The ECB is Attempting to Corner the Bond Market… Buckle Up

• The ECB is Attempting to Corner the Bond Market… Buckle Up
  by Phoenix Capital Research, http://www.zerohedge.com/  
  In 2012, during the depth of the EU banking crisis which nearly took the entire EU financial system down, Mario Draghi stated that he would do “whatever it takes” to hold the EU together.
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  Anyone paying attention knew that this was a bluff. True, the ECB and EU leaders had already defied if not broken every condition of the Maastricht Treaty and the Schengen Treaty (the legislation that formed the EU proper). However, even to the most cynical analyst, Mario Draghi’s claim was pushing the envelope a little too hard.
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  Implementing capital controls and border controls limit freedom, but from the perspective of monetary policy, they’re secondary items. The REAL power is that of the printing press.
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  This is how Draghi’s promise to save the EU was different from every other action: it addressed the structure of the EU in its most critical component, namely the control of the currency.
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  It took the EU two years to cobble together its reasoning for how something that went completely against the Maastricht Treaty would be permitted. As usual it was the Germans (the ultimate holders of the purse strings) who gave the “OK.”
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  Now given the green light, Draghi has embarked upon a €60 billion a month QE program. Somehow this is meant to:
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  1)   Reboot a €46 TRILLION banking system that is totally insolvent.
  2)   Generate lower interest rates when most EU-member sovereign bonds are at multi-century lows.
  3)   Bring the EU economy back to growth. 
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  The whole idea is absurd. But it does reveal one important thing: that we are much closer to the end of the Central Bank-fueled $100 trillion bond bubble than ever before.
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