Euro ‘house of cards’ to collapse, warns ECB prophet

The Globalists understand the credit and crunch cycles of our system of the private creation of money, which is why they time their wars and epidemic depopulation schemes to coincide with the bust cycle to get rid of vast numbers of impoverished people. We are beyond the bust cycle in 2016. The Globalists can barely keep their financial fraud going.

From The Telegraph:

·   Ambrose Evans-Pritchard

16 OCTOBER 2016 • 4:51PM

The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of monetary union has warned.

“One day, the house of cards will collapse,” said Professor Otmar Issing, the ECB’s first chief economist and a towering figure in the construction of the single currency.

Prof Issing said the euro has been betrayed by politics, lamenting that the experiment went wrong from the beginning and has since has degenerated into a fiscal free-for-all that once again masks the festering pathologies.

 “Realistically, it will be a case of muddling through, struggling from one crisis to the next. It is difficult to forecast how long this will continue for, but it cannot go on endlessly,” he told the journal Central Banking in a remarkable deconstruction of the project.

The comments are a reminder that the eurozone has not overcome its structural incoherence. A beguiling combination of cheap oil, a cheap euro, quantitative easing, and less fiscal austerity have disguised this, but the short-term effects are already fading.

The regime is almost certain to be tested again in the next global downturn, this time starting with higher levels of debt and unemployment, and greater political fatigue.

Prof Issing the lambasted the European Commission as a creature of political forces that has given up trying to enforce the rules in any meaningful way. “The moral hazard is overwhelming,” he said. 

The ECB is now buying corporate bonds that are close to junk, and the haircuts can barely deal with a one-notch credit downgrade

European Central Bank is on a “slippery slope” and has in his view fatally compromised the system by bailing out bankrupt states in palpable violation of the Treaties.

“The Stability and Growth Pact has more or less failed. Market discipline is done away with by ECB interventions. So there is no fiscal control mechanism from markets or politics. This has all the elements to bring disaster for monetary union.

“The no bail-out clause is violated every day,” he said, dismissing the European Court’s approval for bail-out measures as simple-minded and ideological.

The ECB has “crossed the Rubicon” and is now in an untenable position, trying to reconcile conflicting roles as banking regulator, Troika enforcer in rescue missions, and agent of monetary policy. Its own financial integrity is increasingly in jeopardy.

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