The European Central Bank (ECB) committed itself to a quantitative
easing (QE) program of at least €1.1 trillion after announcing Thursday
that it would buy sovereign debt and other financial assets to the tune
of €60 billion a month to September 2016, and possibly beyond.
The decision was announced by ECB President Mario Draghi after a series of negotiations and manoeuvres in recent months aimed at circumventing German opposition to the plan. Bowing to that opposition, Draghi announced that the region’s 19 central banks would make 80 percent of the purchases and be responsible for any risks.
The official rationale for the decision is that the QE program is needed to combat deflationary pressures in the euro zone—inflation turned negative last month—and boost the region’s economy, which has still not reached the levels of output attained in 2007.
But the measures will have little or no impact on the real economy. Rather, they are aimed at making available further supplies of ultra-cheap cash for financial speculation, while governments across the region press ahead with so-called “structural reforms” to worsen the social position of the working class.
Read more Click here / www.trade4x.net
The decision was announced by ECB President Mario Draghi after a series of negotiations and manoeuvres in recent months aimed at circumventing German opposition to the plan. Bowing to that opposition, Draghi announced that the region’s 19 central banks would make 80 percent of the purchases and be responsible for any risks.
The official rationale for the decision is that the QE program is needed to combat deflationary pressures in the euro zone—inflation turned negative last month—and boost the region’s economy, which has still not reached the levels of output attained in 2007.
But the measures will have little or no impact on the real economy. Rather, they are aimed at making available further supplies of ultra-cheap cash for financial speculation, while governments across the region press ahead with so-called “structural reforms” to worsen the social position of the working class.
Read more Click here / www.trade4x.net
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