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Mario Draghi Responds To Zero Hedge: "There Is No Plan B"
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:
- With Capital Controls in place in Cyprus indefinitely, do local ATMs dispense "political capital" instead of actual capital?
- If the Euro is not like a "sliding door", is there a more apt analogy of what the Euro is?
- 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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Mario is exactly the type of person who would have in 1939 denied that the Germans could go around the Maginot Line as it was too "theoretical". Europe is in even bigger trouble than I could have imagined, they have no plans, just empty talk and ECB money for worthless junk paper, the only question is how long before the rest of the EZ looks just like Greece with jobless starving people and no medicine for the sick?
If you go to the Ambrose-Pritchard column found in "FrontRunning", you'll find this gem:
"Lord Turner says the current policy has become dangerous, yielding ever less returns, with ever worsening side-effects. It would be better for central banks to put the money into railways, bridges, clean energy, smart grids, or whatever does most to regenerate the economy.
"The policy can be "wrapped" in such a way as to preserve central bank independence. The Fed or the Bank of England would decide when enough is enough, or what the proper pace should be, just as they calibrate every tool. That at least is the argument. I merely report it.
"Lord Turner knows this breaks the ultimate taboo, and that taboos evolve for sound anthropological reasons, but he invokes the doctrine of the lesser evil. "The danger in this environment is that if we deny ourselves this option, people will find other ways of dealing with deflation, and that would be worse.""
Remember, the "Cyprus Solution" was leave less money in the Proles hands and increase Corporate Taxes. "That'll solve the problem!" Well, lookee here. Who could've guessed that the "Evil Lords" of Capitalism would one day be singing the Praises of Despotic Socialism!
CW
<golf clap>
I would say Mr. Draghi : You (and your friends) vaaastly underestimate THE PEOPLE!
I think Draghi may have been talking about the sliding door in the BangBus.
Long BangBus subscriptions, Short ECB firewalls...
Can anybody eat political capital?
How does one cook it? Olive oil and salad?
Saussages?
Usually you burn it cause it's too poisonous.
plus it's fissile, so beware of critical mass
He must not read zerohedge much if he believes the Tyler's and the majority of commenters underestimate the political willpower for the Euro.
No, we understand that the politicians and bankers will do anything, anything including crimes against humanity to preserve the Euro. So it is not us who underestimate the political willpower, it is the rest of the world who mistakenly thinks there are limits to how far these people will go.
And this answer should strike fear into the hearts of Euro citizens. He is confirming here that there are no limits to what the political masters are willing to do to preserve themselves as the rulers of the continent.
The UNELECTED rulers...
RE: HD
THE APPOINTED rulers!!!!!!!!!!!!
Do you think you can cook some broccoli fried with political capital?
Political capital is Soylent Green!!!
I was about to post something similar but you said it better.
I remember five years ago on Mish's blog a comment (I think it was from "Fedwatcher") saying that we all underestimated the leaders (particularly the Fed) - he said they would do ANYTHING, absolutely ANYTHING to maintain the status quo and that they were mad. I will always remember that post. From an investor's point of view it was valuable advice. It went some way to saving me from making some big investment mistakes.
"So it is not us who underestimate the political willpower, it is the rest of the world who mistakenly thinks there are limits to how far these people will go."
Second amendment. Your antidote to plan B.
This douche bag is a fucking idiot. Why not just have Big Bird read instead? We all know he is a nobody.
I don't know if we should be flattered or frightened that these SOBs know we exist. My homeowners policy does not cover drone attacks.
Interest rates are not set by governments - another one of their deceptions.
US interest rates follow the 3 month T-Bill rate - and the rest of the world watches this.
http://bullandbearmash.com/chart/weekly-3-month-tbill-largely-unchanged/
3M T-Bill Rates have been largely unchanged since 2009.
and the 3month tbill rate is not affected by 85 billion in purchases per month plus a previous trillion. you are an idiot.
2. If the Euro is not like a "sliding door", is there a more apt analogy of what the Euro is?
Roach Motel. Or Hotel California.
Mr. Draghi: "Is this going to hurt?"
The Hangman: "No one's complained yet!"
Hmph, thanks for ramping that EURUSD up...
I'll do anything to save the euro, but I won't do that.
We should have chiped in and purchased a WB7 print for him, to show how much we love him.
If I understand Draghi correctly, he is stating that no matter how horribly flawed the Euro may be, no matter how much havoc and misery is wrought as a result of austerity, cuts, confiscations, selling off of state assets (und so weiter), the European leadership is all-in on their bet that the Euro can and will endure. Sort of like when Ben Franklin quipped, in response to uncertainty regarding the American Revolution, "we must all hang together or we will surely all hang separately."
The problem may lie in the viability of the cause.
In the case of the American Revolution, it has lasted about 220-240 years (depending on whether you see 1776 or later, when all the rules were codified), with the Eurozone.
For the modern Eurozone, I think Borat has it nailed as 'not so much.' Time will tell. The problem with the leaders is that to them it is all a confidence game, and so any doubters are necessarily portrayed as pariahs...
Answers:
1. Yes, its a fiat political capital that will equal, roughly, the value of their fiat actual capital. That is to say, nothing.
2. Hmmmm. I think the most apt analogy would be the BlackFlag Roach Motel (tm), Roaches check in, but they don't check out.
3. Yer kidding right.
Bitcoin hacked: Price stumbles after buying frenzy....
http://www.cnbc.com/id/100615508
"More than 80 percent of all bitcoin-USD trades and more than 70 percent of all bitcoin currency trades are done on Mt.Gox's servers, according to the company, making it is a major target for anyone wanting to take down bitcoin trading."
I would be very careful with Bitcoin....
I doubt it was bitcoin itself.
It seems U have ask more questions
I get the impression from this that Mario is aware of Zerohedge, and doesnt like it
It really was amazing how many people in the audience looked up / gasped / smiled in surprise when ZH was mentioned...
Will this be a recurring event?
Perhaps, but Mr. Solano will not be chosen to ask any questions.
Wow... I've not seen a politician (if you can call him that) allude to the NWO so blatantly in recent times..."They vastly underestimate the amount of political capital that has been invested in the Euro"..."It's a very important thing. It's a project in the European Union"...... He atleast could have given us the obligatory "bitchez" at the end of that insultingly blunt response...Dick.
He is correct.
The EU and the Euro is the plantation owners house.
The rest of the world is the cotton fields.
But there is a serious problems happening in the fields.
He will cut his domestic servants pay to the bone to free up capital for his fields.
He will continue to do this until this global trade / extraction farce ends in collapse.
And end it will ... rather sooner than later, but shirley it will
By cutting his euro domestics pay he is increasing the efficiency of his business model.
But he is of course not addressing the structual problems within his business of debt.
Efficiency is both his problem & solution.
Increasing redundancy kills his extractive business model , increasing efficency kills his business model.
A slave owner will never accept a life without slaves.
He will continue to push resources upwards until his system has no base as he knows no other life.
They aim to kill billions.
You are correct, but I think a much bigger problem lies in him being as dumb as a ton of bricks ... while thinking he is oh-so-clever...
Remember: Once a Goldman - always a Goldman.
They aim to kill billions, that may be true, but in the end they won't achieve jack shit ... we'll live to see it
What an atrocious answer on Draghi's part. And he wonders why people are not willing to follow him and the other elite into the abyss? Enter Grillo and his popularity.
Please do correct me, but I view investments in political capital (which is Draghi's main reasoning for continuing this ridiculousness) as sunk costs and thus should not be taken into consideration for future investment decisions. In other words, kill the project; the costs are sunk; time to invest in a new more sustainable direction FOR THE PEOPLE AND BY THE PEOPLE.
People like him ......... Cocksuckers
Donations for Tylers please Bitchez!
We've got the fuckers on the run!!!
The better question would be: What if the people of Greece or Spain decide to leave the Euro? Would Draghi answer, that question is hypothetical, and counter, it's a political thing? What would be the political consequences? Politics by all means, even tanks?
It was amuzing how the woman next to him started smiling when he mentioned ZH- She KNEW haha. Keep going Tylers, you views are correct and ultimately more and more people will be exposed to them. Godspeed.
what are we going to do today brain. same thing we do everyday pinky, plan to take over the world. THX1138
'Classical Pavlovian [no plan b,c,.. x,y,z?] Hypothesis'
Hypothetical: Conjecture based upon a rationalized theory?
Hypothesis: A nascent theoretical analysis brought into existence lacking said empirical evidence... the concept of latent logic on the mind's cusp made genius through the creative assemblage of thought-- a benchmark referendum... this quasi-intangible act of balancing concurrent timing to the present?
Reality: Abstract thought-- unique incipient and mutating ubiquitous homogeneous 'building blocks of logic' is this etheral?, this conceptual concrete bastion of plausible evolution, as in a pavlovian coefficient parlor of enhanced enlightenment for futures to embrace?
so, mr. draghi... what say ye, as you can laugh off foolish anticipation of others!!!, and, as your lacking inherent foresight is abundantly clear-- just a waste of time? should not thou be planning for the resurrectional demise of europe
Mario Draghi was just blathering.
Contrary to what he claimed, he vastly underestimates how well ZeroHedge and its readers understand the amount of political capital invested in the Euro by its politicians.
It is precisely this depth of understanding of the lengths the EU will go to, to preserve its hugely flawed single currency that causes so much concern in and around ZH.
TD, how did you not highlight "it vastly underestimates the amount of political capital" in his response. That says it all...it isn't about coutries, economies, and surely not people...its all about political stature and connections. they are forcing these countries into never ending financial purgotory, for that some chance at keeping their jobs.
I'm amazed he is so blunt. Another round of fine Bordeaux for the masters!!
Of course there’s a Plan B. The bright young militants in the U.S. Defense Dept, have plans to attack any country in the world and how it would be carried out; detailed plans, just in case.
It’s the same for the EU banking cartel; they have plans, of course, for survival. And that’s carried through to a doomsday event; with every step to be taken along the way.
Why would Draghi be so flippant as to say there is no Plan B? If outlined, the world’s press would jump to the final conclusion and the Euro cartel eventually would be removed from power. For if they explain their bottom l line, everybody goes to the bottom line.
The Cyprus circumstances do have implications for the United States; they set a precedent.
VIDEO: Interview today with Shadowstats’ John Williams (on LewRockwell):
“If the depositors (in the US) lose their money, the money supply collapses, that‘s money that’s gone from the system; that’s the only way you can get the supply to collapse – which gives you the big deflation.” In the U.S., banks have $10.8 Trillion (confirmed by the FDIC) in deposits and $33 Billion in the deposit insurance fund… and it goes beyond that; the Pension Benefits Guarantee Corporation effectively is bankrupt... the big problem though is the Federal government, it is insolvent in the long term…it cannot possibly cover the obligations it has in place…getting worse by $5 to $6 Trillion per year…
Budget Deficit Exploding Out of Control – John Williams
by Greg Hunter April 4, 2013
USAWatchdog.com
"Economist John Williams says don’t be fooled by the new highs on the Dow. Williams contends, 'The economy is still in serious trouble. The banking system is still in serious trouble. The budget deficit is exploding out of control.' Williams thinks the ongoing banking crisis in Cyprus has global implications. Williams says, 'You have a precedence set in Cyprus that they can seize the funds. They will not guarantee all deposits. If that’s the case, you may have a much worse crisis than you had back in 2008.' Williams adds, 'The big problem is the government is insolvent in the long term.” Williams says the U.S. dollar could start selling off in May because of a deadlock in Congress on the budget. Williams predicts, “The global markets are looking for the U.S. to address its long term sovereign solvency issues. That’s not going to happen. . . . In response, it’s going to be off to the races with a dollar sell-off. That could be the trigger for the early stages of hyperinflation.' Join Greg Hunter as he goes One-on-One with John Williams of Shadowstats.com."
http://lewrockwell.com/hunter-greg/hunter-greg18.1.html
Other than technical differences between EU-CB and the FED (Fed can monetize,) there is no plan B for Furope, US, China JP or GB. They will print and monetize till the end.
All else is smokescreen intended to lie to worldwide markets that we are still in a capitaist system. WE ARE NOT. We are in a Financial Capture of Governments System. This is the unspoked reality that Mario talks about when he references his understanding of "political capital."
I imagine 'Dr Paul Krugman' is a paid troll - the EU have hired a calling centre full of paid trolls to disseminate their odious propaganda. Moneyprinting leads to growth - oh yes, of course. That has worked so well. The intensifying crisis is just because we haven't printed enough. Yes, yes - we hear this tiresome propaganda all the time, from every corrupt controlled mainstream media outlet. And that does of course include all the pathetic hacks who attend ECB press conferences and ask planted questions.
I think it is notable that Draghi clearly knows about ZH and refers to 'these people' effectively admitting that there is an alternative view... it must absolutely infuriate them that there is any opposition to their disgusting policies.
Hence the deployment of Keynesian trolls.
That is already in the works. EU plans a troll control to "correct" public opinion in social media.
Obviously, there are things that can not be said and will not be said....national security matters, ie...Cyprus....like I said before, the PTB will sacrifice the masses to hold onto "world power"...actually, a collapse would suit me just fine...and take down China and Russia a few pegs at the same time...the western world is much better off facing the "music" now while we have technological advantage...wait too many years and you damn sure won't like the tune...as it will be in Chinese probably...these people will not be easily defeated and they are determined to take center stage...for the Oriental Jews are just as power hungry as their Occidental counterparts along with TPTB/western elites...
The Euro must survive, even if we have to destroy Europe to make it happen.
MD
Just like the US forces in Viet Nam had to burn down the village of My Lai to 'save' it from communism. Morally bankrupts means to achieve a noble end are never appropriate.
Does this mean that the sky ain't gonna fall?
It means the sky can't fall, because of the Euro. It's a natural law.
I will go down with this ship
http://www.youtube.com/watch?v=xX3DD7kR9O4
It is apropriate for caprain to die when his ship sinks. Let us just hope he is man who sticks with his words. Time to man the life boats...
" find out what this zero hedge is" and find out where this missure durden banks"
Is that the same political capital that lost market share in the recent Italian elections?
No plan B Mario? - neither do I. My plan A is to throw off the chains of the banksters and their puppets.
The Second American Revolution, gettin' plan A busy in a neighborhood near you.
Market is looking ready to drop here... trading 'heavy'. .. to the battle stations.
Im a bit startled by the reaction on peoples faces when ZH was mentioned; it almost makes me feel unsophistimacated. The way those journalists laughed haughtily, I felt they were laughing at me…I did not laugh at her last month as she pressed (hard) Draghi about using the term unanimous; she seemed to think he was obfuscating and went all investigative journalist on his ass, completely oblivious to the historical standard vernacular of central wankers. And these are the hacks that are going to warn of an ill wind… So if there is no plan B, then there is no plan B; contemplating it would be failure, end of story, Im off to bed. Wake me up when i have to kill yellow people.
When Draghi said you can disregard Plan B, Solano got the answer to his question. There’s a Plan B.
There are two parts to this scenario: the factual material and opinions from observers, and the other, the tyrants trying to cover up what’s going on. It’s literally day and night.
What Draghi is saying is Zero Hedge thinks the Euro zone is going to collapse and it is my job to confront that. It’s the classic you don’t know what you’re talking about kind of answer.
It reminds me of Bernanke’s response to Ron Paul’s comment regarding the Federal Reserve's cover up of the Watergate burglars’ source of funding and the defective audit by the Federal Reserve of the bank that transferred $5.5 billion from the U.S. government to Saddam Hussein in the 1980s: “absolutely bizarre.”
In a perfect world, a duly elected representative of the people responsible for the economies of the EU would have welcomed the question and explained what the problems are and what they are working through; he would have been on your side. But it isn’t that way. It’s Draghi’s job to beat you, to win, to take your stuff. And if he doesn’t do it they’ll get somebody else. It’s a contest. Draghi knows what ZH readers are saying: you’re a crook, you’re stealing the money and the Euro zone is going down.
Zero Hedge forms a pattern of the true dilemma that we’re in with the American and world economies. And Zero Hedge, unlike any other source in the world, provides a place where these true observations can be made. Zero Hedge is international. Every banker, every politician, knows Zero Hedge.
And even though you might disagree with some of things a guest contributor or a Tyler Durden might say, the bulk of the material forms a scenario of truth that can’t be found anywhere else in the world.
Solano was perhaps the most dignified, the most erudite, the most impressive journalist to question Draghi. As for the response of those journalists around him, I thought it was in recognition of a good question, from a good source. Hopefully, that will cheer you up. :-)
Mhh FISCAL AUSTERITY IN EUROPE WHEN BUDGETS ARE IN DEFICIT !? KRUGMAN YOU ARE MAD AND A DISGRACE lol (even though i know you are a troll) - Just GIVE ME NUMBERS OF BUDGETS IN SURPLUS (that would be real austerity) to pay down the debt in Europe. There are NONE - It's ALL BS !!!
'Zees questions are to be... eez so hypothetical.. as to be farcical in eets nature by those type of people who VASTLY underestimate zee power and determination of zee Eurozone. In Soviet Eurozone, zee bank steals YOUR money! Nothing bad will be allowed to occur- we have decreed this. The Law of Gravity has been repealed. In addition, effective immediately, all children under the age of 16 years are now 16 years old. We have decreed this, therefore eet eez so. Carry on.'
Behind the curtain, there have been big plans drawn up that don't include a divided Europe...at this poker table, the game has been designed to win at all cost...these are high stakes, winner takes ALL...so make up your mind who you want running the planet...the egomaniacs on the left or those on the right...you only have two choices...yin OR yang...only dreamers think that yin AND yang can coexist and run the planet...but, then, maybe John Lennon was right when he sang "Imagine"... In "The Dancing Witch Doctor" I take odds with his hopeful dream and opt for a stern dose of reality....
I think what he's saying is that the euro is the end unto itself. In other words, it is political power over one half of every exchange that occurs in the EZ. And that's what central banking ordained by government has always been about.
Here's a take: why would the leader of any current power structure ever tell you there's an alternative to him having control? There's never a plan B. To consider it invalidates everything else.
The lumbering under 3,000 pounds of debt per driver clearly works. Mythbusters had already proven it via "regular analysis" and the visibility exhaust is a clear externality of growth. Video.
http://tradewithdave.com/?p=16100
I am proud of ZH..
the *plan* is drive every soverign euro country into the ground, bail them out, and force austerity on them. Squeeze every drop of productivity out of the masses
Waiting for the question to Chairman Bernanke at FOMC minutes release press conference: "I've got a couple questions from the viewers at Zero Hedge..."
I have questions for Ben that would make him pull his beard out of his face on prime time.
Zero who?
Tyler ....OH TYLER....
How could you underestimate - I repeat - UNDERESTIMATE the importance of the Euro to Europe and underestimate the WILL of the EU, and the ECB?
Was it me? Or did he say the " IMPOTENCE" of the Euro?
Draghi just comes right out and says it-there is NO ESCAPE from the Euro,and God forbid anyone country that did,they would be totally destroyed economically.The people behind the Euro and the ECB and the elimination of the white race fomerly known as Europeans will certainly make an example of the first country that dares defy them,so the others will fall into line.
If the Euro is not like a "sliding door", is there a more apt analogy of what the Euro is? It's a jail door bitchez, now bend over and lube up.
OMT has precice rules.
Subject to change.
Every now and then.
Once n' a while.
When we feel like it.
Occasionally you have to lie a little bit.
That much is certain.
We think.
It's like a trap door.
on a gallows...
Too much political capital invested. And there you have it. Save our sorry fucking asses at all costs. Fuck the EU. Ask the goddamn people on the streets how important the EU is to them. It's important for them to get the fuck out that's what's important.
Once again.......millions of poeples lives destroyed by a bunch of goddamn criminals all with visions of wealth and power, none of which all of us peons wanted them to do.
an iron curtain descends upon europe
Draghi's quote is myopic! He said...."They vastly underestimate the amount of political capital that has been invested in the Euro" is ridiculous, because he only thinks of the capital the politicians have invested, not the millions of European citizens who don't give a damn. The question they ask themselves is: "Do I want to stay in the Euro and be dirt poor or should I leave and at least have a chance to become wealthy [again]?
Regadless.....I like the color of today's Gold Price Girls' shirt, but it seems so loose that it actually might just fall off. Is there a video?
When does the shooting start?
I'm sure the question was asked in a variety of ways from this board, but the exact question the way I phrased it was:
"If for some unforeseeable political reason Spain or Italy decided to leave the Euro, has the ECB or the ISDA put a structural safety net in place to prevent a financial meltdown resulting from the ensuing chaos in the $650TR derivatives market? Specifically, what would happen to all the Euro denominated currency and interest rate swaps that are held at international banking institutions based both in Europe and abroad?"
I really think that focusing on the actual derivatives at the banks is crucial because what does happen if the Spanish banks don't have the Euros to match their obligations? And if there really isn't a mechanism already agreed upon that can be put in place the moment Spain leaves (and it absolutely will - though not before America, Japan, and China have all "contributed"), do all the banks collapse? And if they do collapse, can the banks' equity and bondholders get wiped out and the depositers stay whole? And if not, what happens? Just because something "can't" happen doesn't mean it won't.
On an equally interesting side note, how crazy is the power of the internet that some idiot like me (and I'm sure 50 others) could have the ability to ask Draghi a question?
The $650 trillion figure is open to interpretation.
When Rand Paul was interrogating Hillary Clinton about Benghazi, he asked her specifically if she knew about weapons shipments to Turkey, so since the weapons were actually being shipped to Syria she could answer no with out lying. Which just shows what a tool Senator Paul really is.
Just getting the word derivatives on camera in front of all the worlds financial press was heroic enough and left no wiggle room where Draghi's non answer was concerned.
Great question salvador BTW.
Thanks.
It's totally amazing to me that the word "derivatives" isn't mentioned at every Draghi conference because I can't think of a single reason other than that that Spain and Italy are still in the Euro. Both are going to suffer the consequences of the brain drain of young college graduates who are moving abroad for generations.
In a lot of ways Spain and Italy should be seen as heroic for owning their mistakes for joining the Euro in the first place and sticking it out until the vast majority of the derivatives on the books expire. At the same time, I think it's impossible to underestimate the amount of leverage they have over Germany and the rest of the world for that matter.
Well theirs your answer I think I know where this is going the Eurozone will face collapse maybe later this year or early next. Major Pressure (Merkel) will be forced on the ECB to restructure the PIIGS debt into tier type Eurobonds. but that's just my hunch.
this answer is formulated by someone who vastly underestimates the power of margin calls... BITCHEZ!!
Plan B - “Lancelot, Galahad and I leap out of the rabbit” m.p.
Draghi: "They (people on ZeroHedge) vastly underestimate the amount of political capital that has been invested in the Euro"
Without realising it, Draghi is admitting that the Euro project is being driven by a bunch of psychopaths, hellbent on imposing it and making it work at any cost. Irrespective of the damage it is doing to national economies and societies across Europe and the world.
Except in the scale of the disaster so far, there is little difference between the Euro "project" and Stalin's purges, Mao's 'Great Leap Forward', Pol Pot's 'Year Zero' and of course Italy's Mussolini and Hitler's Germany. All of these "projects" were driven by psychopathic nutters, determined to remodel their countries to one that suited them. These events in history collectively caused the destruction/death of countless millions.
Bernanke has shown Plan B for what it really is "BUY anything that isn't fucking nailed down"
Plan B: A worldwide coordinated bail-in.
Thats funny. All the fresh French immigrants around here had a plan B.
Plan B would be Barter. As in "X amount of gold for Y amount of potatoes".
oh my. this is not good. it's almost as if M-Drag believe's his own BS... euope is screwed
Plan B will be FEMA camps...
Don't dare question banker overlords and their puppet governments...
absolutely no point asking an employee in the kitchen what would happen if a customer left the restaurant. draghi has no brief on matters outside the eurozone. ask him about a plan a, b or c within the eurozone that varies from the maastricht treaty terms or a question like the one below:
what level of pass-through ratio of the ECB monetary policy setting of expanding money supply (via government debt monetization, government debt repos/cash injections to banks and governments) to the expansion of private sector loans (as measured by the level of individual and corporate (non-financial institution) borrowings would you consider to be a failure of the use of this monetary policy setting and how would you adjust your predictive models to reverse and correct this failure?
yanno...print a trilllin euros and get a zero increase in corporate (non-financial) borrowings.
i think it is obvious that the pass through ratio is ZERO, i.e. ineffective as it would be if money was withdrawn. the private sector exists despite central banks and governments, not because of them.
a question that is not this specific will get a "watch me dodge this bullet" or "sigh, you want me to watch me pole dance on the head of a pin again???"
draghi is playing the game with the rule book he has been given, on the assumption that it is the only game that needs to be played.
a plan B within the euro will have to be to take the counteparty risk of all derivatives along with associated collateral management for one two three or any number of failed countperaties.
note there are only 5 counteparties in the derivatives market worthy of note.
"lender of last resort" functionality of the ECB will be akin to appointing a life guard to a beach with a monster rip after 4 people had drowned.
It looks like we are going to have an all Goldman Sachs MMA cage match between Mark “Brutal Reckoning” Carney and Mairo “Whatever it Takes” Draghi. Learn more about the Bashup in Brussels. http://tinyurl.com/c4dlrdt
Bet the farm on Carney. That guy is just waaay too sharp to be hammerfisted by the likes of, well darned near any central banker he'll ever face.
"political capital invested" ie cushy hi paying ecb jobs in brussels.
just registered www.noplanb.eu
because the euro doesn't mean that much for me....
You have to respect the Euro strength today for the short or medium term, but I don't buy it for the long-term precisely because there is no plan B, and plan A is destined to fail. Today's strength seems more to do with the Euro being overextended to the downside, so it needs some time to correct a bit. Probably won't get involved in this anytime soon. We'll see how it handles the 200-day if and when it gets there.
"Jeder nach seinen Fähigkeiten, jedem nach seinen Bedürfnissen!"
This is neither an endorsement nor is it an indictment of the author's intent, but it sure as shit is the current human societal problem. The real issue with all of this, and by 'this' I include the USA / Japan / China economic data, is that the entire fucking lot of you can't even conceptually imagine a "Plan B".
Evolve or die.[1]
[1]Please note that "Plan B" here is not referring to any National Sovereignty issues that may occur over areas of land with a population of under 3 million, or Slovakia with >insert why wikipedia is fucking amazing<, suddenly discovers that the world is full of Lions, Tigers and Bears and they might not get away with the "oil that took the machine to work there in the country" but the general whole thing.
I miss the rhetoric of the 1950's and 1960's. At least you funded the think-tanks that imagined something positive.
typical authoritharian response. "we have no plans for the case cyprus leaving". so the decision is not upto cypriots. cypriots have become slaves of these types. if cypriots don't use their lampposts for a good reason asap, they must be idiots and idiots deserve to be slaves.
Mario has the same telltales as W. Looks like they went through the same conditioning. Sugar coated shit pill, hold the sugar, no lumps. Wormtongue.
Here's Plan A, suckers. Read it and weep.
The Perestroika Deception http://archive.org/details/AnatoliyGolitsyn
I bet this 'speech' was given in Russia hundreds of times.
So the sociopaths are going all in... fucking insane!