I’ve got Draghi fever, she’s got Draghi fever

We’ve got Draghi fever, we’re in debt

She’s gone Dollar crazy, I’ve gone Euro hazy

Ain’t no thinking maybe, we’re in Debt

Are we still taking this GS puppet seriously?  

Well, someone is as the Global Markets are anxiously waiting to hang on every word Draghi says in his speech following the ECB rate non-decision (you heard it here first) at 8:30.  The truth is that the Central Banksters are running out of ammunition and have now begun to ask the Governments to reverse the austerity programs they demanded to now stimulate the economies before deflation begins to erode the value of the Bankster’s assets, which would collapse their loan to value ratios and lead to BIG TROUBLE in very short order.  

The ECB is already running a $1.2 TRILLION bond-buying program, providing up to $70Bn in MONTLY artificial support for Sovereign Debts.  Without this backstop – one has to wonder what the real interest rates in Europe would be.  All that this form of QE actually accomplishes is allowing countries with very risky credit to borrow more and more money while the population of savers is underpaid on their retirement accounts.  

Did I say underpaid?  That’s an understatement as rates have now gone NEGATIVE as some banks are now charging fees to depositors and paying no interest at all!  The official rates in Switzerland, Sweden and Denmark have already gone negative as Governments are pulling out all the stops to get their people to throw their retirement accounts into the stock market or, in the very least – to go spend it on something.  

Does that sound insane?  Insanity is defined as doing the same thing over and over again and expecting different results.  Along with the ECB decision at 8:30 we’ll see the Chicago Fed Report and that, like most Manufacturing Reports of late, is likely to be weak – a very strong indicator that economic momentum is DECLINING during this record QE season, not expanding at all.  QE simply does not work – but it’s the only play in the Central Banksters’ playbook.