Thanks for expanding on the topic of debt. What you described in metaphor as, 'give us our saturated cakes and let us eat them all' makes important point I think: it is to force all unwilling participants to give up their savings, in order to give central bankers the power to control economy from collapsing, and so people can keep their jobs, but in exchange left totally dependent on state. In another words it is a totalitarian's wet dream.Hi Mikkael. I would interpret this as the debt-junkies demanding that the politicians accept that the people be squeezed dry to save the debt making, drug fiends who depend on an endless supply of free money (i.e. free drugs) so as to leverage their 'speshulness' onto the rest of us.
Essentially the FT - which is one of the key carriers of command to the political class on behalf of those in the insulated world of god-like aspiring 'high-finance' - is saying 'more of the same for us, but we wont be paying for any of this by the way - the 'public will' (more debt=more inflation=higher prices+higher taxes). Zero % or negative interest rates means that there is no forward price value in the money (an essential risk/reward balancing equation in the decision to borrow or make more debt). Its saying all the cost is being shunted down the road onto other people 'in the future' - though that future may be next year with tax rises say required to reflect the new 'austerity' and the fact that its all your fault, bad human! They can then use this today at whatever interest rate they like (20% plus say) to make huge free profits on top of the gift of free money. Its called a print your own mafia extortion racket.
When they say it needs to be accompanied by 'private debt cancellation' they are saying 'give us our saturated cakes and let us eat them all.... plus all the other cakes in the store as well!' i.e. whilst all the above is going on, we also expect you politicians to evaporate all the debt we few have built up when we 'borrowed all that free money you've given us since 2008 and pile the cost of so doing back onto the public purse.
Pure psychopathy unleashed; utter madness - and reveals what economic/central banking has always been - institutionalized fraud and day light robbery. Its just no longer pretending to be based on any kind of checks and balances, reality or equity.
In a line it means - milk them all until they drop!
Hope that all makes sense. What do you think?
Now Christine Lagarde [current president ECB, btw she is lawyer] is a proponent of the Negative Interest Rates Policy, championing the unconventional mechanism to achieve growth. Since the eurozone has barely cracked 2% GDP, many are anticipating that Lagarde will deepen negative rates during her term as president. Anytime she has mused on the subject, Lagarde has usually dismissed concerns about the saver, noting that they are also consumers, borrowers, and workers.
Lagarde herself:
"We should be happier to have a job than to have our savings protected. I think that it is in this spirit that monetary policy has been decided by my predecessors and I think they made quite a beneficial choice.”
When thinking again about those Draghi's words, that "The loss of income incurred by the private sector — and any debt raised to fill the gap — must eventually be absorbed, wholly or in part, on to government balance sheets", that sounds to me like they're going to bail out virtually everyone.