Argonautica

Professional investors can review published thought leadership and market updates from the Argonaut Investment Team.

1 post found for 06 August 2012

‘Can Draghi take the Euro-zone off the modern day gold standard?’

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…