Well, we thought they would, and they did. Oddly, (not) this wasn’t headlined. The headline had to do with the desire for the ECB (European Central Bank) to copy Japan and the US in buying bonds with newly printed money.
FRANKFURT, Germany (AP) — The European Central Bank has deployed a raft of aggressive measures to boost Europe’s economy, but stopped short of the one many economists insist would do the most to help: large-scale purchases of bonds.
That could change sooner rather than later, analysts say, if inflation remains low.
Purchases of bonds using newly created money — called quantitative easing — have been used with some success so far by the U.S. Federal Reserve, the Bank of England and the Bank of Japan. They can reduce market interest rates, making it cheaper for consumers and businesses to borrow, helping growth.
So why not in Europe? ……
Well, yes, why not devalue one’s currency and claim a jobless recovery, and call it a “success”? Did anyone notice the US’ negative GDP last quarter? That’s “success”, I tell you!!! And, really …. what good is low inflation? Who wants that? …. I mean, other than the people? They’re just being greedy, wanting their currency to hold value. And, for that, they should be punished!
Among the list of measures the ECB did take on Thursday was an offer of long-term, cheap loans to banks on condition they lend to companies. That condition aims at making sure the money gets to the economy and helps create growth and jobs. The ECB also cut the rate at which it loans to banks to 0.15 percent from 0.25 percent and imposed an unusual negative interest rate of 0.1 percent on deposits from banks — an incentive for them to loan those excess funds.
Yes, force banks to loan money, regardless of the risks …… that’s never gone wrong before, has it? So, saved money is now “excess funds”.
If you ask me, I believe the path is clear for the banks. They simply need to set up a central bank independent of the governmental sponsored “central banks”. If they don’t, they will be forced to make bad loans, again. They will go broke, again. And, they will be sent to prison at an ever increasing rate.
As for the people …. understand and realize these people are against you, they are not for you. An inflation rate usurps your buying power.
Consider this …. someone wants to replicate the US’ and Japan’s economy. As an American, I’m here to testify, you do not.