in danger of losing their wages by reason of that the euro and the euro area die from "success." 

The thing certainly doesn't go for these courses, the fear is in that the deflation settles in more than half of the countries partners of the euro area, because it is evident that the national economies go all back instead of advancing toward a certain and sure recovery. Peter Praet insists in its threats the capacity of the balance of the central bank it can "Also be used, this includes direct purchases of active to banks that any central bank can make", if it considers necessary to add additional stimuli at this time, when the risks for the inflation are balanced in the group of the euro zone. 

So far, the BCE has resisted the possibility to throw a purchase program of active similar to the one approved by the central banks of Japan and USA since faces a strong opposition in Germany, the command of the BCE prohibit to the entity to finance the governments, although the economist boss of the bank considers that these legal limits don't exclude to intervene directly in the markets." 

I interpret that the BCE is concerned because although it goes down the price from the money to 0.25%, this doesn't arrive at the private market and stay as another purely financial element, in hands of the banks, the financial markets, and of debt and don't serve as anything the face measure to the problem of the economic stagflation and of consumption that is reflected with the drop current inflation, several of the countries more affected by the crisis they already register rates of inflation zero or even negative. 

It is evident that the commercial banks for this way to call them, they are afraid they don't know very well that surprises wait them, because there are not guidelines neither political, neither economic, neither financial general in the euro area, so to me to understand the BCE he can already to give them the money that if they don't know in what and how to spend it, the only thing that they will make will be to keep it in their boxes of security or in that of the BCE., and that that at the moment the deposit rate is to zero, what supposes that the banks don't obtain remuneration for the money kept in the 'Box' of the BCE. For that reason the threat of imposing a negative type would imply that the BCE would pass to get paid to the entities that they prefer to preserve its liquidity in the central bank instead of lending it. 

The thing seems logical but it is not this way under the current bewilderment conditions, because who it assures to the private banks that tomorrow is not rotated the head to the BCE and he gives them some temporary measures based on the fear of new falls of the national economies, or for the elevation of the sovereign debts, or for the financing of the wild deficits that they are imposing as if all were Germany, this is it that in fact has captive the credit for companies and matters, in definitive the credit for the recovery of the economies of the euro area. 

The day that the BCE, and the European Commission meets in Brussels and define facts as: an European voucher, an European debt, some processes of adjustment of asymmetric deficits and with the same terms of time to adjust them that the employees for des adjust, when all the countries have the same taxes, the same tax loads, apply the same physicality’s, in definitive when the whole euro area really has the same euro and to the same cost, it won't be necessary to invent or to threaten actions that alone they are good to fill the day with articles in the press salmon, or of fond poor as me that he tries to see that it is happening so that everybody is becoming crazy of it finishes off.