Posted on 01/22/2015 7:12:26 AM PST by Red Badger
European Central Bank (ECB) President Mario Draghi announced the launch of an open-ended, expanded monthly 60 billion euro ($70 billion) private and public bond-buying program on Thursday.
The long-anticipated introduction of euro zone government bond purchases will bring the ECB's buying program into line with the U.S. Federal Reserve's quantitative easing (QE).
The program will be open-ended, lasting until at least 2016, Draghi told reporters at his regular media conference on Thursday, and will start in March this year. The hope is that it will boost the region's painfully low inflation rate, which came in at an annual minus 0.2 percent in December.
Explaining the ECB's decision, Draghi said: "Inflation dynamics have continued to be weaker than expected. While the sharp fall in oil prices over recent months remains the dominant factor driving current headline inflation, the potential for second-round effects on wage and price-setting has increased and could adversely affect medium-term price developments."
(Excerpt) Read more at cnbc.com ...
Does this mean that a BMW will soon be ‘cheaper’?..............
***********
Maybe to buy, but not to maintain. ;)
Okay, then Mercedes...............
QE (aka monetizing debt) is good for one thing and one thing only...devaluing your currency.
It robs banks of peoples’ savings without the need for a gun......................
Yeah, everyone in Europe has been complaining about the low inflation.
"Prices are too low!". "The cost of living isn't going up!" said nobody, ever.
This is about banks reducing the real value of their horrendous debts. And. Nothing. Else.
I’ll stick with Honda. Something I can afford! :)
And. Totally. Agree. :)
:0)
That's nothing.
That’s DEFLATION!............can’t have that......might catch on...................
$70 Billion per month?
The presses will be on full speed...............
And this bang will end with a boom.
1938...............
Nothing like the 20's or 30's.
The German Central Bank is NOT onboard with this and it's unlikely to result in the purchase of German Bonds, no matter the denomination.
This will fracture the euro and EU faster than anything else I can think of.
This is the ECB DARING the Germans, Dutch etc. to stop them.
Double-dog dare.
Germany can, and likely will.
They could simply announce the issuance of the Mark alongside the Euro and allow the exchange rate to float. And, then, issue German Bonds in Marks.
Implosion.
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