Posted on 01/22/2015 2:15:52 PM PST by Olog-hai
The European Central Bank will plough €1.1 trillion into the eurozone economy in a last-ditch attempt to breathe life into the European economy.
At its monthly governing council on Thursday (January 22), the bank’s governing council agreed to start buying up to €60 billion of government bonds from March in an unprecedented quantitative easing program. The program is open-ended, and will run until September 2016 at the earliest.
Speaking at a press conference following the governing council meeting, ECB president Mario Draghi said that the bond-buying program would remain in place “until we see a sustained adjustment in the path of inflation which is consistent with our aim of achieving inflation rates below, but close to, 2 percent.”
Prices across the currency union fell by 0.2 percent in December, the first time the eurozone recorded negative inflation since 2009. Although the fall was largely attributed to falling oil prices, it has heightened concerns about a prolonged period of deflation in the eurozone. …
(Excerpt) Read more at euobserver.com ...
“ECB president Mario Draghi said that the bond-buying programme would remain in place “until we see a sustained adjustment in the path of inflation...”
To paraphrase, “The beatings will continue until morale improves.”
Dollar will continue up against the euro.
The EU brainiacs believe that, the solution to failed socialism is, more socialism via government infusion of money.
Insanity: doing the same thing over and over again and expecting different results.
Virtual money.
Looks like they have decided to follow Pied Piper Obama down the tubes.
You said...
“Dollar will continue up against the euro.”
No doubt.
That will freak out the Fed. The Fed and the government want a weak dollar.
What a mess
” The EU brainiacs believe that, the solution to failed socialism is, more socialism via government infusion of money.”
It made the crony capitalists on Wall Street happy today......
Alot of ppl front loaded this ECB announcement by purchasing the bonds. Now they receive their big pay day.
Thanks Olog-hai.
The problem in Europe isn’t credit or money, it’s their tax and regulatory regime. You’ve got a massive population living off a minority of entrepreneurial individuals and corporations. There isn’t enough innovation available to keep up.
One thing socialists (and I use the term broadly for the entire central planning left) don’t get about free markets is the little, incremental innovations that happen on the street. A person is better off with a food cart, working hard and struggling to earn $25,000.00 a year, than getting the equivalent via transfer payments.
Work is divinely appointed to man. Not as a punishment, but as an opportunity to use our God-given talents to improve ourselves. It’s only through struggles that greatness is achieved. We spend so much time on billionaires that we miss the blessings of the working “poor” to our economy.
Imagine an economy with ten individuals on welfare of $25K each. The bureaucratic cost to the economy is more than just the $250K in net payments, but let’s ignore that for now. Productive workers must first earn an ‘excess’ $250,000 to support those welfare recipients as well as themselves and their dependents within their own household.
Releasing just one of those individuals from the welfare trap to take on a hard job of drudgery and struggle, but earning that same $25K. Realize that the net benefit isn’t just the welfare savings of $25K which the productive sector gets to keep and use, but an additional $25K in economic benefit as a whole from the ex-welfare recipient.
People forget that change happens at the margins. So the Democrats’ push to get people onto welfare rolls creates an amplified downward effect on the economy. Getting them off will have the exact opposite effect. This has to be understood so that the nation can improve itself over time.
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