Comments on: Explaining the ECB’s latest program http://blogs.reuters.com/felix-salmon/2011/10/07/explaining-the-ecbs-latest-program/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Finster http://blogs.reuters.com/felix-salmon/2011/10/07/explaining-the-ecbs-latest-program/comment-page-1/#comment-31645 Sun, 09 Oct 2011 14:45:13 +0000 http://blogs.reuters.com/felix-salmon/?p=10402#comment-31645 One question which I repeatedly return to:

How does government financing through the fractional reserve banking system on unlimited tender money from the ECB differ from government financing by the ECB itself.

Is Basel II, 0 Risk weighted capital for sovereign debt and the fractional reserve system at the heart of all problems?

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