Power of Story Send a Tweet        
- Advertisement -

Share on Google Plus Share on Twitter 2 Share on Facebook 1 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend (3 Shares)  

Printer Friendly Page Save As Favorite View Favorites (# of views)   3 comments
OpEdNews Op Eds

Irrational Draghi Exuberance

By       Message Stephen Lendman       (Page 1 of 6 pages)     Permalink

Related Topic(s): ; ; ; ; , Add Tags  Add to My Group(s)

Must Read 1   Supported 1   Valuable 1  
View Ratings | Rate It

opednews.com Headlined to H3 9/8/12

Author 194
Become a Fan
  (191 fans)
- Advertisement -

Irrational Draghi Exuberance

Draghi's plan doomed to fail.

- Advertisement -

by Stephen Lendman

Thursday was Draghi day. He explained what ECB watchers knew. At his Frankfort press conference, he said Governing Council members agreed to unlimited bond buying. It's called Outright Monetary Transactions (OMT).

- Advertisement -

Bundesbank President Jens Weidmann alone dissented. He called Draghi's plan "tantamount to financing governments by printing banknotes." Doing so creates more problems than solutions.

In late August, Weidmann said bond purchases were "too close to state financial via the money press for me. The central bank cannot fundamentally solve the problems this way. It runs the risk of creating new problems."

OMT will target government bonds with one - three year maturities. Longer-dated debt with residual maturities of that duration will be included. Purchases ostensibly will be sterilized to keep money supply neutral. Don't bet on it. Earlier ECB promises fell short.

- Advertisement -

Draghi hopes to contain borrowing costs. Expect short-term success only. At best he'll buy time. Since crisis conditions emerged in fall 2007, every plan tried failed. They bought time, but little else.

Next Page  1  |  2  |  3  |  4  |  5  |  6

 

- Advertisement -

Must Read 1   Supported 1   Valuable 1  
View Ratings | Rate It

opednews.com

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.

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon Share Author on Social Media   Go To Commenting

The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The McCain-Lieberman Police State Act

Daniel Estulin's "True Story of the Bilderberg Group" and What They May Be Planning Now

Continuity of Government: Coup d'Etat Authority in America

America Facing Depression and Bankruptcy

Lies, Damn Lies and the Murdoch Empire

Mandatory Swine Flu Vaccine Alert