by Kenneth Schortgen, Shotgun Economics:
When the history books are written years in the future, the legacy of Mario Draghi will not be a good one. In fact as the ECB head prepares to ride off into the sunset this October, he may well be labeled the central banker who destroyed the continent’s single currency system.
And sadly, it appears that Brussels will not learn from their mistake in appointing a Goldman Sachs tool who was previously known for manipulating the numbers to ensure Italy made it into the Coalition, and is instead doubling down by nominating globalist and current head of the IMF Christine Lagarde to become the next President of the European Central Bank.
It’s rare to find someone who is consistently wrong on everything. Christine Lagarde, whom the EU just anointed as the president of the ECB, comes close. To emphasize the point, Negative Interest Rates Benefit the Global Economy, Says IMF Chief Christine Lagarde. Subzero interest rates in Europe and Japan are “net positives” for the global economy, International Monetary Fund chief Christine Lagarde said Tuesday, though she warned that the side effects of unorthodox central-bank policies should be closely monitored. “We see the recent introduction of negative interest rates by the ECB and Bank of Japan —though not without side effects that warrant vigilance—as net positives in current circumstances,” Ms. Lagarde said. – FX Street
So to put it bluntly, Europe is preparing to replace one of the worst central bankers in history with an individual who not only praises his negative interest rate actions, but also believes Japan’s 30 years of stagnation has been a good thing.