Friday , August 14 2020
Home / Tag Archives: german schaetze

Tag Archives: german schaetze

Schaetze To That

When Mario Draghi sat down for his scheduled press conference on April 4, 2012, it was a key moment and he knew it. The ECB had finished up the second of its “massive” LTRO auctions only weeks before. Draghi was still relatively new to the job, having taken over for Jean-Claude Trichet the prior November amidst substantial turmoil. The non-standard “flood of liquidity” was an about-face from his predecessor (who had been raising rates in 2011 before the wheels fell off), an early test of his...

Read More »

Real Liquidity Cuts Across Many Boundaries; So Does The Lack of It

Things that happen in one place happen in every place. That’s been the second hardest thing to get people to realize. The first is that central banks are not central. And the reason they aren’t is because of this other factor. It truly is a global system and it’s made that way by its very nature. Credit-based money means that wherever banks operate within it, they transport systemic conditions with them. There’s a lot which is packed into the word offshore. Coming up again on another August...

Read More »

As Europe Keeps Falling, The Implications For Europe And Everyone Else

In late March, as global pessimism was renewed in the world’s bond markets, ECB President Mario Draghi appeared as he always does to urge optimism. Yes, Europe’s economy in particular didn’t finish 2018 as he had been expecting. But a soft patch, Draghi said, wouldn’t necessarily “foreshadow [a] serious slump.” The question on the minds of bond investors is, how would he know? That’s ultimately the problem with botching globally synchronized growth. And he has no one else to blame. In hyping...

Read More »