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Merkel Ally Slams Draghi's Plan To "Buy Junk Paper"
While Italian and Spanish political (and business) leaders are lauding Mario Draghi's plan to buy more assets and print more money, it appears not everyone is so excited. As Reuters reports, Christian Social Union chairman and Bavaria state premier Horst Seehofer (who is well known as an ally of Angela Merkel), blasted the ECB's plan: "It's only going to frighten a lot of people when ECB chief Mario Draghi opens up the central bank's money tap and at the same time buys junk paper," somewhat breaking the political taboo of criticizing the potential independence of the central bank.
An ally of Chancellor Angela Merkel criticised the European Central Bank and its president Mario Draghi in a rare public attack, telling Bild newspaper the ECB's new schemes to bolster lending and buy asset-backed securities would scare Germans.
"It's only going to frighten a lot of people when ECB chief Mario Draghi opens up the central bank's money tap and at the same time buys junk paper," Christian Social Union chairman and Bavaria state premier Horst Seehofer said in an interview with Germany's top-selling newspaper, to be published on Monday.
Political leaders in Germany almost never publicly question or criticise the independent Bundesbank, Germany's central bank, or the European Central Bank, although government officials have expressed doubts about the ECB's moves privately.
Furthermore, he noted, reflecting on the rise of Germany's Anti-Europe party (which won a surprise 9.7 percent in a recent regional election.)...
"It is our job to criticise these debt-making policies - our country doesn't need an AfD for that," said Seehofer.
"The majority in the AfD are not a bunch of far-right nimrods but rather there are a lot of intelligent people there skilfully playing on the public's fears," said Seehofer.
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While capacity constraints, treaties, and historical precedent are all against Draghi's plan doing anything for Europe's economies, it would appears the peripheral beggars have once again become choosers and have mitigated any need for reform once again...
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Don't question the magic involved, enjoy the show.
Horst should stop criticizing Draghi. After all, when a three card monte dealer on the sidewalk is fleecing customers, it is bad form to say that the game is crooked. Especially if the dealer has some shills, big black dudes, in the background just looking for an opportunity to hustle off anyone interfering with their earnings.
One could argue that after the financial bailouts, the only thing any central bank owns is junk.
The collateral is -DDDD junk, all CBs need to be EXTERMINATED !
Ah stop your bitching Horst and buy the fucking dip. Everything will be okay just ask Rudolf Havenstein.
Yeah, I don't get it either. Everyone else is doing it and it's working fantastic. What's the problem?
Doesn't matter, really. I can already feel these comments rapidly disappearing down the memory hole. Along with these "treaties" on how the EU and ECB are supposed to function. What were we thinking writing things that only constrained our actions later? I can't believe we hadn't embraced "make it up as you go along" much earlier than this.
Yeah.
See.
The Conspiracy Theorists Were Right
Again
Fuckin' place taken over by a buncha incompetent unelected fascist megalomaniacs
shakin' the pipes while pissing again
Without the backing of Germany Drghi is put on hold. I have not written much about the Euro-zone as of late because nothing is really happening. The Euro-zone is engaged in a talkathon, with fear of an immediate collapse off the table the members of the Euro-zone much like their political counterparts in America just talk about solutions without any action.
For us in America news from across the pond dribbles out in small doses with almost daily media boost of promises that things are about to get better. Now with war a possibility they can only just keep talking. For more on all of "what is not happening" see the article below.
http://brucewilds.blogspot.com/2014/04/euro-zone-update.html
Nothing to work on, really. The hole in the bottom of the boat is fixed because the bilge pumps are keeping up with it.
What Horst knows is that the ECB is really just printing 'German' debt.
No T-LTRO without El'Toiletpaper-O.
Gives a whole new meaning to ASSet backed securities.
Heathen!
"Not through speeches and majority decisions will the great questions of the day be decided - that was the great mistake of 1848 and 1849 - but by iron and blood"
Otto von Bismarck returns?
Goldman Sachs has taken over the western economies. Our best hope is now placed on Putin and China
A European Central Bank just has to chaff at anyone who loves their nation.
End Central Banks!
I'll take him seriously when he actually does something about it, like publicly withdrawing political support for Merkel and calling for Draghi to resign, rather than just giving newspaper interviews vaguely criticizing the ECB.
This.
Seriously though -- I'd prefer to wait until the emz bond bubbled explode and we get to enjoy like -- 22 crisis summets in a 6 week period before minority coalition parties start to pull the rug out from under their coalition partners.
Wait until afd gets 15-20% at the CSU and fdp's expense and then depose Merkel.
Why would you ever take a Politician by his Word??? .. who cares what he said
Guess I should just buy European banks, hand over fist...