{"id":44364,"date":"2019-03-10T07:34:53","date_gmt":"2019-03-10T12:34:53","guid":{"rendered":"https:\/\/olduvai.ca\/?p=44364"},"modified":"2019-03-10T07:34:58","modified_gmt":"2019-03-10T12:34:58","slug":"super-mario-draghis-day-of-reckoning-has-arrived","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=44364","title":{"rendered":"Super Mario Draghi\u2019s Day of Reckoning Has Arrived"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/tomluongo.me\/2019\/03\/09\/draghi-cant-kick-can-next-guy\/\">Super Mario Draghi\u2019s Day of Reckoning Has Arrived<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWithin our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.\u201d&nbsp;\u2014 MARIO DRAGHI JULY 26TH 2012<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">No quote better defines Mario Draghi\u2019s seven-plus years as the President of the European Central Bank than that quote. Draghi has thrown literally everything at the deflationary spiral the Euro-zone is in to no avail.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What has been enough has been nothing more than a holding pattern.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And after more than six years of the market believing Draghi\u2019s words, after all of the alphabet soup programs \u2014 ESM, LTRO, TLTRO, OMB, ZOMG, BBQSAUCE \u2014 Draghi finally made chumps out of traders yesterday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Draghi reversed himself after December\u2019s overly hawkish statement in grand fashion but none dare call it capitulation. For years he has patched together a flawed euro papering over cracks with enough liquidity spackle to hide the deepest cracks.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Ponzi scheme needs to be maintained just a little while longer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He\u2019s not alone. In fact, all the major central banks have been working in concert since the day they broke the gold bull market back in September 2011, when the Swiss National Bank pegged the Franc to the euro which began the era of coordinated central bank policy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And since 2013\u2019s Taper Tantrum when then FOMC-Chair Ben Bernanke&nbsp;&nbsp;<br>timidly announced a future without QE the markets have consistently tore at their resolve to normalize monetary policy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Because when you paper over reality you don\u2019t fix the underlying problems. The losses are still there, hidden in plain sight, held at mark-to-model prices, on central bank balance sheets.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ben retired and Janet took over. She held the fort for nearly her entire term, refusing to raise rates while Draghi sent rates negative alongside Japan\u2019s Kuroda.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Super Mario Draghi\u2019s Day of Reckoning Has Arrived \u201cWithin our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.\u201d&nbsp;\u2014 MARIO DRAGHI JULY 26TH 2012 No quote better defines Mario Draghi\u2019s seven-plus years as the President of the European Central Bank than that quote. [&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":[122,233,280,282,285,21273,1044,534,538,16963],"class_list":["post-44364","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-bank","tag-ecb","tag-euro","tag-european-central-bank","tag-eurozone","tag-gold-goats-and-guns","tag-mario-draghi","tag-monetary-policy","tag-money-printing","tag-tom-luongo"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44364","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=44364"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44364\/revisions"}],"predecessor-version":[{"id":44365,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44364\/revisions\/44365"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}