The devil is always in the detail

Back on 6th March I quoted Ambrose Evans-Pritchard - "An internal devaluation is achieved (under EMU) by forcing unemployment to such excruciating levels that it breaks the back of labour resistance to pay cuts. It is the polar opposite of a currency devaluation that spreads the pain" - to precis the Eurozone's approach to the crisis, to squeeze real wages whilst leaving the profits of firms and corporates intact. 

The Guardian reprints a piece that underlines Draghi's innate mendacity in letting this particular cat out of the bag; he recently presented a chart showing each Eurozone country's real output value (i.e. excluding inflation) against each's nominal (i.e. including inflation) wage growth. 

The point Draghi was making was that the blue countries (Germany & co) were 'balanced' whilst the naughty red Club Med countries had let wages outstrip productivity and therefore breaking the back of labour resistance to pay cuts was the answer. 

In fact this isn't the case.