"Even Jacques Delors, the 94-year-old former European Commission president and architect of both the post-Maastricht EU and the euro, made a rare public intervention, warning that the lack of solidarity in the face of the virus posed a ‘mortal danger’ to the EU."
"...it is not the task of a central bank to deal with insolvencies."
"Germany is the ultimate backstop for the EU. ... German sovereign bonds are beginning to break down."
"Today, the ECB is powerless to stop this. They don’t have the tools nor the expertise. And they won’t even after they get the reforms they believe they need. It is bankrupt now and it will need external help to survive."
"Coronavirus isn’t the issue. ... It’s its effect that matters."
When the debt bubble pops so will other liabilities like the $1.5 quadrillion of derivatives.
PRINCETON – Mario Draghi risks deepening the eurozone’s problems in the final weeks of his eight-year term as president of the European Central Bank. He has promised that the ECB will reduce interest rates further to spur the eurozone economy. But policymakers have room for only modest rate cuts, which will do little to boost growth – and will put potentially intolerable pressure on the eurozone’s fragile banks. Back in June, Draghi said that the ECB was preparing a new dose of stimulus, including further reductions of its policy interest rate and a renewal of quantitative easing (QE) through purchases of government bonds. And…