• When former ECB President Draghi comes out of hibernation and calls for a debt jubilee, things are truly in dire straits. We just want to share these three quotes from the Financial Times article with you because they speak volumes:

 

  1. “Much higher public debt levels will become a permanent feature of our economies and will be accompanied by private debt cancellation”;
  2. “It is the proper role of the state to deploy its balance sheet to protect citizens and the economy against shocks that the private sector is not responsible for and cannot absorb”
  3. “Public debt levels will have increased. But the alternative — a permanent destruction of productive capacity and therefore of the fiscal base — would be much more damaging to the economy and eventually to government credit”

 

For the full report, click here