Saturday, 7 May 2011

Jean-Claude Juncker, Luxembourg PM and Head Euro-Zone Finance Minister says "When it becomes serious, you have to lie"

Earlier today in EU Seeks Collateral for More Greek Aid; Trichet Reiterates Restructuring "Not on the Agenda", Market Reiterates "Trichet is a Pompous Fool" I Called ECB President Jean-Claude Trichet and Luxembourg Prime Minister Jean-Claude Junker, a pair of arrogant, pompous fools.

I failed to mention that Jean-Claude Junker readily admits something we should all know anyway, that he is a blatant liar.

Please consider Market jitters bring difficult choice between truth and lies for politicians, spokespeople
On March 29, when speculation swirled that Portugal needed a bailout, Prime Minister Jose Socrates denied � again � that that would happen despite clearly unsustainable market pressures.

"I'm sick of saying we won't" be requesting help, he told journalists.

Just eight days later, in a chastened appearance on national television, Socrates did just that.

For Jean-Claude Juncker, the prime minister of Luxembourg, the threat of immediate market turbulence means the usual norms of transparency don't apply.

"When it becomes serious, you have to lie," Juncker, who as the chairman of the regular meetings of eurozone finance ministers is one of the currency union's key spokesmen, said in recent remarks.
When you readily admit you are a liar, why should anyone ever believe you?

Note that "serious" is subject to a huge variance interpretation. Also note that any time someone does think "things are serious", the only reasonable course of action is to assume an admitted liar is indeed lying.

If the market presumes you are lying, what good does it do to lie? Indeed, the market might over-react not understanding the seriousness of the lie, or even if it is a lie.

Now, given that Junker is a liar, precisely why should anyone possibly believe him when he says there was no discussion of Greece leaving the Euro? In fact, given that things are clearly "serious", why should we believe a single thing he says.

I had missed this admission by Junker and I thank Ilargi at Automatic Earth for pointing it out in Trojan Lies.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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