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Live Mario Draghi Press Conference Webcast
The Mario Draghi press conference, in which the Goldman alum will spin tall tales of recovery, is set to begin. Watch it live here. If there are any notable changes to ECB policy, which is not expected, we will be sure to note.
Recall that Draghi said there is no LTRO stigma. Oops.
Key highlights:
- ECB'S DRAGHI SAYS ECONOMIC OUTLOOK SUBJECT TO DOWNSIDE RISKS
- DRAGHI SAYS `DOWNSIDE RISKS' PREVAIL ON REGION'S GROWTH OUTLOOK
- DRAGHI SAYS ECB SEES INFLATION UPSIDE RISKS PREVAILING IN 2012
- DRAGHI SAYS NON-STANDARD MEASURES WILL NEED TIME TO SHOW IMPACT
- DRAGHI SAYS IMPORTANT FOR BANKS TO STRENGTHEN BALANCE SHEETS
- DRAGHI SAYS BANKS SHOULD RETAIN EARNINGS TO STRENGTHEN - And nationalize losses?
- DRAGHI SAYS DATA BROADLY CONFIRM PREVIOUS ASSESSMENT
- DRAGHI SAYS INFLATION LIKELY TO STAY ABOVE 2% IN 2012
- DRAGHI SAYS ECONOMY TO SHOW MODERATE RECOVERY
- DRAGHI SAYS ECB NEEDS TO CAREFULLY MONITOR DEVELOPMENTS
- DRAGHI SAYS NON-STANDARD MEASURES ARE TEMPORARY
- DRAGHI: TOOLS TO TACKLE POTENTIAL INFL RISKS AVAILABLE
- ECB'S DRAGHI SAYS INDICATORS CONFIRM SIGNS OF STABILIZATION - not Spanish bond yields we hope...
- DRAGHI SAYS EURO-AREA ECONOMY TO RECOVER GRADUALLY in 2012
- DRAGHI SAYS FURTHER COMMODITY PRICE GAINS AMONG RISKS
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Re Draghi, the other day was a superb, perhaps definitive ZeroHedge article on the most likely resolution of the European crisis - namely, monetisation, or money-printing - extensively quoting David Zervos at Jefferies, detailing how what has happened in the euro-zone, is really a classic vendor-financing scheme by the EU's northern countries.
As Zervos sees it, Germany and the other Northern nations with positive current account balances (Netherlands, Denmark, Austria, Finland, Belgium), have basically lent money to the peripheral countries to sell their goods and services and pump up their own economies.
These excessive debts cannot be paid back, but the problem is that the unpayable 'debt' is now owned by the northern banks, pension funds and insurance companies, which means the northern countries will quite blow up spectacularly if the debts are written down on the large scale that would include Spain and Italy. Along with Greece, Portugal and Ireland can perhaps be let go - But if the bad debts of Spain and Italy implode, the working people of the north will see and know that their own pensions and assets have gone up in smoke, and so the European political fabric collapses. Plus there is the fact that Spain and Italy will not tolerate one-way austerity for the long term anyway.
Zervos says, this means there is only one answer for the euro-zone: Monetise the debt, and inflate, as has already begun with the two LTRO programmes of Mario Draghi's ECB. Zervos says that it is precisely the success of this monetisation, which made the Greek partial default possible at all.
So now, rather than the northern European governments telling their workers the truth, that their pensions and other assets are only worth maybe half of what they appear, the path of least resistance, is to monetise the debts of Spain and Italy, and let loose the dogs of inflation that will allow Spain and Italy some chance to re-balance against the north.
This will also mean the slow destruction in value of the pension and insurance funds and payments of the people of the north as well, but this is an easier political sell to people - blaming some kind of impersonal 'inflation' as if it is a natural, uncontrollable event - rather than admitting to northern people right now, that their prosperity was 50% fake from the beginning and based on a credit bubble, and having a bank, pension and insurance fund implosion that will bring down EU governments and perhaps the whole current EU framework.
Great piece:
http://www.zerohedge.com/news/ugly-truth-northern-europeans
"Monetise the debt, and inflate"
They have already laid their cards on the table. This is what we should expect from here on out.
The real truth to the whole thing is theyve been monetizing the debt all along, thats all, ever since Ben told congress he'd never be doing that he got right to work printing and buying bonds and stocks while the sheeple are placated thinking hes helping their stock portfolios and 401K's. The real truth is he's bankrupting them, but sheeple never worry as long as theyre tricked a little bit.
A+
Great Summary...everyone should read and understand this scheme bank guy. You have also expalined why I think a Fed "QE" is almost irrelevant since monetary expansion (i.e., money pritning) is occurring on a massive scale anyway in the EU and later again by the Fed to weaken the dollar in turn...back and forth.
I would rather watch Draghi's suicide
Mario Draghi - "I smirk in your general direction.."
WTF is that shitty intro, I just puked my toasts
'As Zervos sees it, Germany and the other Northern nations with positive current account balances (Netherlands, Denmark, Austria, Finland, Belgium), have basically lent money to the peripheral countries to sell their goods and services and pump up their own economies.'
Most Europeans understand the geography of our fine continent pretty well. However, they generally don't understand that supposedly private banks/corporations have been the ones vendor-financing these poorer 'sovereigns' that are mostly in the South. There are way too many of these 'analysts' floating around that only end up concluding that only monetization can save us. It's always the same conclusion and subsequent request: Let us paper over a credit driven speculation orgy turned fiasco.
Downside risk? Huh, right when everything was certified so solved and all.
I think they will print too...its the blame game...inflation or those bad corporations raising prices all the time....rather than the Politicians and Central Bankers taking the blame as they should....so Bernanke says no QE III...but they are printing now....but they have to keep it quiet for the election....next year we will be 4 trillion more in debt..
We'll see how well he can keep $5 gas quiet.
Mario Draghi, now there's a man I would like to see blow his brains out at Syntagma square.
oooh nice German bird there. Highlight of the show.
He lies like a marked man. He needs to be replaced with a referrendum.
I guess you're thinking Monti, but they both should be replaced.
How can anyone appoint a Spaghetti as a ECB president?
i wonder how many babies this devil has eaten
ecb is not going to cut rates anymore.
http://www.cnhedge.com/
This guy spews more filth than Bernanke....great quotes....
Spin this Super Mario!!!!!!
http://confoundedinterest.wordpress.com/2012/04/04/the-pain-in-spain-lies-mainly-in-the-bailout-redux-of-charge-of-the-light-brigade/