{"id":20160,"date":"2016-04-22T19:02:29","date_gmt":"2016-04-23T00:02:29","guid":{"rendered":"http:\/\/olduvai.ca\/?p=20160"},"modified":"2016-04-22T19:02:49","modified_gmt":"2016-04-23T00:02:49","slug":"draghi-at-war-with-reason-other-central-banks","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=20160","title":{"rendered":"Draghi at War with Reason &#038; Other Central Banks"},"content":{"rendered":"<div class=\"pageTitle blogTitle\">\n<h3><a href=\"https:\/\/www.armstrongeconomics.com\/history\/europes-economic-history\/draghi-at-war-with-reason-other-central-banks\/\">Draghi at War with Reason &amp; Other Central Banks<\/a><\/h3>\n<\/div>\n<div class=\"mainContent\">\n<div class=\"contentWrap\">\n<div class=\"theContent\">\n<p><a class=\"fancybox image\" href=\"https:\/\/armstrongmedia.s3.amazonaws.com\/wp-content\/uploads\/2016\/01\/Draghai-Euro-Crisis.jpg\" target=\"_blank\" rel=\"attachment wp-att-43329\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-43329 aligncenter\" src=\"https:\/\/armstrongmedia.s3.amazonaws.com\/wp-content\/uploads\/2016\/01\/Draghai-Euro-Crisis.jpg\" sizes=\"auto, (max-width: 486px) 100vw, 486px\" srcset=\"https:\/\/armstrongmedia.s3.amazonaws.com\/wp-content\/uploads\/2016\/01\/Draghai-Euro-Crisis-300x200.jpg 300x, https:\/\/www.armstrongeconomics.com\/wp-content\/uploads\/2016\/01\/Draghai-Euro-Crisis-165x110.jpg 165x, https:\/\/www.armstrongeconomics.com\/wp-content\/uploads\/2016\/01\/Draghai-Euro-Crisis-180x120.jpg 180x, https:\/\/www.armstrongeconomics.com\/wp-content\/uploads\/2016\/01\/Draghai-Euro-Crisis.jpg 486x\" alt=\"Draghai Euro Crisis\" width=\"486\" height=\"324\" \/><\/a><\/p>\n<p>Tensions are starting to rise between Germany and the ECB because Draghi will not admit his negative interest rates are causing an economic meltdown.\u00a0<span class=\"Apple-style-span\"><i>\u201cWe continue to expect them (interest rates) to remain at present or lower levels for an extended period of time, and well past the horizon of our net asset purchases.\u201d<\/i>\u00a0Draghi is absolutely clueless and this experiment has no end game. The rest of the central banks are starting to see that Draghi is risking it all for he cannot admit failure. Inflation is a function of interest rates insofar as the rate of interest is compatible with the expected rate of inflation. This is fundamental. Punishing savers and wiping out pensions is not the way to create a future. This will not end very nicely.<\/span><\/p>\n<p>All Draghi is doing is making the smart banks richer. They don\u2019t have to pay anything, but they charge people money for having an account. Yet, if you want to take out a mortgage for 10 years, fully collateralized, they demand 5%. The smart bankers are making the widest spreads in history on a percentage basis between bid and ask. Is Draghi insane? Or is he simply looking at this from the perspective of his former employer \u2014 Goldman Sachs?<\/p>\n<div class=\"articleCategoryTags\"><\/div>\n<div id=\"post-nav\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Draghi at War with Reason &amp; Other Central Banks Tensions are starting to rise between Germany and the ECB because Draghi will not admit his negative interest rates are causing an economic meltdown.\u00a0\u201cWe continue to expect them (interest rates) to remain at present or lower levels for an extended period of time, and well past [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5496,124,233,279,282,284,359,5981,1044,5479,534,558],"class_list":["post-20160","post","type-post","status-publish","format-standard","hentry","category-economics","tag-armstrong-economics","tag-central-banks","tag-ecb","tag-eu","tag-european-central-bank","tag-european-union","tag-germany","tag-helicopter-money","tag-mario-draghi","tag-martin-armstrong","tag-monetary-policy","tag-negative-interest-rates"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20160"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20160\/revisions"}],"predecessor-version":[{"id":20162,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20160\/revisions\/20162"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}