Guest Post: Mario Draghi, Hawk For Whom?

Tyler Durden's picture

Submitted by Tuur Demeester

With ex­?goldmanite ‘super mario’ at the helm of the ECB, expect more money printing, a two tier banking system, and a bigger role for the IMF. After 8 years of Jean-Claude Trichet, the ECB gets a new face: the Italian Mario Draghi. From his recent statements in the press and elsewhere, many assume he will rather be a ‘hawk’ than a ‘dove’, meaning that Draghi will only print little money and will not lower interest rates aggressively. But a look into the past of this man makes us wonder: hawk for whom?

Mario Draghi, Hawk for Whom? (pdf)


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Bring the Gold's picture

But will he hit the BRIC for more gold coins? That's what I want to know.

cat2's picture

Ride goldtardz, bitchez!

Kitler's picture

Placing a former Goldmanite at the helm of the ECB is like placing a convicted serial pedophile in charge of an orphanage.

In the meantime the vacancy at the head of the Financial Stabilty Board caused by Mr. Draghi's departure will be filled by former Goldman Sachs of London director and current Bank of Canada Governor Mr. Mark Carney.

Perhaps that rogue trader was right... Goldman Sachs does in fact rule the world.

I must add to my GS long position in my EOTW investment portfolio.

supermaxedout's picture

Hawk for whom. This is really the big question.

Everything can hapen of course but one thing should not be forgotten. Draghi is the man till now favored by Merkel and Berlusconi. And these two are not pro Goldman Sachs.

What are Draghis real intentions? We have to wait.  Maybe its too late then but it looks anyhow catastrophic. No matter what Draghis real agenda is.

Pretorian's picture

Read this: He was not only employ of Goldman but Managing Partner, so still interest in the firm.

Market Efficiency Romantic's picture

Not sure, but thought I read somewhere that similar to Paulson, he had to sell to avoid conflicts of interest. In Italy certainly with the same nice tax pardon Paulson got on his stake.

Eireann go Brach's picture

The Squid just put another one of its tentacles firmly up the arse of the Europeans!

disabledvet's picture

i imagine there's trillions in CDS inside that "thing." interesting that Europe doesn't want to have those suckers "initiated." that sounds far from pro-Goldman, unless of course they're the debt holder. (they are the second largest bank in Germany.) And since we now know "they lied Greece into the EU" i imagine they have a it trillion of that?...too. Who knows. What is a trillion anyways? Right now it's "MF Global."

LawsofPhysics's picture

Wow, just wow. We are going straight up or straight Down on monday

JW n FL's picture



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bank guy in Brussels's picture

Great to have a Belgian contributor on Zero Hedge, on the main thread, no less!

Tuur Demeester edits a Dutch-language financial newsletter, MacroTrends, out of the town of Peer in the Limburg Province of Flemish Belgium. He is a libertarian fan of Murray Rothbard and Jesús Huerta de Soto, and has been helping get their work published in Dutch. Demeester is also involved in the hippie-era-origin Sudbury School movement.

Tuur Demeester wrote above:

« In multiple EU countries, the population will rise against the austerity measures ... »

He's quite right on that one, it may well be borderline-revolutionary here, with our wonderful grand tradition of people in the streets, as we have had ever since 1789 and storming the Bastille ... but it is perhaps not the clear ending that, as Demeester writes, « ... the European Union will break up or fall apart. »

The common trading zone is likely to stay, whatever adjustments are made to the common currency membership.

And I can't but feel that the European leaders have something else up their sleeve in the long run ... somewhere between the 'Freegold' complex of ideas, often put forth here in the comment section on ZeroHedge by Spitzer, and a re-structuring of our social protection systems so that they are more sustainable, i.e., out of current tax revenues.

That latter will be the almost necessary response to European people in the streets, who in the end will insist on maintaining a social protection system, which, after all, is part of why life is so nice here.

Schmuck Raker's picture

Thanks for the background on Demeester, and sharing your opinion.

The lack of EU residents posting here is a shame given the importance of events in your backyard.

disabledvet's picture

I'm glad to hear things feel good in Brussels. Spain and Italy are "On the Brink" as our Treasury Secretary titled his book on the financial crisis. This is the only work from a primary source on the matter btw. That's it! It's a great one though and i recommend you read it. More than likely you are looking at the greatest population movement within Europe since tens of millions arrived here in America--unless you're counting those who "were moved" as the Red Army proceeded towards Berlin. The USA is about to have one of those as well. The "former" thing that is. There is a Big Red 1 in Kansas of course. They don't "move" people. They protect them.

ArkansasAngie's picture

The banksters and the governments of the western world are desperate to cure insolvency with liquidity. Too bad it won’t work.


The problem of course is the collateral damage that will be inflicted

GeneMarchbanks's picture

For Whom?

The Vatican that's for whom. Goldman is now is perfect position to make all our nightmares become reality...

JR's picture

I think that one’s been losing its steam over the years, say about 50 years…

Tic tock's picture does someone come up with a policy of 'too-big-to-fail'?-  Jesus, Hubris, much

DCFusor's picture

Reaaaaaaalllly.  Funny how desparate bankers want us to believe that - even some here seem to think the end of the world would come if say, 3-4 of the "big banks" failed.

Not hardly.  I'd barely notice, other than the dancing in the streets.  I'm sure greedy companies everywhere would quickly, if not overnight, find other ways to exchange value as a survival issue.  Do you really think most large and small companies would voluntarily go out of business just because some bank did?  Even if we had to go to something bitcoin like - it would happen very fast.

Yeah, hurbris and vanity.  Those who the gods would destroy, they first make proud.

JR's picture

How many key financial observers have finally summed up the architecture of the unelected banker cartel that now controls most all the planet’s financial policies and markets?  Add this man to the list - Bruce Wiseman.

Draghi is no stranger to Wiseman, who summarized in late 2009 the GOLDMAN CONNECTION and its near complete domination of the world’s financial systems. Here is Wiseman’s conclusion :


Almost no one on the planet has grasped what has occurred here.

Most central banks are answerable to no one. The U.S. Federal Reserve, for instance, is a private bank. It is owned by shareholders. Yes, the President appoints the Chairman, and the Chairman must testify before Congress, but no one gives them orders or tells them what to do. Again, they are a private, not government, institution...

And it is the newly created Financial Stability Board (2009), operating as an arm of the Bank for International Settlements, that now structures and dictates the rules and regulations to be carried out by the central banks of the world.

And given the fact that central banks essentially operate independently of their national congresses or parliaments, the FSB now controls the monetary policy of the planet.

It is now, for all practical purposes, the Politburo of international finance. And who is the Chairman of this little known entity based in Basel, Switzerland? Mario Draghi. Draghi was a Partner at Goldman Sachs until, like Henry Paulson, he left Goldman in 2006. Paulson took over the U.S. Treasury and Draghi became the Governor of the Bank of Italy (Italy’s central bank) and in April of this year, Chairman of the Financial Stability Board.

Draghi is also a member of the board of directors of the Bank for International Settlements. In fact, the BIS board reads like a Goldman reunion committee. Mark Carney had a 13-year career with Goldman Sachs, where he became the Managing Director of Investment Banking before becoming the Governor of the Bank of Canada and a member of the BIS board.

William Dudley, President of the New York Fed and former Partner at Goldman Sachs, is also a member of the board, along with Draghi.

And there you have it. Complete financial control of U.S. financial policy and markets, from the White House and Treasury, to the New York Fed, the New York Stock Exchange and the Commodity Futures Trading Commission. Control of the World Bank along with the most powerful member of the International Monetary Fund, and at the top of the fiscal food chain, the Bank for International Settlements and its Financial Stability Board.

Market Efficiency Romantic's picture

I wonder, if he has truely been dogmatized by GS. It was actually a relatively short interplay in his career and at least they are spinning it this way now, was less involved in the day to day operations, but rather responsible for central bank interaction. Pretty expensive advisory, though, making him a managing partner and bringing him onto the even more elite partnership committe.

Also, from the very back of my head, some dots connected: A European central banker from the outside immediately elevated to the very strategically oriented partnership committee only to then manage a straight walk thorugh the head of the Bank of Italy to being the head of the ECB just at the most fragile time for the EUR. The power in the partnership committee and its head shifting from NY to the London office. Exceptions being made in upcoming regulatory frameworks concerning FX and FX derivative trading at banks.

Just a very speculative guess, but a breakup of the Euro, the emergence of new/old currencies and eventual increase in potential trading and advisory revenues could be the next big strategy shift at GS. As we have noticed recently, the current strategy is dead, not only does their market intel deteriorate due to distrust by clients, regulation and competitive trading environment additionally bury their current business model.

JR's picture

The fact is, Mario Draghi was a groomed and trusted “player” before he reached Goldman. And there he was kept long enough for the Goldman training that would prepare him for the insider key positions to come.

The incestuous relationship of big banks, university economists carrying passports of more than one country, heads of government, the IMF and the Federal Reserve is striking; frightening. 

Here is Draghi’s Wikipedia biograhphy. I find it very interesting that from the beginning this EU-appointed head of the European Central Bank has had insider connections, starting as early as his graduate days at MIT under the supervision of Franco Modigliani.

Born in Rome, Draghi graduated from La Sapienza University of Rome under the supervision of Federico Caffè, then earned a PhD in economics from the Massachusetts Institute of Technology in 1976 under the supervision of Nobel Laureates Franco Modigliani and Robert Solow. He was full professor at the University of Florence from 1981 until 1991.[2]

From 1984 to 1990 he was Executive Director of the World Bank. In 1991, he became director general of the Italian Treasury, and held this office until 2001. During his time at the Treasury, he chaired the committee that revised Italian corporate and financial legislation and drafted the law that governs Italian financial markets. He is also a former board member of several banks and corporations (Eni, IRI,[3] BNL and IMI).

Draghi was then vice chairman and managing director of Goldman Sachs International and a member of the firm-wide management committee (2002–2005). A controversy existed on his duties while employed at Goldman Sachs. Pascal Canfin (MEP) asserted Draghi was involved in swaps for European governments, namely Greece, trying to disguise their countries' economic status. Draghi responded that the deals were "undertaken before my joining Goldman Sachs [and] I had nothing to do with" them, in the 2011 European Parliament nomination hearings.[4][5]

The following I wrote in 2010 shows the Modigliana connection:

The Greek “cross currency swap” engineered by Goldman Sachs just after Greece was admitted to Europe’s monetary union, for example, involved:

Greek Prime Minister Contantine Simitis, leader of the Panhellenic Socialist Movement,

Lucas Papademos (vice president of the European Central Bank from 2002 to 2010 and member of the Trilateral Commission since 1998) then governor of the Bank of Greece's rep on the IMF,

and Christoforos Sardelis, head of Greece’s Public Debt Management Agency at the time, who held Swedish citizenship for a number of years and came to his public post from the Bank of America, and is now with Banca IMI, the investment banking unit of Italy’s Intesa Sanpaolo.

Papademos, educated at MIT, had been at Columbia University and in 1980 was senior economist with the Federal Reserve Bank of Boston. He formed his Fed connections when he was a top research assistant to the late Nobel Prize-winning economist Franco Modigliani, who was born in Italy but left Rome in 1938 when Mussolini announced new laws against the Italian Jews. Modigliani had close contacts with the Federal Reserve and his students, along with Papademos, have included Charlie Bean, Deputy Governor of the Bank of England, and Stanley Fischer, Governor of the Bank of Israel.

Papademos now serves as European vp with its president, Jean-Claude Trichet, former alternate governor of IMF, governor of the World Bank and member of the Washington-based financial Group of Thirty. He’s also former chairman of the Paris Club, a financial group of officials of 19 countries that can provide debt cancellations, for restructuring for indebted companies and creditors referred by the IMF.

Fischer, before becoming an Israeli citizen to head Israel’s central bank, had been vice president and chief economist at the World Bank, first deputy managing director of IMF, vice chairman of Citigroup,  president of Citigroup International, head of the Public Sector Client Group, a member of the Washington-based financial Group of Thirty, and Fed Chairman Ben Bernanke’s Ph.D. thesis advisor at MIT

At MIT, Modigliani worked closely with Nobel laureate Paul Samuelson, uncle of National Economic Council Director Lawrence Summers (family name earlier had been changed from Samuelson to Summers).

Market Efficiency Romantic's picture

Thanks for your insights. I was aware of some of the connections, but not the depth of connections and scientific inbreed of the global monetary elite.

Bansters-in-my- feces's picture

Mark Carney is an ex goldmanite too.

Refereing to an earlier post on golmanites by Kitler.

Golman Sachs & J P Morgan Chase = USSA Govt.

Gag me...!!!