February 8, 2008 (LPAC)--While the Federal Reserve and the Bank of England have been insanely lowering interest rates and flooding the markets with hyperinflationary money, the European Central Bank had resisted such cuts, with ECB head Jean-Claude Trichet repeatedly warning of the risks of inflation. Now, it appears, judging by reports in the European press, that the ECB is being forced by events to join the other central banks to cut rates to try to protect the dead system. In a press conference yesterday, Trichet repeated his usual remarks about inflation, but for the first time also stressed the risks to "growth," which comments were taken as a signal that rate cuts are coming. The same day, the Bank of England announced a further quarter-point cut in interest rates.

This is not to suggest that the ECB has been a staunch defender of financial sanity, as it has not, as it has injected amounts approaching a trillion dollars into the banking system to keep the zombies afloat. ECB loans have been about all keeping the Spanish banking system afloat, taking their junk assets in exchange for cash.