More Please Sir

Mario Draghi was the Governor of the Bank of Italy from December 2005 until October 2011, one of the worst indebted countries within Europe with Government Debt – to – GDP at north of 130%.

In November 2011 he was appointed as the President of the ECB for an 8-year term, with a mandate of financial stability and an inflation target, CPI that is, of 2% pa.

Although the ECB QE under Draghi’s predecessor, Trichet, had already started in 2009, it was dramatically increased under Draghi in January 2015 following his move to a Zero-Interest rate policy in September 2014.

Despite the “herculean,” attempts to stop DE-flation, by way of ECB actions, to which negative-interest rates were added in January, accompanied by yet another of Draghi’s bold statements, “There are no limits to how far we are willing to deploy our instruments within our mandate to achieve our objectives.”

Rather than repeat today’s ECB’s “fix” it is said that a picture tells a thousand words:

10 Mar 16 .

Just as Oliver Twist craved for more “gruel,” so the ECB is giving more “fuel,” aka debt, or trying too. However, has anyone noticed what it’s doing to European banks? Furthermore, just look at the CPI record since the blue vertical line, when Mario took-over the job.

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