Mario Draghi Responds To Zero Hedge: "There Is No Plan B"

Tyler Durden's picture

This happened earlier today, at the ECB press conference:

Scott Solano, DPA: Mr Draghi, I've got a couple of question from the viewers at Zero Hedge, and one of them goes like this: say the situation in Greece or Spain deteriorates even further, and they want to or are forced to step out of the Eurozone, is there a plan in place so that the markets don't basically collapse? Is there some kind of structural system, structural safety net, especially in the area of derivatives? And the second questions is: you spoke earlier about the Emergency Liquidity Assistance, and what would have happened to the ELA in Cyprus, the approximately €10 billion, if the country had decided to leave the Eurozone?

Mario Draghi, ECB: Well you really are asking questions that are so hypothetical that I don't have an answer to them. Well, I may have a partial answer. These questions are formulated by people who vastly underestimate what the Euro means for the Europeans, for the Euro area. They vastly underestimate the amount of political capital that has been invested in the Euro. And so they keep on asking questions like: "If the Euro breaks down, and if a country leaves the Euro, it's not like a sliding door. It's a very important thing. It's a project in the European Union. That's why you have a very hard time asking people like me "what would happened if." No Plan B.

Secondly, I think the ECB has shown its determination to fight any redenomination risk. And OMT with its precise rules and acting within its mandate, is there to this purpose. So that's the answer to the first question.

The second question was about the ELA, but again it's related to "if Cyprus leaves"  and again we don't have that in mind, so.... No Plan B.

Informative. We do have three follow up questions:

  1. With Capital Controls in place in Cyprus indefinitely, do local ATMs dispense "political capital" instead of actual capital?
  2. If the Euro is not like a "sliding door", is there a more apt analogy of what the Euro is?
  3. What are the "precise rules" of the OMT? Earlier, Mr. Draghi replied to the FT's Michael Steen, who asked for the second time month in a row, if there will ever be a legal term-sheet for the OMT, that "he hopes so" - it appears to us that based on this answer there are not only no precise rules for the OMT, but there are no rules period.

Finally, here is the response by the EURUSD the second the Zero Hedge questions were asked.

The full exchange takes place 57 minutes 45 seconds into the clip below:

And in Italy:

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Dr.'s picture

Classic, Tylers!

ghandi's picture

Well deserved Kudos!

Pinto Currency's picture

Plan B is of course Draghi and all of the other hapless central planners are thrown out, the nation state prevails and we go back on the path of 5,000 years of previous history to sound money.


nope-1004's picture

I think any question is basically pointless.  No disrespect to ZH or SS, but this fucker lies like crazy, as they all do.  Didn't Cyprus pass the "stress test" within the last year?  FARCE.  Draghi is full of shit.


hedgeless_horseman's picture



No Plan B.

Horseshit.  Plan B stands for Bonds...EuroBonds.



PS:  Scott, the absolutely beautiful brunette to your left thinks you are kind of cute.  Go for it. 

Spider's picture

So no "sliding door" exit means what?  Looks like someone is going to be breaking right through the glass ... not going to be pretty folks.

The Big Ching-aso's picture

When political capital becomes more important than financial capital you end up with no capital at all.

Popo's picture

Uh... But Mr Draghi, the Maastricht treaty does allow for nations to leave the Eurozone.

So given that nations *are* allowed to leave:


Either you have falsely represented the nature of the European Union to the peoples of Europe, or you are grossly negligent in your role.

Pick one.

hedgeless_horseman's picture



Pick one.

Why just one?

redpill's picture

Eurofucked - Adj. - The state of realization that your tiny broke country that you thought was part of a voluntary union of sovereigns is actually a perpetual debt slave with no future.

BaBaBouy's picture

So What Does That Mean ?????

They Have DECIDED For ALL...

It's EURO Or DEATH ???

hedgeless_horseman's picture



Plan C is ZRRP (Zero Reserve Ratio Policy). 


"...the system of reserve requirements is not needed to the same extent as under normal circumstances..."

Matt's picture

Euro goes purely digital. Your money can only be moved between banks and accounts within banks as you make purchases and recieve wages; you can never withdraw paper bills.

Skateboarder's picture

That's right, you stupid fucking iTalian dragon. Be scurred.

Jack Napier's picture

It's not a sliding door, it's a trap door.

smlbizman's picture

and lets not forget to thank mr. scott sure at this time bringing up o-hedge is like having aids, ......thank you scott for probably never ever being asked back to another press conference, but it was so worth if we can get stutterin john to ask the next quest. that would be awesome.....

BorisTheBlade's picture

Why 'or', it could be both, first euro, then slow and painful death in the name of European integration.

Spigot's picture

You forget that these idiots actually believe they control Euroland, etc. They are delusional sociopaths. When the Captain and the First Mate and all the officers of a ship are mad as hatters, its time to jump ship next port, yes?

Plan A has been in the works since 2009 wherein they gave themselves the "power" to resolve organizations (banks and non-banks) by fiat, simply by using depositor accounts (a liability to the organization) as insurance to make the organization whole. Their first test of this was Cyrus: FAIL. There literally is no Plan B. That is their entire plan.

Middle_Finger_Market's picture

Zero Hedge is my rock. Salute el capitains! 

Withdrawn Sanction's picture

Eurofucked - Adj. - The state of realization that your tiny broke country that you thought was part of a voluntary union of sovereigns

Kind of like these United States ca. 1860 (as opposed to THE United States that emerged afterward). 

smlbizman's picture

i have a question....what if the titantic hits and iceberg an sinks?...i cant answer that, cause it cant life boats idiot...

edit...and that last chick at the end is fricking smokin...burgundy top....

BLOTTO's picture

The Plan is, their is no plan...thats the plan...


Just let everything get perverted - the economy/financials, religion, nationality, genders and family...

Divide & conquer


'They' Create the Chaos...


And then 'they' bring in there Order...

Thats when it starts to get 'bad.'

TBT or not TBT's picture

Europe will get around to the realization they need a final solution for their old people. Just goes along with the mass dehumanization the statist freaks have been advancing. First the baby bust then a few decades later bust out the painkiller overdose syringes, as is routinely done in the europeon sick care system. Or just dont give them water some hot afternoon so they dehydrate to death, in agony, like the French did to 15k old people during a hot spell a few years back.

The Heart's picture

If one were to add up the ways the population reduction agenda is attacking and killing the world's populations, it would stagger the normal thinking mind.

You have the air filled with chemtrails and more that most have never heard of. You have the water filled with all sorts of poisons. The foods are GMO for most with more chemicals in them. The big pharmaceutical companies are killing many every day. The lame stream media is killing the world's people with dis/mis-information. The politicians all lie to further this globalist murderous agenda. Chemicals are seeping into every part of life. Starvation is rampant.The oceans are dead. The radiation is being allowed to spew it's slow killing effects onto the entire world from all over, with fukushima being the worst crime of all. Gee, have we forgotten anything? Add your globalist population control/reduction killing method here if one has been missed.

Long story short, there are more things killing off mankind than there was say, two hundred years ago. All part of the banksters world domination and population reduction plans. This kind of evil in the killing of the elders happens in the USA also. They drug the elders, starve, and dehydrate them also. No one really cares about the dying old folks. This is a crime to humanity to ignore those who gave so much so many could have what they have today. If you have not been to an old folks home to SEE those who are suffering, you should go. Anyone that can watch all that suffering without feeling their pain, and then multiply that by thousands of hospices all over the world, is just not human. Pray for those who suffer with no family or friends to be there in the final days of one's life. This is one of the saddest realities in this unreality that there is.

Pray for the poor and suffering human kind that are ALL dying slowly every day. Hedge that!

BTFDemocracy's picture

I like how the Brunette to the left of Scott starts smirking when he mentions ZeroHedge.

MeelionDollerBogus's picture

Your nonsense is disturbing. The population is ever-increasing and the food for the population is ever-decreasing.

This leaves nature no choice: you can’t provide food & water if there is none.

There’s an over-population agenda not a de-population agenda. The agenda is to ensure more babies are made for slavery to the elite, more deaths happen so life-spans get shorter for the serfs only, more debt and begging is needed so the slaves never feel they have a choice to run, nowhere on Earth to escape to.

As for everything else "killing man off" there's so many more things in medicine, running water & sanitation, irrigation for farms, keeping so many more people alive & over-birthing today than ever before, the mere risk of some toxins causing some of the weaker humans to be ill or die isn't keeping pace. Even war isn't keeping pace like it used to do vs the entire birthing population of sheeples.

Know who runs a lot of the elite? The VATICAN. Know what their policy is? NO BIRTH CONTROL, MAKE MANY BABIES.

That's the real elite agenda.

Harbanger's picture

You can ask me anything, anything.  Except, what would happen if?  Too much political capital to answer such pettiness.

Spitzer's picture

No its actually the right answer. This closet dollar bull hotel wont fess up to the reality that the Eurozone is not stupid enough to print to oblivion like the print zone does.


TBT or not TBT's picture

You lost me at "the euro zone is not stupid"

Popo's picture

Serious question: Is it possible to have "no plan B" and still be a democracy?

Ghordius's picture

serious answer: it happened before, many times - in fact democracies are famous in history for being stubborn on certain matters (and quite fickle on others)

serious question: has any country a Plan B for it's currency?

GoinFawr's picture

Twelve year old Victoria Grant does,

though of course she can't speak for the rest of her fellow Canuckistanians, who must be utterly oblivious.

hedgeless_horseman's picture



You can ask me anything, anything. Except, what would happen if?

Do you really believe that Mario vastly underestimates the possibility of the liklyhood ratio not being zero? 

No way. 

Plan B cometh, and you will beg for it.

TBT or not TBT's picture

Democracy=tyranny. A republic is what you want, of limitited enumerated powers, respectful of natural rights, with election of representatives. Too much democracy is the problem. Democracies vote goodies from the public treasury to be paid for by minorities.

MeelionDollerBogus's picture

Nonsense again. Democracy is freedom. It’s choice. Without democracy only state-run dictatorship by elites can exist. There is no 3rd choice. Back before mass-transit globally there was a 3rd choice: nomadic tribes. That choice is gone.


and I see a red arrow but no reply.

Perhaps you'd like corruption to the core encoded to the laws of the land, slavery & whores, military dominance in a Constitutional Republic... Rome again? That's what would happen to the USA if it was to remove democracy.

1100-TACTICAL-12's picture

ZH shining the light on the cockroaches...

Harbanger's picture

"edit...and that last chick at the end is fricking smokin...burgundy top...."

I like the brunnette chick looking over at Solano.  Not the chunky red head, although a couple of beers may change my mind.

knukles's picture

If I didn't know any better I'd guess that the Hedge is populated by a buncha lecherous old geezers.
But I do know better.
It is populated by a buncha sick twisted funny old geezers....

pods's picture

Some young(ish) ones too knukles. :)

Tunga's picture

she's googling; What is so funny about zero hedge? 
I'd google that. 

AlaricBalth's picture

Plan B is being developed and implemented. Draghi knows this and did not address the preparations some banks are making for redenomination risk.

This is a paper from the Bank of International Settlements (BIS) which interprets the current increasing trend of Target 2 balances of Eurozone banks, especially the Bundesbank in Germany.

"5. Changes in TARGET2 balances: hedging redenomination risk

But changing TARGET2 balances do not reflect only the stock adjustments of German banks. They also reflect banks’ response to the risk of a re-emergence of national currencies, so- called redenomination risk. The response by some banks headquartered outside the euro area has been to exaggerate the pattern of financing of the peripheral deficits in the 2000s, which saw core Europe finance peripheral Europe’s global deficits while the rest of the world accumulated claims on core European governments (Chen et al (2012) p 4).

Draghi (2012) interpreted yields in peripheral Europe in 2012 as reflecting not just the credit risk of strained sovereign and bank finances, but also redenomination risk.8 As market analysts subsequently pointed out, pinning down the redenomination risk in prices requires a host of heroic assumptions. These included, at least in the analysis by MacGorain (2012), the probability of exit, the scale of the subsequent depreciation, and the price of the bond in the new currency. Rather than enter into such calculations, we look for evidence in banking quantities during the first quarter of 2012.

And this analysis of the BIS report is quite interesting.

"Cecchetti, McCauley, and McGuire (2012) believe this suggests both foreign and European banks continue to harbor doubts about Europe’s future.

The downtick in France’s (red) target 2 imbalances is also noteworthy. I’m very negative on French bonds.

The large exposure of German banks to the rest of Europe partly explains the willingness of Germany to back “extend and pretend loans” and ECB printing...I have suggested on several occasions that Germany could be among the first to leave the Euro. One could argue this is happening; of course, this trend could reverse.

Catalysts for Germany removal: a. Europe pushes through laws for joint Euro bonds despite Germany’s resistance or b. Europe otherwise passes resolutions that threaten Germany’s sovereignty.

The less risk German banks have to the rest of Europe, the more likely German removes itself. Regardless, Target 2 balances are worth watching."

Pinto Currency's picture

The BIS, EU, IMF, Fed Reserve, and other central planning groups have really done it.

There will be enormous disruption to peoples' lives world-wide and because of the internet there exists an unprecidented understanding of the source of the problem this go-round.

In the 1930s, FDR said the crash was because of a "few bad apples" and better regulations were required.  That will not suffice this time.

Meat Hammer's picture

You underestimate the power of stupid people in large groups.  They have the internet, too.

nuinut's picture

... and they congregate here.

Tunga's picture

What ever happened to that Mussolini guy?
Hypothetically speaking of course.