OPEN LETTER TO MR.
MARIO DRAGHI, PRESIDENT OF THE ECB
CC. Mr. Klaas Knot, president
June 25, 2012
Dear Mr. Draghi,
When will the public be
informed that the current approach to solve the monetary
problems will have no other future but the collapse of our
currency, meaning it’ll loose its purchasing power in full?
As a strategist and columnist,
for years I have been advocating that governments basically
always erode the purchasing power of their peoples like it
already happened in ancient times.
Some of my columns were sent
to leaders of Dutch political parties as well as to the former
president of the Dutch Central Bank Nout Wellink, as well as to
the current president Klaas Knot.
Besides ‘notice taken’ from
Nout Wellink, none took the courage to answer. Is it because
they are afraid to confirm the ‘un’truth and fear ‘blood in the
streets’? Is it because there is no other explanation to the
gigantic exploitation and destruction of the fiat currencie(s)?
This becomes plausible when
the Bank of International Settlements reports an amount of €37
trillion on the balance sheets of the European banking system,
which is by the way far less cohesive than the banking system in
This becomes even more
plausible when measuring America’s total debt including
uncovered liabilities and social obligations (pensions, medicare
and medicaid) in the range of $202 trillion (roughly four times
exceeding the world’s gross product), according to professor
Laurence Kotlikoff of the Boston University.
What to think of some recent
quotes from David Stockman, former budget chief of president
Reagan which cannot be misunderstood:
we are in the last innings of a very bad ball game
we are on the edge of a crisis in the bond markets
a frozen Fed is destroying the capital market by pegging and
manipulating the price of money and debt capital on blowing
up its balance sheet from $900 billion in 2008 (which took
93 years!) to nearly $3.000 billion today.
To make things worse, ex
president candidate Ron Paul recently stated that the Fed is
nothing else but a collusion of big government and big business
to profit at the expense of taxpayers. To my knowledge, this
is the first time that the Fed was ‘nailed’ by an official
In the same statement Paul
opined that not a single currency survives once the government
is in charge of it. That’s why he commented: the only viable
solution is to get government out of the money business
permanently. He concluded by saying: it is imperative
that the American people be educated on the dangers of the Fed
and the importance of restoring sound money; the laying of that
groundwork must begin today, so that the American people will be
prepared for the day when the mirage the Fed has created
evaporates completely. All these statements were
found on Paul’s website
No doubt everyone is tired of
bad news, although we cannot circumvent the facts like:
< Europe is experiencing
severe bank runs
< the banking system is
running excessive leverage and risk
< budgets in most Western
countries are out of control
< the costs of servicing the
ever increasing amounts of government debt are rising rapidly
< whilst the economies are
slowing down or are even in contraction
< leaving the solution to the
digital money printing.
It would be wonderful if you
could give the ECB a better press than Ron Paul did on the Fed.
Also, it would be appreciable if you could give good reasons for
maintaining some kind of ‘normalcy bias’ shine on the current
draconian monetary situation. Or, perhaps wouldn’t it be better
to just acknowledge the total failure of the euro experiment
before it gets even more dramatic?
Look forward to hearing from
Robert Broncel, strategist and