The chairman of the ECB came across punching. He will do “whatever it takes”! to save the Euro. And the markets believed him. Perhaps that just goes to show what “the markets” verdicts are really worth, but anyway. He didn’t really say anything new, and there was no announcement of any real decisions, let alone of German agreement with anything positive. Nevertheless, the markets have bounced!
But “whatever it takes” and, the Greek PM’s pledge to keep Greece in the Euro “at all costs”… just what do these fine words mean and has anyone really pondered it? And I mean those uttering the powerful words, not those hearing them. As for Greece staying in the Euro “at all costs”, the current joke doing the rounds here is “oh yes, of course, we MUST stay in the Euro… No matter we won’t even have one Euro left in our pockets!” and that’s a mild version of what “at all costs” means.
As to Draghi’s “whatever it takes!” Sounds forceful, decisive, but what does it mean? And what do “the markets” think it means? Well the markets are more like teenagers high on drugs or something when it comes to heir judgement, and at the moment it is all whooppie! A new fix! And of course loadsamuny (to remember an old phrase) changes hands.
A more sober analysis shows that it is little more than pep talk. And everything, as always, remains at the discretion of Germany. Or in other words the whims and Nonsense Economics dogma of The Frau. So that is hardly something to inspire optimism.
So what has Draghi achieved? Just more Eurofudge, just another kick of the cranky can down the road. In effect what he has probably achieved is a relatively peaceful holiday month for The Frau who cannot be expected to interrupt her holiday! God forbid.