Tag Archives: mario draghi

Draghi’s Doom Loop(s): More than just the euthanasia of the rentiers

Posted on April 7, 2015 by Devin Smith | Comments Off

By Rob Parenteau

The recently adopted QE approach by the ECB, in concert with the negative deposit policy rate (NDPR) introduced last summer, has set off a number of nested disequilibrium dynamics that may unwittingly introduce a material increase in systemic risk for the eurozone, and perhaps beyond. Lord Keynes anticipated what he termed ”euthanasia of the rentiers”, as he expected active monetary policy would be successful in reducing long-term interest rates, and the share of the population living off of bond coupons would eventually just wither away. By way of contrast, if the following assessment is correct, Draghi may have signed a mutually assisted suicide pact with finanzkapital in the eurozone.

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Posted in rob parenteau

Tagged ECB, mario draghi, QE

The ECB and the NYT’s Obsession with Talking about Deflation

Posted on December 5, 2014 by William Black | Comments Off

By William K. Black
Kansas City, MO: December 4, 2014

In the last two days, the New York Times’ website has published a blizzard of six article about deflation, several of them focusing on the European Central Bank (ECB). Collectively, these article mention the word “deflation” seven times and the word “inflation” 75 times. Collectively, the same articles contain the word “unemployment” 10 times and the word “unemployed” zero times. “Unemployment” is the word one uses to provide a statistic. “Unemployed” is the word one uses to discuss who is harmed and how they are harmed because they lose their ability to find a job.

The word “demand” is used only twice and both usages are in the context of oil prices rather than the eurozone’s grossly inadequate demand that already inflicted a second, gratuitous Great Recession and threatens to cause a third. The word “austerity” – the form of economic malpractice akin to bleeding a patient to make him healthy – is mentioned only twice and solely in the article on the Bank of England.

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Posted in William K. Black

Tagged deflation, ECB, mario draghi, nyt

Dr. Draghi Prescribes a Dose of Deflation for Spain as his latest Quack Cure

Posted on April 1, 2014 by William Black | 4 comments

By William K. Black

I posted an article earlier today on the demented memes about eurozone deflation U.S. financial journalists parrot after talking to Brussels’ troika-trolls. That article used the latest AP story to illustrate my points.

I promised a second installment that used a New York Times article (not sourced to AP) that was posted last night to illustrate the meme. The NYT article is simultaneously more complex and more alarmingly analytically awful than the AP piece.

This morning brought two April Fools’ Day articles about France and Italy that are also about the gratuitous second Great Recession (in the core) and the second Great Depression (in Spain, Italy, and Greece) inflicted by the troika’s infamous austerity dogmas. This article discusses one sentence from last night’s NYT piece that notes the position on deflation of the head of the European Central Bank (Mario Draghi). The NYT article misses the significance of the passage. I show how the passage, particularly when read in conjunction with quotations from Draghi’s fellow troika-trolls in the articles about France and Italy, reveals the troika’s fanatical devotion to failed dogmas and the clueless nature of U.S. financial journalists covering the eurozone who continue to treat the trolls like savants.

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Posted in William K. Black

Tagged Austerity Doctrine, ECB, France, Italy, mario draghi, spain

Spain, Italy, and France: Economic Failures that Will Soon be Political Failures

Posted on February 13, 2014 by Devin Smith | 16 comments

By William K. Black

The troika has consigned one-third of the Eurozone to a gratuitous Great Depression

I have written several articles recently describing Spain’s continuing Great Depression levels of unemployment and the absurdity of the troika’s policies with regard to the “threat” presented by “deflation.” The troika consists of the European Commission, the European Central Bank (ECB), and the International Monetary Fund (IMF).

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