What in the world does this mean?
A spokesman for the ECB said the Irish Central Bank is itself creating the money it is lending to banks, not borrowing cash from the ECB to fund the payments. The ECB spokesman said the Irish Central Bank can create its own funds if it deems it appropriate, as long as the ECB is notified.
News that money is being created in Ireland will feed fears already voiced this week by ECB president Jean-Claude Trichetthat inflation is a potential concern for the eurozone.
I really don’t know how to interpret this blurb from an Irish newspaper. It sounds like the Irish Central Bank is creating Euros. Is it possible?
If so, what might happen in Portugal, Spain, Greece, etc. etc.? Has the EU subcontracted out their counterfeiting?