Battle of the banks looms over ‘throw weights’

As the Euro broke the $1.60 mark, the European Central Bank issued warnings about inflation and said it will look at RAISING interest rates.

Yes, raising, not lowering, as Ben Bernanke, The Worst Fed Head Since Greenspan™, has done. At the least, the ECB will NOT be lowering rates, unlike the Fed, the Bank of England and Bank of Canada.

Ultimately, we’re going to get to see which bank has a better interpretation of today’s global economy, and behind that, to use a Cold War term …

Which bank has a bigger throw weight?

Given that the EU economy officially became larger than the US economy earlier this year, and that dissident OPEC members continue to push for Euro-denominated oil, this is:
A. Going to be a hell of a fight and
B. Probably, if not disastrous, troubling for the US economy.

And, no, I don’t think Bernanke and the Fed will “win” this one. But, in a totally dispassionate sense, it could be fun to watch.