From http://www.bloomberg.com/news/2011-04-08/soros-says-ecb-rate-increase-quite-inappropriate-during-sovereign-crisis.html: “It is not appropriate in current circumstances when you have a number of countries that are suffering from too much debt and high interest rates,” Soros said[.]"
How can anyone take Soros seriously?
Soros is concerned the PIIGS could become tempted to actually default and we wouldn’t want him and his fellow Euro and bondholders to “take a haircut” now, would we?
Yes, I agree with you.
What I was referring to was the ECB raised the interest rate to 1.75%, an interest which Soros calls high.
Ah, right. I wonder what he considers as a “low” interest rate? Perhaps the one quarter of one percent the Fed gave to the Arab Banking Corporation as a “sweetheart loan” agreement? 
Soros has enough money not to care about what he says. He knows very well France won’t allow a single EMU country to default even partially, whatever the cost. He knows very well a 1,25% interest rate is a classic case of too little too late. So what’s up with good ol’ George Soros? It’s very simple: the world is nervously looking at the FED and wondering how long this inflationary madness will go on. Make no mistake: all central banks are inflationary in nature but right now there are very serious concerns about price inflation. The People’s Bank of China’s (PBC) seemingly neurotic policies of massive monetary inflation and rising interest rates are dictated by trying to both keep the yuan from appreciating against the dollar and keep consumers prices under control. While the former has been successful, more or less, the latter has failed. CPI is projected to rise by 4,5% this year in China: in reality it will be very close to 10%. Some analysts may joke China can crush any social unrest with extreme prejudice but widespread revolts don’t need to topple the government in Beijing or turn Shanghai into ashes. A week long strike by coal miners or immigrant workers could wreak immense damage.
The ECB decision is dictated by similar fears. Consumers prices in Europe are literally skyrocketing, due to inflationary pressures and increased taxation by desperate governments. Even the much watered down CPI index is over 2% already. In reality we are around 5%. This isn’t 2006. The euro has fewer defenders than ever and somebody is finally starting to question the ECB’s mandate “keep price stability at all costs”. This very modest increases is the result of a very long armwrestling match between France and Germany. The French were forced to make concessions when they realized the sad predictament Angela Merkel is in now. Her government has been losing one election after another and there are serious risks a much less amenable government could arise in Berlin. See this decision as throwing the dog a bone. And a quite small one at that.
Kakugo, as always, your insight illuminates these issues as a quasar does to distant space. Thanks!
I see George is as loved everywhere as he is in my own country.