We discuss European Monetary Policy in this video, and how Mario Draghi is well behind the inflation curve in Europe. Core Inflation in Europe and Germany has never been a reliable inflation reading metric in Europe. Those market strategists who cite the core inflation metric as to why the ECB should continue to buy assets need to look back at the history of the core inflation readings since the inception of the European Union and realize this number has never been high in Europe due to structural reporting issues with how the data is collected and the makeup of the European Union itself. And moreover, interest rates have been much higher in Europe with commensurate levels of the core inflation readings we have today.
It is rather obvious that Mario Draghi is in denial, and digging his feet in for maintaining the status quo at the expense of keeping German and European Union inflation under control. Mario Draghi needs to step down in my opinion because his current stubbornness is creating massive bubbles in European and Global Assets. He is the most reckless of the Central Bankers right now from a policy perspective, and that is saying a lot given what Japan is doing with Monetary Policy. How can the ECB`s only mandate be keeping a lid on Inflation, and he does the Opposite to fight this from a Monetary Policy Perspective? Somebody in Europe needs to step in and take away Mario Draghi`s dogmatic, dictatorial power and replace him with someone who performs in respect to the ECB`s own Inflation Mandate!