[Editor’s Note: Is one of the unintended consequences of NIRP that the ECB is about to run out of eligible collateral to support their global carpet remnant purchases of junk bonds and other detritus? This is what happens when the system is flooded with too much liquidity. Even central banks can drown. ]
From The Telegraph: Euro ‘house of cards’ to collapse, warns ECB prophet
The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of the monetary union has warned.“One day, the house of cards will collapse,” said Professor Otmar Issing, the ECB’s first chief economist and a towering figure in the construction of the single currency.