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wonderpup

The Man From Goldman Sachs Is Not Happy

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Reading this quote from Mario Draghi should have been shocking- but somehow was not;

The ECB president on Saturday said his calls were appropriate in a monetary union where growth prospects had been badly damaged by governments’ resistance to economic reforms. Mr Draghi said it was the central bank’s responsibility to comment if governments’ inaction on structural reforms was creating divergence in growth and unemployment within the eurozone, which undermined the existence of the currency area. “In a monetary union you can’t afford to have large and increasing structural divergences,” the ECB president said. “They tend to become explosive.”

(emphasis mine)

When did it become the role of ECB to comment on the political choices made by member state governments? The unexamined premise here is that 'structural reform' is some kind of value neutral concept-like gravity- in which choices are determined by some kind of natural law.

Have Draghi and co drunk so deeply of the neo liberal elixir that they can no longer discriminate between theoretical and highly contentious models of macro economics and empirical natural phenomena? (I suspect the answer is yes)

There is a hubris here that is all the more worrying because it seems largely unconscious. Yet when we look at the outcome of 'structural reform' in Greece we do not see the predicted recovery of the economy- we see a deflationary vortex- so even where their writ has run the result has been failure.

Can you imagine the outcome if Mark Carney began to talk about the UK Government's ' resistance to economic reforms.'??? We would think the man had succumbed to delusions of grandeur- he would not dare to intervene in policy in this way.

The EU will expire with or without us I believe- and it is upon the rocks of this kind of arrogance the ship will founder.

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Reading this quote from Mario Draghi should have been shocking- but somehow was not;

The ECB president on Saturday said his calls were appropriate in a monetary union where growth prospects had been badly damaged by governments’ resistance to economic reforms. Mr Draghi said it was the central bank’s responsibility to comment if governments’ inaction on structural reforms was creating divergence in growth and unemployment within the eurozone, which undermined the existence of the currency area. “In a monetary union you can’t afford to have large and increasing structural divergences,” the ECB president said. “They tend to become explosive.”

(emphasis mine)

When did it become the role of ECB to comment on the political choices made by member state governments? The unexamined premise here is that 'structural reform' is some kind of value neutral concept-like gravity- in which choices are determined by some kind of natural law.

Have Draghi and co drunk so deeply of the neo liberal elixir that they can no longer discriminate between theoretical and highly contentious models of macro economics and empirical natural phenomena? (I suspect the answer is yes)

There is a hubris here that is all the more worrying because it seems largely unconscious. Yet when we look at the outcome of 'structural reform' in Greece we do not see the predicted recovery of the economy- we see a deflationary vortex- so even where their writ has run the result has been failure.

Can you imagine the outcome if Mark Carney began to talk about the UK Government's ' resistance to economic reforms.'??? We would think the man had succumbed to delusions of grandeur- he would not dare to intervene in policy in this way.

The EU will expire with or without us I believe- and it is upon the rocks of this kind of arrogance the ship will founder.

but carney is ex goldman sachs too.

they are just going to have to get over the fact that the people of europe/usa etc do not like the direction they are taking us,and if they do not clean their act up,there is going to be trouble.

our sovereignty is not for sale.

Edited by oracle

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Reading this quote from Mario Draghi should have been shocking- but somehow was not;

The ECB president on Saturday said his calls were appropriate in a monetary union where growth prospects had been badly damaged by governments’ resistance to economic reforms. Mr Draghi said it was the central bank’s responsibility to comment if governments’ inaction on structural reforms was creating divergence in growth and unemployment within the eurozone, which undermined the existence of the currency area. “In a monetary union you can’t afford to have large and increasing structural divergences,” the ECB president said. “They tend to become explosive.”

(emphasis mine)

When did it become the role of ECB to comment on the political choices made by member state governments? The unexamined premise here is that 'structural reform' is some kind of value neutral concept-like gravity- in which choices are determined by some kind of natural law.

Have Draghi and co drunk so deeply of the neo liberal elixir that they can no longer discriminate between theoretical and highly contentious models of macro economics and empirical natural phenomena? (I suspect the answer is yes)

There is a hubris here that is all the more worrying because it seems largely unconscious. Yet when we look at the outcome of 'structural reform' in Greece we do not see the predicted recovery of the economy- we see a deflationary vortex- so even where their writ has run the result has been failure.

Can you imagine the outcome if Mark Carney began to talk about the UK Government's ' resistance to economic reforms.'??? We would think the man had succumbed to delusions of grandeur- he would not dare to intervene in policy in this way.

The EU will expire with or without us I believe- and it is upon the rocks of this kind of arrogance the ship will founder.

He answers the question if you bother to read the statement.

In fact he calls it in as apolitical way he can, namely that structural reforms are the issue, but how those reforms are implemented is up to the governments concerned.

His delusions of grandeur ? Surely he operates with the support of the heads of state of the democratically elected governments of the EZ. When those heads of state no longer support him it will be time to go - in fact he will have to.

Does anyone really believe that if he did not have the support of the French and Germans he would long remain in the post ?

Sounds to me like a get your shit together or else call to the Greeks.

Edited by Gigantic Purple Slug

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Goldman Sachs disease aka God complex, very common among central bankers after they create trillions from nothing.

when we sell them and their children to the chinese as working collateral to pay off the debt they deliberately ran up, they will not have such a god complex.

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He's just saying what Bernanke has already pointed out

If the EZ govts (Germany) dont sort their sh1t out punto pronto there won't be a monetary union.

Edited by R K

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when we sell them and their children to the chinese as working collateral to pay off the debt they deliberately ran up, they will not have such a god complex.

I am afraid they are pretty worthless as collateral.

China would need a military solution to get their money back, which would painful mostly for non-gods. Another possibility would be some Chinese and Western Gods Pantheon (some call it New Order) that will control mortals, I've got a feeling not for good of non-gods.

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So the governments are resistant to structural reforms and the banks are resistant to structural reforms so what's left except for everyone else to take the consequences as usual.

In the UK during the 80s/90s recession/economic calamity they were going to make all sorts of reforms, structural you name it, but in the event little or nothing changed or they did the opposite and here they all are again except on a bigger stage i.e. the europe and the world.

Edited by billybong

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So the governments are resistant to structural reforms and the banks are resistant to structural reforms so what's left except for everyone else to take the consequences as usual.

In the UK during the 80s/90s recession/economic calamity they were going to make all sorts of reforms, structural you name it, but in the event little or nothing changed or they did the opposite and here they all are again except on a bigger stage i.e. the europe and the world.

This may not be so resonant with younger, more recent readers of this site. However, it is all true and shows the true disdain and contempt the political class have for the the population, including those that wish to and do pull their levers. A totally digusting state of affairs. The political class really are the lowest form of two faced scum this country has to offer.

Edited by onlyme2

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