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By Julie E. Czerneda, Rob St. Martin

Nineteen tales of fable and magic during the centuries

Here are nineteen unique tales of delusion, magic, and the creatures of fable, as noticeable via diversified historic eras— from the Age of Antiquity to the Age of Sails, the Colonial Age, the Age of Pioneers, the Pre-Modern Age, and the Age to come...

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With no natural dollar deposit base to match, European banks became critically dependent on funding themselves in overnight and very short-maturity dollar repo markets. There is no evidence that ECB officials during this period (mid-2000s) were aware or pointing to the dangers related to European banks’ high involvement in foreign – and especially US – credit booms. Instead they gave speeches about how in the new age of the euro, European countries had indeed gained a new degree of independence from US economic or financial shock.

There was concern (within Germany) about business investment remaining weak overall due to the re-location of production into cheap labour countries to the East (most of which were soon to come into EU). Inflation as measured in Germany was at the bottom end of the range for euro-area members. German banks were with the benefit of hindsight getting heavily drawn into the warming up global credit markets, but that was not registering on any market or official monitoring device. The third period during which German economic conditions assumed over-proportionate influence on policymaking (with the Bundesbank President, Professor Axel Weber, and the ECB chief economist, Professor Jürgen Stark – himself an ex-Bundesbanker – both very influential) was in the aftermath of the first big credit quake of summer 2007 and continuing into almost all of 2008 (except possibly for the last few weeks of that year).

It seemed then to the Bundesbank (and to the main forecasting institutes) that the German economy was still in a strong growth phase despite the big slowdown elsewhere in the euro-area (and beyond). ) suggested Germany was in a boom driven by exports to Russia, Eastern Europe, the Middle East and China in particular. (Later events and data were to show that the Bundesbankers were remarkably slow in realizing the downturn of German overall business conditions which set in already in spring 2008.

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