Ask Mario Draghi A Question

Tyler Durden's picture




 

It is hardly the world's best kept secret that it will be a rather chilly day in a very exothermic Hades before a member of Zero Hedge is invited to a central bank press conference to ask a legitimate question. Which is why we are delighted that Scott Solano with the German news agency DPA, who will be at the Oracular Draghi's public appearance tomorrow, has been kind enough to solicit Zero Hedge readers' questions for the former Goldmanite tasked with inflating away Europe's ~$10 trillion debt overhang problem, which he would then ask by proxy (assuming he is not bound and gagged once it leaks to the Frankfurt funding fortress that what he asks may be... provocative).

Scott's contact info is in the clip below.

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Wed, 04/03/2013 - 16:48 | 3405345 Divided States ...
Divided States of America's picture

Can you FUCK OFF?

Wed, 04/03/2013 - 16:50 | 3405351 nope-1004
nope-1004's picture

Why do you wear circa 1944 spectacles?

 

Wed, 04/03/2013 - 16:53 | 3405380 TheGermanGuy
TheGermanGuy's picture

Didn´t your parents show you enough attention when you were a child?

Wed, 04/03/2013 - 16:55 | 3405393 francis_sawyer
francis_sawyer's picture

Mario... What do goats dicks taste like when you blow them?

~~~

&, do 'circumcised dicke taste different from 'non-circumcised dicks'?

Wed, 04/03/2013 - 16:57 | 3405410 Spider
Spider's picture

I'd rather see Draghi answer questions from Main Street Cypriots

Wed, 04/03/2013 - 17:00 | 3405431 Zer0head
Zer0head's picture

Who is your controller?

Wed, 04/03/2013 - 17:02 | 3405448 PiratePawpaw
PiratePawpaw's picture

OT, but I dont care...I need to rant. sorry...

In ADDITION to the $11,000 I gave to the fed govt last year AND the $2000 I gave to the county AND the $5000 I gave to the state and local govt..........it just cost me ANOTHER $422 to remain a law abiding tax paying citizen for another year. Im so freakin happy I could vomit..........maybe now they can afford to fix the damn potholes in my road. I doubt it..... I hope the rest of my debt-serf friends enjoy tax time as much as I do.... What the Hell do I get for my $18,422?.......protection from Russian or French invasion?!?....I could SO kick France's ass right now............I could have spent that money on a pound of gold and been FAR better off...........you are welcome assholes. enjoy your vacations Obamas. Im off to find some preparation H, my sphincter hurts........ /end rant..........   Have a nice day. PP

Wed, 04/03/2013 - 17:06 | 3405471 PersonalRespons...
PersonalResponsibility's picture

 

OT as well:

Will Tyler(s) please stop with the bitcoin propaganda.  Why not buy litecoins?

https://en.bitcoin.it/wiki/Litecoin

 Why not change the start-bits and create a new bitcoin2 ledger network?   

 There can be bitcoins legers 1 through 10000000…(?)

 Don’t buy bitcoins.

 

Wed, 04/03/2013 - 17:15 | 3405514 Pseudo Anonym
Pseudo Anonym's picture

no btc because you have a shit load of litecoins to unload on the greater fools?

Don’t buy bitcoins.

Thu, 04/04/2013 - 17:54 | 3410025 Gidas19
Gidas19's picture

Draghi,

Is there a Plan B? And also how do you feel about Zerohedge readers, and also is there a sliding door?

Thank You

Wed, 04/03/2013 - 17:06 | 3405475 traderjoe
traderjoe's picture

"I could so kick France's ass right now."

Classic.

Wed, 04/03/2013 - 17:08 | 3405482 bobola
bobola's picture

It is hardly the world's best kept secret that it will be a rather chilly day in a very exothermic Hades before a member of Zero Hedge is invited to a central bank press conference to ask a legitimate question.

If the mentioned scenario did happen, would ZH advertise it?

What happened to Marla?  She posted here early on.

Wed, 04/03/2013 - 17:55 | 3405710 gmrpeabody
gmrpeabody's picture

Marla, actually, turned out to be..., a guy.

Tyler wasn't amused.  ;-)

Wed, 04/03/2013 - 17:03 | 3405452 Rubicon
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Love your hair Tyler

Wed, 04/03/2013 - 17:04 | 3405456 1C3-N1N3
1C3-N1N3's picture

Hypothetical scenario: the day has come when a 100% depositor haircut is insufficient for you. At what point do you begin to physically seize food from citizens' plates?

Thank you.

Wed, 04/03/2013 - 18:28 | 3405838 enloe creek
enloe creek's picture

 citizens are nothing but consumers, you have a marshmallow life paid for by the efforts of previous generations and future generations, you are in the sweetest spot in history! 

Wed, 04/03/2013 - 17:34 | 3405605 Ghordius
Ghordius's picture

"I'd rather see Draghi answer questions from Main Street Cypriots" - some of them have more beef with a different gentleman called Panicos, who as Governor of the Cypriot NCB is the real "boss" of all things monetary, there. The role of the ECB in the Cyprus Affair was after all - very limited, bordering to zero...

Wed, 04/03/2013 - 18:11 | 3405778 Urban Redneck
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That's like saying the role of the Marriner Eccles building in US money creation is rather "limited" because the money creation actually takes place each night at the 12 district banks when the 12 district banks reconcile their ledgers against the multitude of member banks' ledgers.  

Without the ECB (and policies which allow the CBC to stay open for business), the CBC is DOA, without the CBC every bank is Cyprus is dead.  Since the ECB has an insiders' view of the CBC balance sheet and its liquidity projections, it can tailor its policies to extract whatever concessions are needed from the CBC, and by extension the rest of the banks in Cyprus.

The word of the law, the spirit of the law, and the practice of the law are all distinct studies.

Wed, 04/03/2013 - 19:01 | 3405965 Hythlodaeus
Hythlodaeus's picture

Not only that, but one thing is the Law and another the regulations made by officials, which after all is what you have to follow (one can always go to court if you think it is wrong). A famous XIX century spanish politician, the Count of Romanones, purpotedly said "You make the laws, I'll make the regulations".

Wed, 04/03/2013 - 19:02 | 3405973 Ghordius
Ghordius's picture

UR, if the CNCB had not been a member it would not have gotten the ELA support, the bailin money, etc. etc. Do you think it would have had a better fate? I don't

Wed, 04/03/2013 - 20:04 | 3406199 Urban Redneck
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If they weren't a eurozone member- they wouldn't have signed up for a haircut on Greek debt, or keep returning to the trough of tier-1 Greek bonds.   I don't think they ever had an opportunity for a graceful exit from eurozone because of the way their banking industry was structured (as the low barrier to entry, high-yielding window on the eurozone establishment),  but at the same time it was a bargain with the devil, the ECB had insight into all the Cypriot cards, as well as control over collateral haircuts and regulatory authority.  

The ECB could (and I would assume, did) model any proposed action against member banks interests and (I would assume did not) advise what steps were necessary in order to prevent further impairment in a timely fashion.  They then demanded a course of action which would impair the viability of the entire banking sector of a member.

It's not a club I would be interested in joining, but they made their own bed and now they have to sleep in it.

Wed, 04/03/2013 - 17:38 | 3405416 hedgeless_horseman
hedgeless_horseman's picture

 

 

"To reduce the reserve ratio, which is currently 2%, to 1% as of the reserve maintenance period starting on 18 January 2012. As a consequence of the full allotment policy applied in the ECB’s main refinancing operations and the way banks are using this option, the system of reserve requirements is not needed to the same extent as under normal circumstances to steer money market conditions."

 

http://www.ecb.int/press/pr/date/2011/html/pr111208_1.en.html

 

 

  • Why, exactly, is the system of reserve requirements not needed to the same extent as under normal circumstances?  Are depositors really less likely to pull money from banks, now?
  • What must happen for the ECB to drop the reserve ratio below the current level of 1%?  
  • What would be the danger of ZRRP being confused with ZIRP in the media?
  • How would a Negative Reserve Requirement Policy (NRRP) work in Europe?  Have you hired the CME to investigate this concept?
  • In what country might we find an ECB warehouse full of Eurobonds?
  • Will Grexit be Euro positive, or Euro negative, over the long term?
  • Does the ECB have a Working Group on Financial Markets, and when do they take vacation?*
  • Do you swap more than just USD with Bernanke?
  • Are you aware of the mortal dangers of repatriating ECB gold now held in London or New York?
  • How do you say ponzi in Italian?
  • Why should anyone follow Thomas Stolper's advice regarding the Euro?
  • Do you find that wheel-barrows are more ergonomically correct than pallet trucks, or is it just, "tradition?"

 

*stolen from TD, circa 2012

Wed, 04/03/2013 - 17:58 | 3405723 Ghordius
Ghordius's picture

LOL - in honour of my avatar I'll try to answer some...

- "Are depositors really less likely to pull money from banks, now?" -> depends from the country. the ECB is pushing and pushing but the damn banks won't lend to the SMEs if they don't get some collaterization incentive - more about it soon

"...the ECB to drop the reserve ratio below the current level of 1%?" -> a Krugman Attack from Mars?

"...Negative Reserve Requirement Policy (NRRP) work in Europe?" -> some of our more cautiious supporters - like Ghordius - would really dislike that

"...ECB warehouse full of Eurobonds?" -> even if the parliaments of the eurozone submit to this incessant request from Wall Street and the City - printing and storing eurobonds would be something the EU would do, not the ECB

"...Grexit..." -> it would be bad policy to officially discuss this in detail, but any exit from a peripheral country would be long term positive. the exit door is as important as the entry door for the EUR project

"...take vacation?" -> like Fafnir, the dragon, the ECB never sleeps

"Do you swap more than just USD with Bernanke?" -> good one. the swaps are now back to quite low levels, aren't they? And sometimes the question arises: which banks needed help? after all, plenty of US bank presence in London, with lots and lots of euro contracts and committments

"...Thomas Stolper's advice" -> the Squiddie? to be frank I don't remember him being right, I'll have to look it up

"wheel-barrows" -> pallet trucks? no, the ECB is modern network of 17 among the oldest national banks of the world which have enough traditions. so euros travel in containers

Wed, 04/03/2013 - 18:19 | 3405808 hedgeless_horseman
hedgeless_horseman's picture

 

 

the ECB is pushing and pushing but the damn banks won't lend to the SMEs if they don't get some collaterization incentive - more about it soon

Soon?  Like right after "normal circumstances" return, reserve requirements go back up, and hell freezes over?  Or a different kind of soon?

Wed, 04/03/2013 - 19:03 | 3405976 Ghordius
Ghordius's picture

soon = next press conference

Thu, 04/04/2013 - 03:55 | 3407091 zhandax
zhandax's picture

HH, when you mentioned reserve ratios, you caused me to remember a search I did last night after seeing the UBS piece which included this titbit, 'frb Chicago refused to discount frb NY paper'.  I didn't get the whole story, but it appears that frb Chicago may have refused because, at the time, there was a 40% gold reserve requirement for frb notes issued (now simply called dollars).  It seems by early 1933, frb NY's gold reserve ratio had slipped as low as 24%, causing it to be operating outside of frb regulations, as well as posing (to Chicago, at least) an unacceptable risk.  Upon reaching the 24% reserve ratio, the frb NY chairman publicly announced that he could no longer operate the bank with such a dangerously low reserve which preceded executive order 6102.  If anyone can point me to a link to flesh this story out more, I would love to read a complete version.

Wed, 04/03/2013 - 17:13 | 3405502 Pseudo Anonym
Pseudo Anonym's picture

i saw what you did there

&, do 'circumcised dicke taste different from 'non-circumcised dicks'?

Wed, 04/03/2013 - 16:56 | 3405405 Dr Paul Krugman
Dr Paul Krugman's picture

Why don't you do more to help the economy?

Wed, 04/03/2013 - 16:57 | 3405411 nope-1004
nope-1004's picture

It's spelled, MOAR !!!!!

 

Wed, 04/03/2013 - 16:59 | 3405430 Pure Evil
Pure Evil's picture

Hey krugcrap, shouldn't you be asking, "why won't the ECB print just as recklessly as the FED"?

Wed, 04/03/2013 - 17:05 | 3405462 Dr Paul Krugman
Dr Paul Krugman's picture

Recklessly?  Printing? 

First, it is an asset purchase program that Bernanke is working.  M2 has not expanded greatly like all the inflationistas say.

Second, unemployment has continuiously fallen since the begining of the said programs.

In Europe unemployment has risen.  So who is being reckless?

Wed, 04/03/2013 - 17:08 | 3405484 walküre
walküre's picture

You aren't invited. Why not and are you at least a bit jealous?

Wed, 04/03/2013 - 17:09 | 3405492 Dr Paul Krugman
Dr Paul Krugman's picture

The Europeans in charge have not taken my advice.  Not one bit.

Am I jealous?  No, just concerned.

Wed, 04/03/2013 - 18:01 | 3405732 Ghordius
Ghordius's picture

we listen, doctor. every word of advice you give... we try very hard to do the opposite

Wed, 04/03/2013 - 18:39 | 3405862 James_Cole
James_Cole's picture

M2 has not expanded greatly like all the inflationistas say.

Even Krugman himself wouldn't make such a ludicrous statement.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011/10/gc%201.png

Thu, 04/04/2013 - 01:22 | 3406923 All Risk No Reward
All Risk No Reward's picture

Hi Paul,

You might have missed this question the last 8 times I asked it, so here we go for try number 9 (and yes, I will continue to increment the numbers until you answer the question):

If growth is defined in monetary terms and money is debt (interest bearing) please explain how exponential growth of debt is sustainable into eternity. If money (debt) exponential growth is not sustainable into eternity, then WHAT HAPPENS WHEN THE EXPONENTIAL MONEY (DEBT) GROWTH FAILS? I made the question bold in case you are having vision problems and couldn't see the question. Hopefully this helps. TIA...

Consequences of Krugman's Pimped Fractional Reserve Banking 2) - Poverty - Debt is not a choice

https://www.youtube.com/watch?v=juQc0rLdB-E

Do you get off enslaving the proletariat to debt owed to the people who made you and can also trash you?

Aren't you just a modern version of a well paid house slave?  How's that reality going to resonate throughout eternity?

Wed, 04/03/2013 - 17:16 | 3405515 TeamDepends
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Second, unemployment has continuiously (sic) fallen since the beginning of the said programs.

And you believe that?

Wed, 04/03/2013 - 17:23 | 3405541 jmcadg
jmcadg's picture

Krugman - Reckless, Maybe, Disingenuous Definately.

Wed, 04/03/2013 - 17:24 | 3405548 Another-Ex-RPI-Man
Another-Ex-RPI-Man's picture

Right, but still I want to see BB repaying 17T without printing money. As long as everyone don't demand the debt repay all is fine. Europe used to think that way.

Wed, 04/03/2013 - 19:37 | 3406106 xtop23
xtop23's picture

1) Velocity will increase at some point. Then it gets decidedly fugly.

2) Non-persons falling off the Earth does not a true decrease in unemployment make. 

3) Europe obviously needs to cherry-pick the talent we have computing our CPI.

Thu, 04/04/2013 - 04:12 | 3407101 auric1234
auric1234's picture

Asset purchase? Tell me mr krapman, what is the market value of those "assets"?

Oh, right, there's no market. How would you know?

 

Wed, 04/03/2013 - 17:01 | 3405437 francis_sawyer
francis_sawyer's picture

Besides the fact that you're NOT Paul Krugman [which is an honor], & you have nothing relevant to say...

~~~

Well ~ is there anything else you have to offer?

Wed, 04/03/2013 - 17:07 | 3405473 Dr Paul Krugman
Dr Paul Krugman's picture

What do you have to offer?

Wed, 04/03/2013 - 17:40 | 3405647 thisandthat
thisandthat's picture

Aren't you the "Nobel"?

Wed, 04/03/2013 - 17:01 | 3405433 McMolotov
McMolotov's picture

I just shot out my neighbor's window because his dog was yapping too loudly. What have you done lately?

Wed, 04/03/2013 - 17:39 | 3405634 thisandthat
thisandthat's picture

Because it would only end up hurting it (I'm going on a limb and assume he has any concern (and clue) about it - I know, silly)?

Wed, 04/03/2013 - 16:55 | 3405398 Pure Evil
Pure Evil's picture

They look eerily familar to the spectacles Himmler wore.

Mein Fuhrer

Wed, 04/03/2013 - 16:57 | 3405421 nope-1004
nope-1004's picture

Exactly.  Draghi is a freak.

 

Wed, 04/03/2013 - 16:50 | 3405361 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is to reprimand comment - Central Bank is adequately FIJCKED, Bankster is already to do too much FIJCKING, and Bankster is to enjoy FIJCKING, and if misinterpret, is construe as invitation to further FIJCK us little citizenry. Please, no more!

Wed, 04/03/2013 - 16:55 | 3405390 Cangaroo.TNT
Cangaroo.TNT's picture

Ill Mitch, is it you?

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