Posted Dec 5, 2014 by Martin Armstrong
Why the bounce in the Euro? There is resistance appearing within the Governing Council that is far larger than previously believed. There is no majority within the 6 member Executive Board raising some hope that massive flooding of euros may subside. Lautenschläger, Mersch and Coeure are opposing Draghi’s plans to blow-out the money supply. Other council members including Weidmann are also opposed but in the end a “clear majority” supported Draghi’s course.
Former Goldman Sachs’ Draghi is really clueless. Europe cannot be saved with just flooding the economy with money. There has to be reform and a drastic lowering of taxes. Flooding the system with money means little if at the same time you are extracting a large portion of that new money with higher taxes. This is a net sum game and we cannot look at just the printing machine.