Draghi-k ez du ezer ikasi! (2)

Ikus Draghi jauna: arren, atzera, lan egitera!

Segida:

(a) In Redbook retail sales, PMI manufacturing, ISM manufacturing, Construction spending, Draghi comment¹

As the carpenter said about his piece of wood, “No matter how much I cut off it’s still too short”:

DRAGHI SAYS EURO AREA INFLATION DYNAMICS CONTINUE TO BE WEAKER THAN EXPECTED

DRAGHI SAYS THERE ARE NO LIMITS TO HOW FAR WE ARE WILLING TO DEPLOY OUR INSTRUMENTS WITHIN OUR MANDATE TO ACHIEVE OUR OBJECTIVE OF INFLATION RATES BELOW, BUT CLOSE TO, 2% OVER THE MEDIUM TERM

(b) Interes tasak

Kinsley Manning ‏@kinsley_manning mar. 1

@wbmosler long time,first time, can you point me in the right direction re: negative interest rates?

Warren B. Mosler ‏@wbmosler

@kinsley_manning Start here thanks http://moslereconomics.com/wp-content/graphs/2009/07/natural-rate-is-zero.PDF …
2016 mar. 1

Hortaz, ikus The Natural Rate of Interest Is Zero (http://moslereconomics.com/wp-content/graphs/2009/07/natural-rate-is-zero.PDF)

Halaber, ikus Revisiting the Liberal Agenda (http://www.cfeps.org/pubs/sr/sr0402/sr0402.html)

Draghis Bazooka Is Loaded With Blanks (http://www.zerohedge.com/news/2016-03-05/draghis-bazooka-loaded-blanks )

“Desperate to hold the EU system together, in late July 2012, ECB head Mario Draghi walked out on stage at an investment conference in London, and promised to do “whatever it takes” to save the Euro and the EU banking system.

The whole thing was a giant bluff. We know from insiders who were present at the time that Draghi’s comments were “off the cuff” and that in fact he had “no real plan” at the time he said it.

Still, the investment herd bought the hype, piling back into EU Sovereign nation bonds and stocks. Despite the fact nothing fundamental had changed for the EU banking system, within six months EU Financial Ministers were proclaiming, “the worst was over.”

Sadly they were incorrect. And none of them have implemented structural reform to insure that the next round of the Crisis will be contained.

(…)

Since Draghi’s “whatever it takes” comment in July 2012, the EU has launched Negative Interest Rate Policy, or NIRP, (June 2014), cut rates deeper into NIRP (September 2014), launched QE (January 2015), cut rates even deeper into NIRP (December 2015) and extended its QE program through March 2017 (December 2015).

Throughout this period, the EU’s inflation rate has been on a steady decline. Indeed, despite the ECB launching both NIRP and QE, the EU moved into deflation in early 2015. It’s since barely flat-lined at 0%, abetted by even deeper NIRP cuts and extending QE through March 2017.

And just last week it collapsed back into negative again. (…)

And so, after having discovered that deeper NIRP cuts and an extension of QE failed to get the desired market reaction, Draghi is gaming the markets for something big next week. Once again he’s promising that he can get the EU to a 2% inflation rate.

Wake up world, the EU hasn’t experienced 2% inflation since BEFORE the Crisis erupted in earnest in 2012. Three NIRP cuts and over €1 trillion in QE later, the EU is on the verge of deflation again.

The EU Crisis will began anew within the next six weeks. When it does, Draghi won’t be able to rein it in. His policies have already failed pathetically for over THREE years straight. And at this point he’s virtually out of ammo to combat another downturn.”

(1 trilioi amerikarra = 1 bilioi europarra)

(d) (In https://twitter.com/wbmosler/status/706605948266151936)

Andrea Terzi ‏@ndrea_terzi

The belief that you can create jobs without creating new debt underscores a serious conceptual fault (forthcoming)

2016 mar. 6