‘More sooner, nothing later’says Draghi: what seems confusing today may confirm your worst fears tomorrow

Draghi, the hidden marigold

The two ‘surprises’ in SuperMario’s ECB offering today were nevertheless what The Slog predicted earlier. While we got more QE and lower rates, I did say that the eurozone’s central banker would send a thinly veiled message to member States saying “That’s yer lot” – and he also made that clear.

This sent the markets briefly all over the place, followed by reporting within hours across the board that used words like “backfired” and “fizzled out”. This is really nothing more than the usual triumph of reaction to news over analysis of ramifications.

Having dropped the main rate without using tiers (unexpected) sevenfold to -O.4%, and increased QE by €80bn a month (unexpected) Dragula offered more now. But in saying “we will not be cutting rates any further after that” (unexpected) he fulfilled what I suggested re ‘along the lines of “we must look to sovereign governments for new ideas about economic stimulation, the monetary toolbag being empty”’.

In the immediate to medium term, both the euro and gold will settle without too much movement….and the markets will (quite rightly) lose a little more faith in the Italian Rapscallion: but to think he worries about anyone’s faith is naive. He knew before today that his choices were little beyond lesser evils. They are only a stopgap: a year from now, we’ll look back on today’s balls as cultured pearls strewn before swine.

From here on, the only game in town is poker, and the only chips allowed are solid gold.

If you’re a sociopath (like, for example, Jeremy Hunt) it’s amazing how easily one can garner the sympathy vote by deliberately reducing your own choices. This allows one to emit such sanctimonious drivel as, “Under the circumstances, I have no choice but to…” and then follow it up with “I have done nothing wrong”: Lavabos me de manu mea, and all that.

Being some 500 times brighter than Jezzer, it seems to me Draghi is, in suggesting a eurogroupe change of strategy should be considered, ordering the pig to sing. The Brussels-am-Berlin snouts aren’t going to do that….least of all for a bloke they regard as the Beast of Bankfurt. We are back once again in the tiresome politics of Berlin v Frankfurt v Bundesbank v Paris: for the EU is, verily, a terminal mess.

This is just part of the preface to central bank opportunistic gold buying off-market and in secret. If you like, a fusion of the ideal Debt Jubilee with the malign banksters’ bid for ultimate (and permanent) hegemony. And this is how they hope it will work….given a chance.

First, things will get slowly worse economically, and fiscal debt contagion will – in trying to hide that – proliferate quite quickly.

Second, the already apparent amalgamation of bourses will accelerate – the latest Nasdaq move being part of the process – until such time as any manipulation in any sector will be the work of, literally, a handful of people.

Third, private gold trading will be stopped as part of “emergency measures” (the more social violence by this point, the better) and then central banks will be revealed at last as the heroic revaluers of gold for the purpose of paying off public debt.

But not private debt, obviously: for where would the banks be without that?

Do I think it will come to pass? No: economically, it is a ridiculous idea; and events – both those appearing as ever from left-field, and the predictable ones turning out impossible to control – will show up the élites’ ignorance when it comes to the psychology of anthropology.

However, along the way the Dark Side will easily enlist the media, the political volunteers, and the passive acceptors.

It will be up to us, the NVEs, to raise awareness of what’s going on.

Recently at The Slog: rearrange these well-known letters – CFUK

17 thoughts on “‘More sooner, nothing later’says Draghi: what seems confusing today may confirm your worst fears tomorrow

  1. Oddly as I read the above post the radio was blurting out a advert (paid for) for the FSCS with a quiet, measured voice telling us that ‘your bank deposits are completely safe up to the FSCS limit’.

    Why exactly do we need this constant reassurance? (these ads are on all the time) I don’t recall any previous time in history when we were being constantly propagandised that ‘everything is ok’

    Also – there are ads on TV now for bullion dealers, classical economics dictates that this would not occur unless there was a market for the service…

    Draw your own conclusions from this.

    Liked by 2 people

  2. “We are not in deflation,” Mr Draghi stressed. The entire Frankfurt fire department responded with exceptional speed and dedication but were unable to save his trousers, although miraculously his socks have only been lightly singed around the top. As Mr Draghi is in the habit of making these announcements naked from the waist up, it seems further damage to his wardrobe was averted, but his underpants – which first reports indicate is where the blaze started – appear to have been a total loss.

    Liked by 2 people

  3. Mario, your economics is upside down mate, you need to pump money in at the bottom of the economic pyramid.

    Why has QE not been effective?
    Which way is up?
    Does money trickle down or flow upwards?

    In the 19th Century things were still very obvious.

    1) Those at the top were very wealthy
    2) Those lower down lived in grinding poverty, paid just enough to keep them alive to work with as little time off as possible.
    3) Slavery
    4) Child Labour

    Immense wealth at the top with nothing trickling down, just like today.

    What numpty came up with trickledown?

    No wonder we’ve got problems when economists are trying to work out which way is up.

    We’ve done Neo-Keynesian stimulus.
    After eight years of pumping trillions into the top of the economic pyramid, banks, and waiting for it to trickle down.
    It didn’t work, hardly anything trickled down.

    Try turning it upside down again and see if that helps ………..

    Try Keynesian stimulus.
    Carry out infrastructure projects that create jobs and wages which will be spent into the economy and trickle up (pumping money into the bottom of the economic pyramid).

    If only we had worked out which way was up eight years ago.

    Like

  4. @Stephen

    Yes, she did play beautifully despite looking so anorexic. Apparently, when she hit that top B flat at the end you couldn’t get an American Express card between the cheeks of her arse.

    Like

  5. Hieronmusb remember they closed all the hospitals catering for the mentally ill, care in the community,but it does seem they just found other institutions to congregate in of which Brussels,Westminster and Washington are the biggest,getting sectioned nowadays means being sane and of sound mind after all that is what NVE is really about isn’t it! Turning everything on its” mad” head

    Liked by 1 person

  6. being basically a simple guy i presume what you are saying is that dracula is out of blood ( or says sorry banks closed) so the other vampires must squeeze it out of the rest of us, OK . Got a question what do you think of the Bernie / Trump duo singing ( ever so softly Trade deficit got to go Jobs got to come?? what I am asking is does is trump really going to implement import controls over here or is he just planning on doing some dramatic posturing and will he tell the bankster that the parties over its give back time over here ( if they want to avoid a total revolution cause the mood on the street on this side of the pond is millions of angry white folks ready to kill a bunch of banksters) If trump postures and Don’t deliver some relief what will happen in 2018 is gonna resembled Germany in 32 Just want your thoughts. ( ps the universla mood over herewith those who matter cause they are willing to do something about it is F**k China .

    Like

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