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Bazooka Economics

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Parliament must then act. Doing so is planned for September. Betting odds suggest surrender. Chancellor Merkel long ago sold out to Brussels. 

Draghi wants authority to buy toxic sovereign debt. Doing so reshuffles a sinking ship's deck chairs. ECB's mandate prohibits it. Draghi's back door strategy failed. 

He loaned Eurozone banks $1.2 trillion. Hoped for sovereign debt purchases didn't materialize. Plan B calls for Draghi to do what troubled banks won't.

Conservative opposition is vocal. Senior German Finance Committee member Hans Michelbach said:

"The central bank under the leadership of Mario Draghi has pursued increasingly adventuresome contortions to get around the prohibition against state financing."

According to Christian Social Union general secretary Alexander Dobrindt :

"If the ECB buys sovereign bonds, it would be akin to state financing through the back door. The ECB would be leaving the path of monetary stability."

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Concern is over triggering an inflationary spiral. Germans know their troubled history. Cooler heads want repeating what preceded the Great Depression, Hitler, and WW II avoided. Anything is possible when policy makers are unrestrained.

Draghi is a predatory banker. Once a Goldman Sachs alum, always one. People needs aren't his concern. Sovereign debt buying has strings. Crushing austerity is mandated.

Nations accepting aid must agree to Memorandum of Understanding terms. Doing so means surrendering fiscal sovereignty. Lower wages, higher unemployment, fewer social benefits, gutted pensions, and perhaps blood in the streets follow.

Key also is that everything tried so far failed. New policies rework old flawed ones. Failure again is certain. Half life successes get shorter.

Germany's Bundesbank opposes Draghi's scheme. So do conservative Bundestag legislators. Free Democrats (FDP) finance spokesman Frank Schaffler called the ECB "a state within a state, beyond any legal and political accountability."

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Draghi goes his own way with full money power backing and most politicians willing or cowed to go along.

Reports from Germany say people are spending old D-marks. Retailers obligingly take them. The longer Europe's debt crisis festers, the more likely reinstatement is possible.

On January 1, 2002, euros officially replaced D-marks. They lost their legal tender status. Billions were retained. Germans again use them. 

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I was born in 1934, am a retired, progressive small businessman concerned about all the major national and world issues, committed to speak out and write about them.

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