nectar, "This will give Mr Draghi the mandate to activate a Multi Billion Euro Round of Money Printing in order to begin purchasing Spanish Bonds on the secondary bond market to bring down their yields."
When activated the ESM will allow the ECB to simultaneously sell bonds (mainly French and German) it already holds and buy 2-3y Spanish bonds. This should affect the the longer term rate and make Spain's borrowings cheaper.
The ECB won't print money but will trade quality bonds for junk bonds.
Spain hasn't applied as yet. It's a game of getting a better deal from Germany.
Certainly, when it happens, the euro should rise and the USD fall.
