Trichet sounds like he is going wobbly on ECB collateral rules. If Greece is downgraded another notch by one of the ratings agencies, their debt will no longer be eligible to be used as collateral at the ECB. The ECB also took lots of dodgy asset-backed securities as collateral to give the European banking system a backdoor bailout.
Trichet is confident that the US will start to produce jobs “from now on”. He calls the US productivity jump “incredible”.
More flexibility would be appropriate for China’s currency, he says, saying Europe and the US have the exact same position on the matter.
Careful not to politicize the yuan, JC…
