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Draghi's desperate shenanigans thicken.
ECB President Mario Draghi, who is on his way out anything to push his agenda and make it stick to the ECB long after he leaves, but it may be, it is clearly unrelated to the European economy which has a negative impact on the consequences . And in the process, he is destroying the legitimacy of the ECB's policy.
The latest incident was on Thursday. During the press conference following the ECB's policy meeting, he said, "When in fact it was a meeting of the presidents of the world." the national central banks which represent half of the economy of the Eurozone, and by members of the Executive Board.
Among the key policy changes ECB announced on Thursday to the tune of $ 20 billion a month and a tiny 10-basis point cut in its deposit rate, from the old negative -0.4% to the new negative -0.5 %.
The announcement also included a provision to help banks – which have been re-credited with these idiotic negative interest rates – to be able to save money in the United States. -tier system.
It was the QE portion of the decision that had been triggered by the unprecedented revolt during the meeting. "Officials with knowledge of the matter" said Bloomberg that during the contentious meeting, the members of the Governing Council and the Executive Board who vigorously opposed the restart of QE
- Jens Weidmann, President of the Bundesbank
- Francois Villeroy de Galhau, Governor of the Bank of France
- Klaas Knot, President of the Dutch central bank
- Ewald Nowotny, Governor of the Austrian Central Bank
- Ardo Hansson, Governor of the Bank of Estonia
- Sabine Lautenschlaeger, Member of the Executive Board
- Benoit Coeure, Member of the Executive Board
The countries of the five heads of the national central banks, from Weidmann to Hansson, account for about half of the economy of the Eurozone.
They are opposed to QE, but there is no vote – which is common in ECB proceedings when there is consensus. But there was no consensus. And Draghi simply imposed his agenda.
"Such disagreement over a ten-year-old Draghi's tenure," according to Bloomberg's sources.
Among the key reasons cited against relaunching QE now, according to the sources, it is not urgent, and it is better to save QE for an emergency, such as some big turmoil in the Eurozone following a no-deal Brexit.
Nevertheless, during the press conference after the contentious meeting, Draghi lied to reporters about it, when he told them ridiculously:
"There was more diversity of views on APP [asset purchase program]. But then, in the end, a consensus has been adopted. So the decision in the end showed a very broad consensus. As I said, there was no need to take a vote. There was such a clear majority. "
But this was not the first time that Draghi was exposed as having lied blatantly about what had transpired during the policy meeting.
In addition, it is suggested that the following additional points of reference should be made, "in addition," meeting."
But those were blatant lies too. Sources who were part of the ECB 's June meeting told Reuters that no such options were discussed. Draghi had just gotten away from his own, pushing his agenda, and trying to force the ECB's hand [read… No, Rate Cuts Were Not Discussed: ECB Insiders Out Draghi as Fabricator & Schemer, and Talk to Reuters]
The fact that both of these blatant and manipulative lies – concerning the Thursday meeting and concerning the June meeting – have been reported to be ECB, Draghi is going down in flames public consumption, even as he's trying to force the ECB on a track it can not get off after he leaves.
The ECB already has two mega-problems on its hand: It is a destructive experience that is now and acknowledging that QE as standard monetary policy is an economic failure that creates all kinds of distorted distortions – though it glued to Europe by having more sovereign defaults after Greece's default, particularly a default by Italy.
But now the ECB has a third problem on its hand: The legitimacy of its policy decisions has been revealed to be a joke; and that this circus has become a one-man show driven by Draghi's own agenda.
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