{"id":54,"date":"2012-10-25T14:18:51","date_gmt":"2012-10-25T14:18:51","guid":{"rendered":"http:\/\/www.globalbuzz.net\/de\/?p=54"},"modified":"2012-10-25T14:18:51","modified_gmt":"2012-10-25T14:18:51","slug":"germany-lured-into-a-trap","status":"publish","type":"post","link":"https:\/\/www.globalbuzz.net\/de\/news\/germany-lured-into-a-trap","title":{"rendered":"Germany Lured into a Trap"},"content":{"rendered":"<div id=\"attachment_55\" style=\"width: 550px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.globalbuzz.net\/de\/files\/2012\/10\/draghi.jpg\" target=\"_blank\"><noscript><img decoding=\"async\" aria-describedby=\"caption-attachment-55\" class=\" wp-image-55 \" title=\"Mario Draghi - European Central Bank\" src=\"http:\/\/www.globalbuzz.net\/de\/files\/2012\/10\/draghi.jpg\" alt=\"Mario Draghi - European Central Bank\" width=\"540\" height=\"315\" srcset=\"https:\/\/www.globalbuzz.net\/de\/files\/2012\/10\/draghi.jpg 600w, https:\/\/www.globalbuzz.net\/de\/files\/2012\/10\/draghi-300x175.jpg 300w\" sizes=\"(max-width: 540px) 100vw, 540px\"><\/noscript><img decoding=\"async\" aria-describedby=\"caption-attachment-55\" class=\" wp-image-55  lazyload\" title=\"Mario Draghi - European Central Bank\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20540%20315%22%3E%3C%2Fsvg%3E\" alt=\"Mario Draghi - European Central Bank\" width=\"540\" height=\"315\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20540%20315%22%3E%3C%2Fsvg%3E 540w\" sizes=\"(max-width: 540px) 100vw, 540px\" data-srcset=\"https:\/\/www.globalbuzz.net\/de\/files\/2012\/10\/draghi.jpg 600w, https:\/\/www.globalbuzz.net\/de\/files\/2012\/10\/draghi-300x175.jpg 300w\" data-src=\"http:\/\/www.globalbuzz.net\/de\/files\/2012\/10\/draghi.jpg\"><\/a><p id=\"caption-attachment-55\" class=\"wp-caption-text\">Mario Draghi &#8211; European Central Bank<\/p><\/div>\n<p>The FT explains how European Central president Mario Draghi has lured Germany into a trap which makes it virtually impossible for that nation to stop financing the Eurozone no matter how profligate it continues to be.<!--more--><\/p>\n<p>The \u201cClub Med Bank\u201d (as I dubbed it last year when pointing out how control has passed into the hands of the profligates) &#8212; with only Germany\u2019s representative dissenting &#8212; has approved unlimited purchasing of the government bonds of overspending member-nations whose securities are being drained of support from sceptical private-sector lenders.<\/p>\n<p>\u201cDraghi may claim that the ECB will stop buying the bonds of countries which are not compliant with their agreed programmes,\u201d the FT comments.<\/p>\n<p>\u201cBut doing so after the central bank has stuffed itself with a country\u2019s bonds is like putting a gun to one\u2019s own head and threatening to pull the trigger\u201d (because its losses on securities driven into default would be so enormous).<\/p>\n<p>What\u2019s more, the bond-buying policy, says Thailand\u2019s former deputy finance minister Pisit Lee-artham, \u201cis analogous to a dose of Paracetamol for headache relief \u2013 it will not solve the fundamental issue\u201d of the financial sector\u2019s inherently dangerous weaknesses.<\/p>\n<p>Unfortunately the central bank is the only game in town because it\u2019s the only Eurozone entity with the power to act. The Eurozone\u2019s politicians are disunited, unwilling to cede national sovereignty, and lack the centralized power to implement the tough decisions necessary, even if they were able to take them.<\/p>\n<p>CopyRight \u2013 OnTarget 2012 by Martin Spring<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FT explains how European Central president Mario Draghi has lured Germany into a trap which makes it virtually impossible for that nation to stop financing the Eurozone no matter how profligate it continues to be.<\/p>\n","protected":false},"author":1,"featured_media":55,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[17,3,1],"tags":[97,95,94,93,28,96],"class_list":["post-54","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-featured","category-news","tag-bond-buying","tag-ecb","tag-european-central","tag-ft","tag-germany","tag-mario-draghi"],"_links":{"self":[{"href":"https:\/\/www.globalbuzz.net\/de\/wp-json\/wp\/v2\/posts\/54","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.globalbuzz.net\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.globalbuzz.net\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.globalbuzz.net\/de\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.globalbuzz.net\/de\/wp-json\/wp\/v2\/comments?post=54"}],"version-history":[{"count":2,"href":"https:\/\/www.globalbuzz.net\/de\/wp-json\/wp\/v2\/posts\/54\/revisions"}],"predecessor-version":[{"id":57,"href":"https:\/\/www.globalbuzz.net\/de\/wp-json\/wp\/v2\/posts\/54\/revisions\/57"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.globalbuzz.net\/de\/wp-json\/wp\/v2\/media\/55"}],"wp:attachment":[{"href":"https:\/\/www.globalbuzz.net\/de\/wp-json\/wp\/v2\/media?parent=54"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.globalbuzz.net\/de\/wp-json\/wp\/v2\/categories?post=54"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.globalbuzz.net\/de\/wp-json\/wp\/v2\/tags?post=54"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}