While Lagarde is over 4% at the BTP hairdresser and skyrocketing Spread. These are the “good ones”

13 June 20222 years ago babelfish

Today Mrs Lagarde, president of the ECB, must be at the hairdresser, or at the tanning salon, or doing those famous thigh and buttock exercises that made her famous. because of his commitment against the "Splitting" of the euro area today nothing has been seen. Meanwhile, interest rates on BTPs have exploded and exceeded 4%, something that has not been seen since 2013, in the midst of the debt crisis:

In the same way, the BTP Bund spread is skyrocketing, it touched 250 basis points and then dropped to more than 240, even here we are at values that have not been seen for a while

Also in this case these are values that have not been seen since the peak of March 2020, when Lagarde herself completely forgot about the problem and said, papal papal, that the Spread "It was not a problem of the ECB". As, after all, neither is the Euro, in the sense that the only real problem of the ECB is inflation, the same which, being due to external factors, it is unable to control.

Honestly, there are not many explanations for this indifference of Mrs. Lagarde. I hazard a few among which you can choose the best:

he is really at the hairdresser's and no one in Frankfurt is in the office, as Monday morning is a bad day;
he wants to push the countries of the South, essentially Italy and Greece, to the breaking point, so that they accept even more indigestible policies, Patrimonial laws, which is also supported by Visco;
on a mandate from the Nordic countries, he pushes the Euro to the breaking point, towards the imposition of internal controls on capital movements, as foreseen by @Musso ;
he understands nothing of economics and money;
a mix of the above.

Pending we note that the Spread depends only on the Central Bank, while the yield on Japanese bonds (Debt / GDP 260%) is equal to 0.25% exactly what the BoJ wants. Ah, and Japanese inflation is at 2.5%. But they have Kuroda, not Lagarde, and above all they don't have the BundesBank.

In any case, no problem: every day of Lagarde inaction is one less day of life for the Euro, the Frankenstein Monster of coins.

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The article While Lagarde is over 4% from the BTP Hairdresser and Spread skyrockets. These are "Quelli bravi" comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/mentre-la-lagarde-e-dal-parrucchiere-btp-oltre-il-4-e-spread-alle-stelle-questi-sono-quelli-bravi/ on Mon, 13 Jun 2022 12:30:21 +0000.