Draghi put for blogg

If there is one single event that could derail the euro experiment it is the German Federal Constitutional Court ruling on the European Stability Mechanism (ESM) and Outright Market Transactions (OMT). We will take you through the different legal arguments used on both sides of the aisle, but first you need to understand the importance…

As is clear to all with half a brain the production of un-backed fiat money distorts the economic system. Simply told, when an entity in society is given monopoly to manufacture medium of exchange at its own discretion they will harness this power. Slowly at first, unsure about its effects, but always testing the limits…

1)   There are two processes ongoing at the same time a)    Budget resolution – cause of current shutdown b)    Debt ceiling – potential leading to US default 2)   The two sides have reached an impasse a)    Republicans believe they can get concessions from Obama and the Democrats; defund/delay Obamacare and further cut to projected spending…

When the Europeans published their upbeat retail sale report last week we asked a rather rhetorical question; where do you think all those ECB-money ends up? Given Draghi`s broken monetary transmission mechanism is should come as no surprise that most of it ends up in the north. As simple chart depicting a rebased retail sale…