‘More sooner, nothing later’says Draghi: what seems confusing today may confirm your worst fears tomorrow

Draghi, the hidden marigold

The two ‘surprises’ in SuperMario’s ECB offering today were nevertheless what The Slog predicted earlier. While we got more QE and lower rates, I did say that the eurozone’s central banker would send a thinly veiled message to member States saying “That’s yer lot” – and he also made that clear.

This sent the markets briefly all over the place, followed by reporting within hours across the board that used words like “backfired” and “fizzled out”. This is really nothing more than the usual triumph of reaction to news over analysis of ramifications.

Having dropped the main rate without using tiers (unexpected) sevenfold to -O.4%, and increased QE by €80bn a month (unexpected) Dragula offered more now. But in saying “we will not be cutting rates any further after that” (unexpected) he fulfilled what I suggested re ‘along the lines of “we must look to sovereign governments for new ideas about economic stimulation, the monetary toolbag being empty”’.

In the immediate to medium term, both the euro and gold will settle without too much movement….and the markets will (quite rightly) lose a little more faith in the Italian Rapscallion: but to think he worries about anyone’s faith is naive. He knew before today that his choices were little beyond lesser evils. They are only a stopgap: a year from now, we’ll look back on today’s balls as cultured pearls strewn before swine.

From here on, the only game in town is poker, and the only chips allowed are solid gold.

If you’re a sociopath (like, for example, Jeremy Hunt) it’s amazing how easily one can garner the sympathy vote by deliberately reducing your own choices. This allows one to emit such sanctimonious drivel as, “Under the circumstances, I have no choice but to…” and then follow it up with “I have done nothing wrong”: Lavabos me de manu mea, and all that.

Being some 500 times brighter than Jezzer, it seems to me Draghi is, in suggesting a eurogroupe change of strategy should be considered, ordering the pig to sing. The Brussels-am-Berlin snouts aren’t going to do that….least of all for a bloke they regard as the Beast of Bankfurt. We are back once again in the tiresome politics of Berlin v Frankfurt v Bundesbank v Paris: for the EU is, verily, a terminal mess.

This is just part of the preface to central bank opportunistic gold buying off-market and in secret. If you like, a fusion of the ideal Debt Jubilee with the malign banksters’ bid for ultimate (and permanent) hegemony. And this is how they hope it will work….given a chance.

First, things will get slowly worse economically, and fiscal debt contagion will – in trying to hide that – proliferate quite quickly.

Second, the already apparent amalgamation of bourses will accelerate – the latest Nasdaq move being part of the process – until such time as any manipulation in any sector will be the work of, literally, a handful of people.

Third, private gold trading will be stopped as part of “emergency measures” (the more social violence by this point, the better) and then central banks will be revealed at last as the heroic revaluers of gold for the purpose of paying off public debt.

But not private debt, obviously: for where would the banks be without that?

Do I think it will come to pass? No: economically, it is a ridiculous idea; and events – both those appearing as ever from left-field, and the predictable ones turning out impossible to control – will show up the élites’ ignorance when it comes to the psychology of anthropology.

However, along the way the Dark Side will easily enlist the media, the political volunteers, and the passive acceptors.

It will be up to us, the NVEs, to raise awareness of what’s going on.

Recently at The Slog: rearrange these well-known letters – CFUK