#Christine Lagarde: 'The European #Central_Bank Cannot Go #Bankrupt or Run Out of Money'

7 hours ago

Christine Lagarde: 'The European Central Bank Cannot Go Bankrupt or Run Out of Money'

Christine Lagarde: 'The European Central Bank Cannot Go Bankrupt or Run Out of Money'

In remarks that highlight flaws of the fiat currency system, the European Central Bank (ECB) president, Christine Lagarde, says the institution cannot go bankrupt even if it incurs losses running into trillions. According to Lagarde, normal bankruptcy rules do not apply to the ECB primarily because it is the sole issuer of euro-denominated central bank money. The Eurosystem will always be able to generate additional liquidity as needed.

Bankruptcy Rules Not Applicable to ECB

The ECB leader made her remarks while responding to a question from an Italian member of the European Parliament.