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Hyper Mario Draghi Speaks
The Goldman pro-inflation emissary is now in Berlin. We can only hope he is not using a wheelbarrow as a pedestal. Here are his quotes:
- DRAGHI SAYS FALLING PRICES CURRENTLY BIGGER RISK THAN INFLATION
- DRAGHI SAYS EURO-AREA UNEMPLOYMENT IS `DEPLORABLY HIGH'
- DRAGHI SAYS DISRUPTION OF POLICY TRANSMISSION `DEEPLY PROFOUND'
- DRAGHI: BIG RATE DIFFERENCES DUE TO BREAK-UP FEARS UNACCEPTABLE
- DRAGHI: ECB HAD TO CREATE BACKSTOP AGAINST DISASTER SCENARIOS
Disaster scenarios meaning reality being allowed back? Becase there is nothing like petulant central planners when the markets don't do as they command.
Some funny ones:
- DRAGHI SAYS OMT WILL NOT LEAD TO DISGUISED GOVERNMENT FINANCING
Well yes, it will be quite "undisguised"
Then on to acronyms:
- DRAGHI: UMLIMITED NATURE OF OMT SENDS CLEAR SIGNAL TO MARKETS
- DRAGHI SAYS OMT WILL NOT LEAD TO DISGUISED GOVERNMENT FINANCING
- DRAGHI: NO SIGNS OMT ANNOUNCEMENT HAS HURT PRICE EXPECTATIONS
What is this OMT he keeps talking about? Has anyone actually seen it in play?
A bone in there for Germany:
- DRAGHI SAYS RATES DON'T HAVE TO BE IDENTICAL ACROSS EURO AREA
Phew, because Germany trading at the same yield as Greece would be great in the socialist European states of Goldman, but a little impractical apparently.
And the punchline:
- DRAGHI SAYS EURO AREA MOVING IN RIGHT DIRECTION
Yup. Extreme right. Just ask the Greek Neo-Nazis.
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omt = other means of trickery
ordinary monetary terrorism
Other's Money Transferred
Orchestra Manouvres in the Dark
One More Time.
Obligated Monetary Transfer
Oh My Tariffs
omt = other means of trade
He's using bitcoins.
Oye My Tuchass.
you beat me to it .. I was going to say "out my tush"
Outright Monetary Transactions <seriously>
Forget the wheelbarrow.......here's the key to the Mack truck.
The Helicopter, the Helicopter!!
I'm Mr. Draghi, your host. Welcome to Fantasy Island.
short term solution. ruinous in the medium term. Just like when Greenspan inflated a bubble in 2001-2002 to solve a short term problem. Only for it to blow up into a bigger problem in the medium term.
The rates don't have to be identical...what?
Inconceivable.
so why was Mario pissing his pants and shovelling money in to lower the rates of countries deemed "too not in line with our expectations" ?
I see on the ECB website that they claim that OMT will be fully sterilized; how do they expect to achieve this? Please correct me where I'm wrong, but buying (and holding) sovereign bonds on the secondary market makes the sterilization a bit difficult..... I must be missing something
http://www.ecb.int/press/pr/date/2012/html/pr120906_1.en.html
Check this out:
http://www.zerohedge.com/news/guest-post-how-draghi-opened-door-hyperinflation-and-denied-fed-exit-strategy
Thanks very much, i see the mechanics, as explained by the T accounts.
I'm really trying to understand here, but the end state of the T acc for the EU Banks and EU Gov is an offsetting asset & liability for the original deposit (when the EU banks) bought the bonds. Why does the EU Gov issue bonds? Because it needs money of course... If this is true (and I'm sure it is), surely the EU Gov will reduce the deposit as the cash is spent... The T accounts imply a perfect balance, until the EU Gov starts to spend. Once the cash leaves the bank, it must be inflationary, right?
Nothing new here. They are still looking for someone else to fix the problems they created, but to fix the problems on their terms. Why does this remind of (Ayn Rand's) Atlas Shrugged?
The Socialist European States of Goldman.
Has a nice ring to it, doesn't it?
the neo-feudal Oligarchy Euro state of Goldman...the best "socialists" in the world were the kings of old, they were the hyper-state.
Use "socialist" like lipstick not like graffiti, it will be closer to the truth. For graffiti see Bruce Krasting.
Draghi in the photo with his wheelbarrow of money to bailout broke stupid bwankers and bankrupt silly politicians is central banking in a nutshell
To print or not to print
the one and only policy option
all else is 22 tons of window dressing for these most simplistic and dull crones
bubble Ben is humping $40bn a month across the pond, got your shovel ready yet Mario?
Clos, but no cigar. But you could add a few high-class prostitutes and child sex slaves to the picture to fix that.
It is helpful to consider the differences between the EZ, and (let's say) the US.
In the EZ, the ECB and its currency is totally seperated from the nation states that use it.
The ECB has 1 (count them, just 1) mandate, to keep inflation at or just below 2% per year. It has NO growth/employment mandate.
And what do we see? We see the Fed QEing to infinity, supposedly to bring down unemployment, but in reality to sustain the USG's $1trillion and rising budget deficit.
And in the EZ? We see some sterlised QE, some purchases of govt. bonds, and we see huge austerity to bring govt. budgets back into balance. The ECB will print to avoid deflation, that is their mandate. They will not and are not printing to fund govts. The opposite is true. Govts are being squeezed really hard. And so are their populations. The ECB cares not a jot (quite right too) as it is only interested in preserving the stability of its currency.
The differences really couldn't be more stark could they?
And yet no one here gets it, and we see these amusing photos with Draghi and wheelbarrows.
Well, we will ALL get it eventually be assured.
ha, ha, ha, Orly... "I'll buy anything"..Draghi!
A bill in the hand that bought groceries for a week, won't be able to purchase a kernal of wheat when all is done.
FUBAR and this will end badly!
The Germans actually let that turd into Berlin?
One would think some of the 4.5 trillion printed by the FRBNY would have loosened the economy but, I've not seen a dime!
The ECB promises 489 billion in assistance to Greece, Ireland Spain Portugal etc. yet they have 25% unemployment.
Who, exactly, other than Goldman-Sachs and JP Morgan i.e. Rothschild is benifiting from all this QE?
Long Molitov cocktails and pitchforks, tires and petrol to make banker necklaces!