Hyper Mario Draghi Speaks

The Goldman pro-inflation emissary is now in Berlin. We can only hope he is not using a wheelbarrow as a pedestal. Here are his quotes:

  • DRAGHI SAYS FALLING PRICES CURRENTLY BIGGER RISK THAN INFLATION
  • DRAGHI SAYS EURO-AREA UNEMPLOYMENT IS `DEPLORABLY HIGH'
  • DRAGHI SAYS DISRUPTION OF POLICY TRANSMISSION `DEEPLY PROFOUND'
  • DRAGHI: BIG RATE DIFFERENCES DUE TO BREAK-UP FEARS UNACCEPTABLE
  • DRAGHI: ECB HAD TO CREATE BACKSTOP AGAINST DISASTER SCENARIOS

Disaster scenarios meaning reality being allowed back? Becase there is nothing like petulant central planners when the markets don't do as they command.

Some funny ones:

  • DRAGHI SAYS OMT WILL NOT LEAD TO DISGUISED GOVERNMENT FINANCING

Well yes, it will be quite "undisguised"

Then on to acronyms:

  • DRAGHI: UMLIMITED NATURE OF OMT SENDS CLEAR SIGNAL TO MARKETS
  • DRAGHI SAYS OMT WILL NOT LEAD TO DISGUISED GOVERNMENT FINANCING
  • DRAGHI: NO SIGNS OMT ANNOUNCEMENT HAS HURT PRICE EXPECTATIONS

What is this OMT he keeps talking about? Has anyone actually seen it in play?

A bone in there for Germany:

  • DRAGHI SAYS RATES DON'T HAVE TO BE IDENTICAL ACROSS EURO AREA

Phew, because Germany trading at the same yield as Greece would be great in the socialist European states of Goldman, but a little impractical apparently.

And the punchline:

  • DRAGHI SAYS EURO AREA MOVING IN RIGHT DIRECTION

Yup. Extreme right. Just ask the Greek Neo-Nazis.