Davos: Mario Draghi, The Man Who Would Save Europe

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OLAF BLECKER FOR TIME

"One needs to be at peace with one's conscience. If you are convinced something ought to be done, it must be done."

The phrase recalls the old wisecrack that heaven is a place where the bankers are German and the cooks are Italian, whereas in hell those roles are reversed. Draghi laughs when reminded of the joke, but the world can be grateful that he’s demonstrated more than a soupçon of creativity along with bankerly prudence. Trichet, intent on warding off the bogeyman of inflation, hiked the bank’s benchmark interest rate even as euro-zone economies flatlined. Just two days after taking office, Draghi demonstrated a new boldness in approach, lowering the rate in an effort to stimulate lending and growth. The following month, he instituted a lending program for euro-zone banks to ease the credit crunch. But although these measures provided welcome relief for European financial markets, this was just tinkering around the edges of the deeper-rooted problem that saw investors betting on a Spanish bailout and forcing Italy to borrow at prohibitive rates. That problem is rooted in politics. Politicians not only failed to tackle it; bickering, fudging and kicking urgent decisions into the long grass, they are the problem, or an integral part of it.

The euro, launched in 1999, was a political as well as an economic initiative, conceived without the institutions and policies to properly govern it. Governments retained the individual authority to spend and borrow even though they all used the same currency. Over time, as more countries joined, monetary union strained to contain economies of widely varying levels of competitiveness, from solid Germany to tumultuous Greece, and their uncoordinated economic policies made them diverge even further. Without built-in exit mechanisms, any breakup threatens to be traumatic. There is broad agreement that greater integration offers the only possibility for happy cohabitation. There is little agreement on the timing, costs and conditions involved in getting to this blessed state.

(MORE: Too European To Fail? New EU Banking Safety Net Takes Shape)

Last year, in the absence of progress, the markets threatened to blow a set of doors into the construct. The euro zone had begun to slide into its second recession since the U.S. subprime crisis. Markets were understandably skeptical about the political will among creditor countries to keep the rickety euro afloat as Germany, the biggest creditor, vacillated over the way forward, with rifts opening up in its governing coalition and within Chancellor Angela Merkel’s own party, amid challenges to the legality of its bailout undertakings and eroding public support for the whole enterprise. Nor was dynamic political leadership on offer from other quarters.

Draghi waited and watched, concerned to avoid any action that might deter the euro zone’s weakest members from overhauling the systems and structures that got them into unsustainable debt in the first place. But by midyear, yields on the bonds issued by cash-strapped euro-zone governments — the interest rates they have to pay to attract investors — were climbing steeply on fears that the countries might default. Spain’s spiked above 7%, the threshold at which Greece, Ireland and Portugal had been forced to give up borrowing on the markets, instead taking bailouts from the International Monetary Fund and the E.U. “The perception was that the rest of the world was having doubts about the continuing existence of the euro,” says Draghi.

As vultures circled, he saw no option but to issue his resonant “whatever it takes” pledge, an undertaking that went far beyond anything offered by his predecessors. “The tone came out strong,” he says, “and the tone came out to produce in the market the consequence that one would want.” That consequence — breathing space — didn’t cost a euro, not even after Draghi fleshed out the details in September, unveiling a scheme to buy an unlimited number of certain types of bonds from struggling countries, provided they sign up for a stringent reform program agreed on by the E.U. No country has yet availed itself of this.

Sovereign-bond yields have continued to recede and remain at tolerable levels; an auction on the morning of the ECB’s Jan. 10 press conference saw yields on Spain’s benchmark 10-year bonds falling below 5%. The ECB “has become a more active part of the solution” to the crisis, says Michael Schubert, Commerzbank’s ECB watcher in Frankfurt. “Draghi is a very important part of that new direction.” In the absence of clarion leadership from other quarters, Europe’s central banker has taken the wheel.

(PHOTOS: The New Castles of Spain: Victims of the Euro Crisis)

War and Peace On Jan. 10 a flash mob of musicians and singers, organized by Spanish radio show Carne Cruda 2.0, invaded a job center, performing the Beatles’ optimistic anthem “Here Comes the Sun” to people queuing for the scant work available. Manifestations of swelling discontent at the price of staying in the euro often prove less benign, with demonstrations across austerity-hit countries in some cases turning into riots. Opinion polls even in Europe’s best-performing economies show declining faith in the E.U. and the euro. Populist parties playing on these sentiments, often linking them to nationalist, anti-immigrant messages, have witnessed upticks in support in many corners of the continent.

Mainstream politicians appear as apt to borrow from populists as to challenge their views, and with faith in the political classes also at rock bottom in most countries, selling the idea that what is needed is more Europe, not less, is far from easy.

Closer European cooperation has certainly delivered some economic benefits, as Draghi is quick to point out. “The very significant growth that Europe had in the 1950s and 1960s was actually caused by the beginning of the European effort. Europe brought prosperity, wealth, jobs,” he says. It’s harder to make the same argument for the first decade of the 21st century as the debt crisis reveals some of the prosperity as a sham and jobs melt away.

MORE: Is the E.U. Nearing a Landmark Banking Deal?

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8 comments
jackloach69
jackloach69

Swiss Bank Accounts.


Is your monies safe in these accounts ---- definitely NOT.

Would you get your money back if every body decided to withdraw all their accounts – NO WAY.

Economic Experts say that there would only enough money to repay 50% of their clients.

Are you going to be in the 50% --- that loose your money.-- Get it out NOW.


2012 -- - June. -- Published in Anglo INFO .Geneva.--- USA Trust Fund Investors were sent false and fraudulent documents by Pictet Bank.Switzerland. in order to collect large fees. ( Like MADOFF) ---Even after the SEC in the USA uncovered the fraud Pictet continued to charge fees and drain whatever was left in these accounts. Estimated that $90,000,000 million lost in this Pictet Ponzi scheme.


2012 - - - July. -- De – Spiegel. -- states – Pictet Bank uses a letterbox company in

Panama and a tax loophole involving investments in London to gain

German millionaires as clients.

2012 - - - August ---- German Opposition Leader accuses Swiss Banks of "organised crime."


All the fines that crooked Swiss banks have incurred in the last few years exceeds £15.Billion.

It is also calculated that the secrecy " agreements" with regards to tax evation by their clients will cost the banks another £45 Billion.


The banks are panicking --- the are quickly restructuring their banks ---- from partnerships --

to " LIMITED COMPANIES." ----- this will probably mean that in the future --- they could

pay you only 10% of your monies " if you are one of the lucky ones" ---- and it be legal.

Elena17
Elena17

6 pages (+ the cover !) about Mario Draghi in the 01/28 TIME issue, and there is NOT ONE WORD mentionning GOLDMAN SACHS.

Why?

GeorgiBenevolenet
GeorgiBenevolenet

EC аnd ECB mind-control_ mаny politiciаns аnd business people in Europe. They
mаnipulаte finаnciаl mаrkets, require high interest rаte, require low-price
privаtizаtion.
This is done with smаll implаnts in the heаd (sometimes involuntаry)аnd
wireless technology, Europeаn Pаrliаment cаlls it “converging technology”. I studied аt CEU - sponsored by Soros, аnd Rostowski, the
finаnciаl minister of Polаnd wаs teаching there (he is аlso mind_ contolled), Bokrosh – Europeаn Pаrliаment аs well.
Behind Soros, аctuаlly аre EC аnd ECB - the owners аnd beneficiаries of the
technology. It is not done for security, becаuse I worked for the Bulgаriаn_
Nаtionаl Bаnk аnd I wаs threаtened with this technology to mаke credit
expаnsion for the bаnk cаrtel (CEU is teаching the centrаl bаnks in CEE this
аctuаlly). From BNB the mind-controlled on_ Telekom_ Austriа_ net_ аre Stаty Stаtev, Kаlin Hristov, Mаrielа Nenovа, аndrey Vаssilev, Rosen Rozenov, Grigor Stoevsky, Kristinа Kаrаgyozovа, Tzvetаn Tzаlinsky lost 20 bln аt stock exchаnge, 10 bln bаd loаns, tens of bilions аt housing mаrket.
I аlso met Pаpаdemos аt а аustriаn Centrаl Bаnk Conference, while he wаs in
ECB, аnd I believe he is аlso mind-controlled. Thа sаme is vаlid for Spаin, Itаly, Greece.

jackloach69
jackloach69

Update --- Jan.22nd 2013.


Pictet & Cie Bank ---- List of Crimes.

1996 ----- F.S.A--- Breach in London.


2003 ----- F.S.A. -- States rogues operating in Pictet's London office. Ivan Pictet

states that documents were forgeries but were later proved to be genuine in

the British Courts. He had documents destroyed in their London office --

hoping to hide the crimes.


2007 .- - - The Securities and Ecxhange Surveillance issued a recommendation

that the Prime Minister and The Commissioner of the FSA to take disciplinary action against Pictet Asset Management – Japan Ltd.


2008 .-- Dec. - Pictet Bank state - " We have never chosen any funds linked to Madoff.


2011 - - - Madoff Trustees sue Pictet & Cie. Bank for $156 Million.


2011- - - Pictet & Cie Bank abetted a Bribery Scheme - Oil company sues Pictet for $350Million


2012 - - - April – Geneva Bank Pictet used in Offshore Tax Scheme. ( USA.)


2012 -- - June. -- Published in Anglo INFO .Geneva.--- USA Trust Fund Investors were sent false and fraudulent documents by Pictet Bank in order to collect large fees. ( Like MADOFF)

Even after the SEC in the USA uncovered the fraud Pictet continued to charge fees and drain whatever was left in these accounts. Estimated that $90 million lost in this Pictet Ponzi scheme.


2012 - - - July. -- De – Spiegel. -- states – Pictet Bank uses a letterbox company in

Panama and a tax loophole involving investments in London to gain

German millionaires as clients.

2012 - - - August ---- German Opposition Leader accuses Swiss Banks of "organised crime."


2013 --- Jan.--- Swiss MP' table motion to freeze Tiab Mahmud's assets of " criminal origins"

held in Swiss banks – $18 million held in 5 accounts at Pictet & Cie. Bank. Bahamas.


Ironically the Pictet & Cie.Bank partners are bigger criminals than the criminals who have accounts in the their bank.


Update . Jan22nd.2013..



The following sent to - - - - 312- - Lords - - - - - - House of Lords. ( Inc. Lord Myners.)

The following sent to - - - - 649 - - M.P.'s - - - - - House of Commons.


SWISS BANK PARTNERS IN CRIMES.


Pictet & Cie Bank.


Ivan Pictet.

Charles Pictet.

Nicolas Pictet.

Jacques de Saussure.

Jean – Francois Demole.

Renaud de Planta.

Philippe Bertherat..


Pictet & Cie.- claim they are the “Rolls Royce”of Swiss banks.


Swiss Banks or more correctly Swizz banks.


Swizz. ---- “ a great disappointment.” or a “ fraud.”


Fraud.---“ an intentional deception or dishonesty.”— “a crime.”


Crime. ---“ an act committed or omitted in violation of a law.”


Serious Crimes .


Conspiring to pervert the Course of Justice.

Perverting the Course of Justice.

Contempt of Court.



Pictet & Cie Bank –Partners –(1996—2013)---guilty

frparlentauxfr
frparlentauxfr

I remember the comment the time cover with Rubin, Greenspan, and Summers, the committe to save the World... just sayingl... Actually if Draghi were to use his put, he might end up with a quasi fiscal deficit at teh ECB and force Germany to exit since the Spanish banks will ahve to ask interest rates from ECB higher than what the ECB would collect on sovereign debt = fiscal deficit= hyperinflation. of course Germany would exit before that happens... 

http://www.google.com/imgres?q=rubin+greenspan+summers&um=1&hl=en&sa=N&tbo=d&biw=939&bih=577&tbm=isch&tbnid=Jzyt6jEzqhUQ8M:&imgrefurl=http://www.time.com/time/covers/0,16641,19990215,00.html&docid=CmNJfaBRy_kptM&imgurl=http://img.timeinc.net/time/magazine/archive/covers/1999/1101990215_400.jpg&w=400&h=527&ei=C1r4UMH5H8ir0AG1xICYAg&zoom=1&iact=hc&vpx=174&vpy=100&dur=2941&hovh=258&hovw=196&tx=79&ty=94&sig=107632025883238869504&page=1&tbnh=145&tbnw=106&start=0&ndsp=15&ved=1t:429,r:1,s:0,i:87