Draghi, the Great Racketeer

20.02.2018 • France

Simone Wapler – La Chronique Agora (France) –

A second crisis of the euro is smoldering. The European Central Bank and the monetary system will be undermined. Prepare your savings to cash the shock.

While I was thinking about an article about the orientation of the savings of the French, enamelled article of nonsense that aroused my discontent, my colleague Cécile Chevré, La Quotidienne de la Croissance , throws me through the office this question: “Simone , do you follow the story of Mario Draghi’s succession to the European Central Bank?

Uh, mmmmm, no.

Error. Serious mistake! It is true that one must always have an eye on the Parasitocracy to try to arm itself against the next racket that threatens us. The mandate of Mario Draghi’s central banker ends in October 2019.

A central banker is a biped extremely well paid and not paying taxes (because of his status as an international civil servant), responsible for covering the stupidity of banks “too big to fail” who have the privilege to lend interest to money that does not exist.

This biped is supposed to watch over “monetary stability” and has a goal of inflation.

The first goal is impossible to achieve in a system where money is available credit in unlimited quantities. As for inflation, it is an intellectual scam that consists in making us believe that a general price increase would be good for the consumers we all are. In reality, it is a tax that does not say its name.

Mario Draghi, great racketeer of ants

Mario Draghi has racketed us by forcing interest rates down and by buying back financial securities on the markets and even in private placement , from 80 billion euros to 40 billion euros per month.

The drop in rates deprives millions of European savers who are capitalizing for retirement, from a decent return. 10 years of low interest rate is 10 years of capitalization and compound interest lost that will never be found since we are deadly.

Redemptions of financial securities artificially raise the markets, forcing investors to buy too much.

The pretext? “Save the euro”. In reality, it is not the euro that is saved by these maneuvers, but an unhealthy credit system that supports zombie banks full of bad debts, and expensive governments whose lifestyle is based on free credit (or almost).

My colleague Cécile Chevré is right. The estate of Mario Draghi is important. The current financial system, like the Italian and French governments, can not support a rise in long-term rates.

A second euro crisis about to burst

Germany now has 900 billion euros of bad loans stored in the European Target 2 compensation system.

Target 2<img src=”https://cdn.publications-agora.com/elements/lca/newsletter/images/contenu/180220-lca-target2.jpg” alt=”Target 2″ width=”550″ height=”433″ border=”0″ />

Source: http://www.eurocrisismonitor.com/

If everything worked well in the Eurozone, the curves should slightly oscillate around the horizontal. This is not the case. Today, the imbalances exceed those reached during the first crisis of the euro in 2012.

The cynical reader will note with bitter amusement that the ECB has an Italian president and a Spanish vice president, the two most debtor countries vis-à-vis Germany.

Indeed, the Germans have just admitted Spanish Luis de Guindos to the vice-presidency of the ECB.

The echoes<img src=”https://cdn.publications-agora.com/elements/lca/newsletter/images/contenu/180220-lca-les-echos.jpg” alt=”Les Echos” width=”550″ height=”477″ border=”0″ />

Luis de Guindos comes from a Cicada country in Southern Europe but is nevertheless considered a “hawk”, that is to say, a supporter of a strict monetary policy (as opposed to a gentle dove for monetary policy).

Admire in passing the photographic treatment of the Echoes of a “hawk” which, of course, is mean.

The echoes :

“In the European Parliament, voices worried about his image of ‘hawk’ and his stint at Lehman Brothers (2006-2008). German economics minister Wolfgang Schäuble, who in the most acute years of the crisis was perceived by Luis de Guindos to be one of those who, within the Eurogroup, firmly only possible way.

This profile of hard does not prevent him from recognizing, today, that the Troika ‘ could have had more political sensitivitywith Greece as with Ireland, Portugal or Cyprus. A great supporter of European integration, he arrives at the ECB with the intention of working for a single deposit guarantee system and for the preparation of new instruments to act counter-cyclically against the possibility of asymmetric shocks.

Note also that our Iberian hawk passed by Lehman Brothers (just as Mario Draghi went through Goldman Sachs). Crony capitalism always works well.

The last phase – totally absurd for a non-expert of the language of wood – simply means that in case of crisis, it will be necessary to cover the fraud of the monetary policy of creating more free credit for the friends.

Here is another comment, from the Saxo Bank letter this time:

“De Guindos and Lane are, in any case, considered as ‘neutral’ in terms of monetary policy positioning. De Guindos is notably known to have posted strong support for QE, which he believes does not create a bubble risk on the financial markets . For his part, Lane maintains that the Phillips curve (link between inflation and the unemployment rate) is still a relevant analytical grid.

As you know dear reader, the Phillips curve – of which it is empirically proved to be false – is another intellectual swindle but it justifies the interventionism whose sole objective is crony capitalism.

As for the fact that Guindos thinks that Mario Draghi’s free credit creation has not generated any financial bubbles, it says a lot about the fake falcon.

What is important to remember at this point is that this “false falcon Iberian” will continue to work in the direction of banks and zombie governments.

What is interesting is that Germany will soon be torn between its own zombie banks (including Deutsche Bank) and Target’s bad debts.

It’s a tragedy. It will take a moment to choose.

Can there be a happy ending to the disastrous global monetary experience of credit? No. There is rarely a happy outcome to the silly experiments piloted by the interventionists.

Who will be the man who will manage the second crisis of the euro?

It would be the German Jens Weidman if we believe the latest poll Bloomberg.

Macintosh HD: Users: waplers: Library: Containers: com.apple.mail: Data: Library: Mail Downloads: FFE23A54-1823-404F-8C53-602E7D282750: DWaHcL8UMAEUVJx.jpg<img src=”https://cdn.publications-agora.com/elements/lca/newsletter/images/contenu/180220-lca-classement-small.jpg” alt=”Macintosh HD:Users:waplers:Library:Containers:com.apple.mail:Data:Library:Mail Downloads:FFE23A54-1823-404F-8C53-602E7D282750:DWaHcL8UMAEUVJx.jpg” width=”550″ height=”288″ border=”0″ />

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