Not that this is anything new, but what’s frustrating is that no one is being held accountable for anything.

The superior officers of urinating marines, Fed governors, Wall Street financiers: you name ‘em and they’re getting a free pass.

Gorilla says: “When there’s no punishment for being craven, craven becomes the new normal!”

“The ECB will be the lender of last resort for the Eurozone and will defend without limit a floor price for all sovereign debt”.

Gorilla says: “It really is that easy!”

As Krugman points out, and he’s only a Nobel Laureate, the ECB needs to raise the inflation target substantially, cut interest rates, and get big-time stimulus going. In fact, America should be doing the same, but we too suffer at the hands of a profoundly stupid leadership.

So what does a French ECB board member say to this: “These wild expectations only show that some people have lost the north”.

Gorilla says: “And the east, south, and west, too, if you keep this nonsense up!”

But there’s little word on what’s needed from any of the major players.

Greece should default on its massive debts and leave the euro.

The ECB should be buying up PIIGS debt on a much greater scale, raising the inflation target to 4-5%, and creating Eurobonds.

Eurozone banks need to be recapitalized, there’s a danger they won’t be able to borrow money in the markets to keep going.

And there needs to be large scale, job creating stimulus in the US and Eurozone.

So far, these have all been mooted, but unless something’s done very soon and very seriously the markets will collapse a la 2008.

Gorilla says: “Action this day!”

The purpose is to provide liquidity because Eurozone banks are not able to get financing from the US market.

Everyone’s temporarily happy, but the real problem remains unaddressed: these banks are woefully undercapitalized and heavily exposed to PIIGS debt, the latter of which will only grow larger if the austerity idiocy continues.

Gorilla says: “They’ve bought a little time, but contagion will be here long before Christmas!”

But the march to contraction continues…

It’s difficult to understand how the developed world could be saddle with such moronic leaders. Cutting deficits means cutting demand, at a time when demand is the problem. Raising interest rates to combat non-existent inflation is the height of stupidity.

Gorilla says:”Same old Eurozone, waiting for leaders and fairies that never arrive!”

Of course, they’ll need to buy upwards of $2 trillion to solve the problem.

And they’ll need to cut interest rates.

And they’ll need to announce a much higher inflation target.

And they still may need a new currency regime.

Gorilla says: “Time to get serious!”

The problem that no one wants to mention is that a default will likely cause a banking crisis throughout the Eurozone. But a default is realisitically the only option open if Greece wants to avoid self-destruction.

This is because so-called leaders like Chancellor Merkel, M. Trichet and President Sarkozy have essentially lied to their publics about what’s going on: Northern European banks and the ECB are on the hook for what looks like a couple of trillion dollars in bad loans to Greece and other peripheral Eurozone countries.

With another round of extend and pretend, coupled with savage budget austerity that guarantees no economic recovery at all for another decade or more, these liars think they can keep the Eurozone going.

Gorilla says: “Good luck with that!”

With higher unemployment than at any time in the past 70 years, these dolts are worried about 2% inflation!!!

What they should be doing is welcoming 3-5% inflation, but what they’ll do instead is raise interest rates, choke off what little recovery has been achieved, and consign the European periphery to a decade or more of grinding unemployment and deflation.

Gorilla says: “Teutonic deafness as usual!!!”

And that’s the reason why Angela Merkel insists on phony solidarity through grinding, deflationary austerity: the German banks alone are on the hook for nearly a trillion dollars!!!

Gorilla says: “Not to mention that it doesn’t count exposure to Italy, the last little PIIG going whee whee whee all the way home!!!”