No, it’s not April Fools’ Day yet. No, it’s not a bitter bad joke. The former head of the ECB Mario Draghi will be awarded the Federal Cross of Merit by President Steinmeier on 31st of January. The award ceremony has already been officially scheduled. Yes, the German saver would like to congratulate him on the low and zero interest rates, and that for years to come? Congratulations, because he has earned such a Federal Cross of Merit honestly?
But joking aside. Does Mario Draghi get the Federal Cross of Merit for the fact that his monetary policy (printing 2.6 trillion Euros and abolishing interest rates) worked so well? For stimulating the economy and raising inflation to 2% as planned? (which did not happen at all). No, it is of course about the “big picture”. So what exactly does he get this award for? We can speculate. Take, for example, the words spoken by Angela Merkel when Mario Draghi said goodbye as ECB President at the end of last year. He had successfully steered the Eurozone through the debt crisis. The monetary union had been strengthened by Draghi, etc.
That Mario Draghi ultimately kept the entity called the Eurosystem artificially alive only by brutal money printing? Anyway, who in high politics is interested in the “small details”? That thanks to the interest rates abolished by Mario Draghi, the Mediterranean countries can only survive artificially, not a word about that. No matter. That banks, pension funds, insurance companies etc. have massive problems thanks to Draghi’s policy, no matter. That the pension systems are sliding dramatically into crisis thanks to him, it doesn’t matter. The superficial result counts. After all, this is about an award. That the building behind it (the Eurozone and the ECB system) is shaky and rotten, that banks, states etc. have now got used to money printing and zero interest rates like a drug and can’t get away from it – it doesn’t matter. Mario Draghi gets his Federal Cross of Merit, for his merits!