{"id":46753,"date":"2019-06-19T09:08:52","date_gmt":"2019-06-19T14:08:52","guid":{"rendered":"https:\/\/olduvai.ca\/?p=46753"},"modified":"2019-06-19T09:08:55","modified_gmt":"2019-06-19T14:08:55","slug":"draghi-punts-trump-grunts-gold-bunts","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=46753","title":{"rendered":"Draghi Punts, Trump Grunts, Gold Bunts"},"content":{"rendered":"\n

Draghi Punts, Trump Grunts, Gold Bunts<\/a><\/h3>\n\n\n\n
\"ecb-draghi-failure\"\/<\/figure>\n\n\n\n

For months now the markets have been in denial that ECB President Mario Draghi has any answers to the Euro-zone\u2019s problems. Today\u2019s statement confirms what anyone with eyes to see has been saying.<\/p>\n\n\n\n

There is no Plan B.<\/p>\n\n\n\n

Draghi started the year saying he would end his various QE programs and by June he\u2019s not only put them back on the table (New TLTRO in September) but has now opened up the possibility of taking rates lower<\/a>.<\/p>\n\n\n\n

Draghi told an ECB conference in Sintra, Portugal, that \u201cfurther cuts in policy rates\u2026 remain part of our tools.<\/strong>\u201d He added that there was \u201cconsiderable headroom\u201d to re-start bond purchases, which inject newly created money into the financial system in the hope of boosting lending and economic activity. <\/p><\/blockquote>\n\n\n\n

Draghi has been exposed as swimming naked, as Warren Buffet would put it.<\/p>\n\n\n\n

The fun part is that Draghi used the cover of Trump\u2019s trade war with everyone to justify a policy that was inevitable anyway.<\/p>\n\n\n\n

In response, President Trump piled on accusing Draghi of being a currency manipulator. And then announced his upcoming meeting with Chinese Premier Xi Jinping to hammer out a trade deal.<\/p>\n\n\n\n

But, as I\u2019ve pointed out in the past,<\/a> Trump doesn\u2019t have a serious offer on the table for China. <\/p>\n\n\n\n

Trump backed himself into a corner with China, essentially demanding it give the U.S. ultimate say over its fiscal, monetary and trade policy.<\/p>

The Chinese aren\u2019t going to agree to that any more than the Palestinians are going to agree to a Palestinian State in name only, administered like a Native American reservation by Israel.<\/p>

Lebanon is not going to accede to Pompeo\u2019s demands to remove Hezbollah from its government. North Korea isn\u2019t going to give up its nukes so the U.S. will allow it to trade with dollars. Negotiations with Trump are nothing of the sort.<\/p><\/blockquote>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Draghi Punts, Trump Grunts, Gold Bunts For months now the markets have been in denial that ECB President Mario Draghi has any answers to the Euro-zone\u2019s problems. Today\u2019s statement confirms what anyone with eyes to see has been saying. There is no Plan B. Draghi started the year saying he would end his various QE […]<\/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":[282,21273,805],"class_list":["post-46753","post","type-post","status-publish","format-standard","hentry","category-economics","tag-european-central-bank","tag-gold-goats-and-guns","tag-trade"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46753","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=46753"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46753\/revisions"}],"predecessor-version":[{"id":46754,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46753\/revisions\/46754"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}