OPINION: Trichet’s raised eurozone forecast is nothing more than a blatant confidence trick.

The Frankfurt Frenchman attempts to persuade the markets that his flying circus has engines.

The European Central Bank chief Jean-Claude Trichet today revised the Eurozone’s growth outlook upwards from the range with a mid-point of 1 per cent forecast in June. “Annual real GDP growth will range between 1.4 per cent and 1.8 per cent in 2010 and between 0.5 per ent and 2.3 per cent in 2011″ asserted the ECB boss, adding that there had been a “stronger-than-expected rebound in economic growth in the second quarter, as well as better-than-expected developments over the summer months. For 2011, the range has also been revised upwards reflecting mainly carryover effects from the projected stronger growth towards the end of 2010”.

Absolute bollocks. None of this is reflected in real private sector exports from the EU. Further, if Trichet is feeling so bullish, why has the ECB extended its ‘meet any and all bank demands for liquidity’ into 2011?

I’m afraid M.Trichet is another of those bankocrats whose underlying belief in all matters fiscal and financial is that most people are entirely stupid.

Let’s just take a peek, for example, at the amount of exposure to silliness, bad credit scoring, and Clubmed catastrophe the EU’s central bank now has. In 2007 – as the first round of mammories began pointing at the sky – this stood at around €400bn. It’s now over €600bn.

Today’s cynical piece of ‘growth’ fiction follows the farcical eurobank stress ‘tests’ of a few weeks back, and the somewhat unexpectedly large €25bn cost of supporting the Irish banking system – a financial construct still a long, long way from being out of the woods. You have to hand it to J-CT, if nothing else he has chutzpah.

You know, too much more of this deliberate falsification of the truth, and Trichet’s generation might well go the same way as the ancien regime after 1789.