For better or for worse, Mario Draghi is probably the only one of the EZ circus of clowns to actually know what is happening. He may well be the only one not in denial. And for all the preening and pontificating, were it not for Draghi in the summer of 2012 with his “whatever it takes” commitment the Euro would probably be history by now.
Of course the German nomenclatura in its infinite wisdom challenges the only thing that saved the Euro. That is the bond buying plan to keep interest down. Nevertheless, fortunately for the Euro if for nothing else, the commitment was enough to stave off the speculation that was allowed to destroy the Greek, Portuguese and other economies.
Whether the Euro is worth saving is another matter entirely and it appears from recent remarks leading up to the European elections that more and more voices are beginning to doubt this.
But back to Mario Draghi and his sense. The German led austerity imposed by authoritarian rule programme has, as it inevitably would, led to recession and deflation. None of the politicos ordaining overall economic policy lifts a finger to amend this disaster in the making. Instead, they expect Draghi to lower the interest rate to stave off inflation.
This is not just denial, it is criminal idiocy. Okay. So, what if Draghi had today or does next time around, cut the interest rate from 0.25% to 0.10% say. What difference will this make? How can playing around with interest rates achieve anything much at all when they have been consigned to hover around zero for years in response to the exigences of the neo liberal deregulators?
In other words the weapon of setting interest rates to guide the economy in and out of slumps, has been completely blunted. But the Circus of Euroclowns still expects Draghi to solve all the problems they have created and persist in creating through the dunce caps in economics they are still firmly wearing.
But Draghi has said quite clearly. All I can do is gain time. Time which the clowns should use to take appropriate measures to set the economy on a path for growth instead of decline. Draghi has been very successful in gaining time for them. However, instead of using it, they have taken it as proof that “their” policies are “working”!
So instead of acting they just let the can roll down to the cliff while clutching at straws that everything is going to plan!
And perhaps it is if the plan is to destroy Europe and The EU.