The Euro elephant had settled on the toilet a year ago. But it ran out of paper and is insisting on more 3-ply Euros, pulped from the remaining wealth of Europe and other countries silly enough to throw real money its way via the IMF.
English-language media pay scant regard to telling people why there’s an elephant on the toilet and that it’s flushing Euros down the drain. EU Referendum writes:
It is hardly a secret that, with one exception, I have lost confidence in the British media and am relying more on the German press for reporting on the eurocrisis.
And here, Die Welt does not disappoint, dismissing Draghi’s press conference yesterday as: “Not much more than rhetoric”. The ECB had no big wad of money on the table and Draghi did not deliver – at least not yet.
The point, as we well know, is multiple commentators have remarked that European law has been stretched to its limits. Thus, the ECB is already at the limit of is power and if it is restricted to its mandate, then it has nothing to offer which will help the current crisis.
(Read all at the link.)
The Euro elephant was born prematurely; in spite of the rules under which it was supposed implemented; and in the full knowledge that almost all member countries had fudged their books in order to be eligible. Some had professional help (and in German) from Goldman-Sachs to make themselves look worthy. That was news in 2010. G-S received around $300 million for their help to Greece which included arranging fictional loans with several merchant banks to “balance” Greece’s budget. The offspring Euro elephant with inevitable, congenital defects including a large number of fundamental orifices, is now permanently on the toilet, rapidly running out of Euros to wipe its bum.
No surprise to learn that the current President of the ECB Mario Draghi was a chairman and managing director of Goldman-Sachs. (Linked article in German. See also Wikipedia.) Draghi should be asked if he sees his role as one of perpetuating benefits to the financial markets over the interests of the people (in German). Draghi’s advertised intervention is to print more 3-ply for the elephant, not even to undertake corrective surgery to close several of the elephant’s orifices.
Australia’s Treasurer and part-time paper pulp supplier, Wayne Swan reckons that $7,000,000,000 is a “very small” contribution to the IMF’s global collection for the “poor” elephant.