(Before It's News)
Sir, Claire Jones writes: “Mario Draghi hit back on behalf of monetary global policymakers, dismissing growing criticism that their aggressive actions to support the economy had widened the gap between rich and poor”, Draghi said “We have every reason to believe that, with the impetus provided by our recent measures, monetary policy is working as expected: by boosting consumption and investment and creating jobs, which is always socially progressive” “Draghi denies QE hits poor hardest
” October 27
Draghi is lying, that is unless he is dangerously clueless!
Besides being President of the European Central Bank, Mario Draghi is the former chair of the Financial Stability Board, and the current chair of the Group of Governors and Heads of Supervision of the Basel Committee for Banking Supervision.
Therefore Draghi must be perfectly aware of the odious discrimination against the riskier (including the riskier future) that, by favoring so much what is ex ante perceived as safe, is imbedded in the current capital requirements for banks. The sad truth is that bank regulators, the Basel Committee and FSB, have de facto decreed inequality in the access to the opportunities represented by bank credit.
The distortion that nefarious piece of regulation produces, impedes that any stimuli, like that of already tilted in favor of assets owners QEs, can reach where it best could help to create jobs. In other words regulators make banks finance “safe” basements where the young can live with their parents, not the new “risky” jobs they need for them to also become parents.
And Sir, for Draghi to boast his policies to be “socially progressive”, must be an insult to all those who like to define themselves as progressive… that is unless that term has a totally different meaning I am unaware of.
PS: Again, here is an aide memoire
on some of the monstrous mistakes of said regulations.