We at Argonaut have consistently argued that the Euro-zone was uniquely vulnerable to a sovereign debt crisis – not because of high levels of debt and fiscal deficits – but because there was no central bank buyer of sovereign debt as a last resort. No sovereign should ever default on debt denominated in a currency which its central bank can print. But within the Eurosystem it is the ECB which controls the printing presses, not the national central banks. As a result, Euro-zone sovereign debt has…
‘Can Draghi take the Euro-zone off the modern day gold standard?’
06 Aug 2012
Posted by Barry Norris