The latest propositions by Mario Draghi are very seductive, they seem to be the perfect answer to all the financing problems in the "EUROZONE" !!!
The effect of embarking on a policy of buying "repayable short-term national debt" to prevent spiraling interest rates is a good idea. However, what are the limits to such a policy ?
Does it only concern Spain and Greece and perhaps Italy ? What about Portugal, Ireland and later others ?
Furthermore, as President of the EUROPEAN CENTRAL BANK will he guarantee that there be publications, monthly, of the Bank's Balance Sheet ? Germany in particular will want to be clearly informed if their obligations are to be in any way extended !!!
Legal Balance Sheets in fact are not too much of a problem. Many "dangerous conditions" are hidden in the footnotes of the Balance Sheet !!! In the current circumstances of the EU or "EUROZONE", these hidden conditions must be evalued, country by country, to show the extent of any possible risks !!!
This could be a revealing fact which could determine the ultimate limitation of what Mario Draghi is now proposing !!! It could also sway the way countries which are not yet in the EUROZONE, will decide their future !!!
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