Davos: Mario Draghi, The Man Who Would Save Europe

  • Share
  • Read Later
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 resulting turbulence will have a nasty taint of familiarity for Europeans of a certain age, the ECB chief among them. Draghi grew up with a ringside seat to the chaos of postwar Europe. The son of a commercial banker, Draghi says “there was an economic ingredient in all of the discussions we were having [at home].” After his parents died while he was still a teenager, inflation shrank his inheritance.

Like Europe, Draghi recovered from that low point. Luca Cordero di Montezemolo, now chairman of sports-car maker Ferrari, remembers his then classmate at Rome’s Istituto Massimiliano Massimo, a Jesuit school, as “very calm, very well dressed, always polite — his hair was always perfect.” Having already acquired the demeanor of a central banker, Draghi set about polishing the credentials that put him in good stead to be one, completing his doctoral studies in economics at the Massachusetts Institute of Technology in the 1970s, around the same time Fed chairman Ben Bernanke was also studying there. “The U.S. was a much bigger and exciting place to be at that time [than Europe],” says Draghi.

(MORE: ‘Super Mario’ Rides to the Euro’s Rescue)

He would later return to the U.S. as an executive director at the World Bank. He has an “international mentality” uncommon among his compatriots, according to Montezemolo, who adds, “The main problem today with the leading class in Italy is that there are few people who can be comfortable if they go to Washington, to Brussels, to Beijing, to São Paulo.”

That international mentality has done nothing to mitigate Draghi’s devotion to the single currency, which he helped forge, first as director general of the Italian Treasury — where he led the Italian delegation to the 1991 conference that produced the Maastricht Treaty, in turn laying the groundwork for the formation of the euro — and from 2006 to 2011 as governor of the Bank of Italy. When the euro teetered at the edge of the abyss, there may never have been any real likelihood of Draghi’s allowing himself to be confined by historical interpretations of the ECB remit to standing back and letting events take their course. “One needs to be at peace with one’s conscience,” he says. “If you are convinced something ought to be done, it must be done.”

With the same calm certitude, Draghi is now pushing for a more durable solution to Europe’s problems. Despite the limitations of his job, and unlikely though it may seem that our banker-bashing era should find in a top banker an avatar of credibility, Draghi appears to be in a better position than most national leaders to communicate — and be believed. And he leads a bank that operates independently and has the ability to print money. It is “the only properly functioning common European institution,” according to Johannes Müller, chief economist at DWS Investments in Frankfurt.

Situations Vacant One problem with democracy is that it often rewards good, honest politics with bad election results. Even as euro-zone leaders inch toward integration, they risk being turfed out of office. Italian Prime Minister Mario Monti, installed rather than elected in 2011 and thus free from the pressures of party politics, managed to stabilize his country’s shaky economy; he now trails the front runners in national elections scheduled to take place next month. Merkel, in contrast to many of her euro-zone counterparts riding high in opinion polls, seems likely to be re-elected when Germany votes later this year, but her business-friendly coalition partners face being tipped out of government. Political turbulence across the euro zone threatens new market turbulence, which could force Draghi to intervene again and again. Yet that’s all he can do. “[Draghi] needs to continue to stress that while the ECB can buy time for the euro zone, the institution cannot by itself deliver a sustainable solution,” says Mohamed El-Erian, CEO of fund-management giant PIMCO. “ECB intervention is a bridge, not a destination.”

(MORE: It’s Official: Eurozone Enters Second Recession In Three Years)

Some critics believe Draghi still could and should do more, for example, by buying government bonds in large quantities to bring down borrowing costs. The ECB “has to do everything to stabilize the markets,” says Peter Bofinger, a member of the German government’s Council of Economic Experts. “Most politicians have reached the limits of their room to maneuver. The only actor who can do something is the ECB. There is nobody left.”

Others complain that Draghi has already done too much. They say that by easing the pressure imposed on politicians by unsettled markets, Draghi has allowed them to backslide. Jens Weidmann, the Bundesbank’s president and representative on the ECB’s governing board, objected vociferously after Draghi’s “whatever it takes” pledge, telling the German newsmagazine Der Spiegel, “We should not underestimate the risk of central-bank financing becoming addictive like a drug.”

Draghi has nimbly outmaneuvered Weidmann. When the ECB council debated the scheme, the German’s was the sole dissenting vote. Draghi is skillful at building consensus and isolating opponents. In the words of a former official in the French government who collaborated closely with Draghi, he “works around opposition rather than confronting through collision.”

These skills and the passionate Europeanism that Draghi’s cool manner belies have catapulted him to a position of unexpected visibility. “Politicians appreciate recognition. I do not,” he says. “But it comes with the job, especially at this point in time, when the job becomes so crucial.” His powers are expanding too. In December, euro-zone countries agreed to form a common regulatory system for major banks — to be managed by the ECB. Integration, says Draghi, “is moving forward after many years when there was basically no progress at all.” Optimism is easier to believe when it comes from a man who has done so much to justify it; you could call it positive contagion. But until Europe’s politicians step up, not even Super Mario can guarantee a safe landing for the euro.

— with reporting by Bruce Crumley / Paris And Stephan Faris / Rome
MORE: Why It’s Time for Central Bankers to Say: ‘No More!’

  1. 1
  2. 2
  3. 3
  4. Next
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