More Cleptocrats Backing Cleptocrat Plan! Plus Rare Video Of Young Draghi!!!


BERLIN (Reuters) – European Central Bank Chief Mario Draghi backed a proposal by German Finance Minister Wolfgang Schaeuble to radically expand the powers of the European Union’s monetary affairs commissioner giving Brussels greater control over member states budgets.

Draghi’s public support for the proposals is a boost for Schaeuble’s plan but such reform would require changes to EU treaties, something that would need Britain – which has been skeptical of greater European integration – to acquiesce to unless a separate euro zone treaty is drawn up.

“I explicitly support this proposal,” Draghi told Der Spiegel magazine published on Sunday.

“I am certain: if we want to re-establish trust in the euro zone, countries must pass a part of their sovereignty to the European level,” Draghi said.

Schaeuble wants the role of the economic and monetary affairs commissioner, dubbed the “currency commissioner” in Germany, to be modeled along the lines of the EU’s competition commissioner, the only commissioner who can make legally-binding decisions. His plan has received a mixed welcome.

Addressing fears that the ECB’s decision to buy an unlimited amount of debt from struggling member states could lead to inflation and cost taxpayers money, Draghi said.

“To the contrary: so far we have even made profits from our bond purchases, which then went to national central banks,” Draghi said, and added this would remain the case of governments in southern Europe continued their reforms of recent months.

“One thing is clear: if the governments in southern Europe continue with the successful implementation of policy reforms seen in the last few months, German taxpayers will make a profit from our purchases. There is no better protection against the euro crisis than successful structural reforms in southern Europe.”

Draghi defended his bond-buying plan in front of Bundestag members on Wednesday, telling skeptical German lawmakers that fears of illegal government funding or higher inflation were misplaced.

Unless the ECB has sold these bonds, no profit has been made.  Nor will any profit be made.  I have no idea what world Draghi is living in when he talks about successful reforms.  Can anyone name one?

This was stolen from Dan Mitchell’s site.  There was a misidentification.  Mitchell thought it was Bernanke, it’s easy to get the two confused.  But, this is rare video footage of Draghi as a little person.

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5 Responses to More Cleptocrats Backing Cleptocrat Plan! Plus Rare Video Of Young Draghi!!!

  1. DirkH says:

    “Unless the ECB has sold these bonds, no profit has been made. ”

    There was a first round of Greek bond buying by the ECB when in 2009 the interest rates of Southern and Northern Euro countries diverged gravely. Before the official rescue packages by EFSF and IMF. I think the ECB offloaded those bonds when those new creditors stepped in.

    That all happened before the first Greek haircut. After that, the ECB has not bought Bonds directly – their announced OMT (Other monetary transactions) bond buying, also called “The Bazooka” (I would prefer to call it “Die Panzerfaust” but maybe the Greek would misunderstand that) – has not been enacted by now.

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