ECB ready to pump €1 trillion into euro zone economy

Irish Times ^ | Fri, Nov 7, 2014

[TigerLikesRooster]

ECB ready to pump €1 trillion into euro zone economy

Central bank ramps up efforts to rescue single currency bloc from deflation risk

The European Central Bank is ready to inject up to €1 trillion of new liquidity into the euro zone economy as it ramps up efforts to rescue the single currency bloc from the risk of Japanese-style deflation, Mario Draghi confirmed yesterday.

The ECB president also said the central bank’s governing council was unanimous in its commitment to use further unconventional tools, including quantitative easing, should economic conditions deteriorate. He added that the central bank had stepped up its preparations in this regard.

[TigerLikesRooster]

P!

[ryan71]

“Hol’ ma beer, while I blow up this balloon a little more”

[Revel]

No one has a real economy anymore so the governments resort to creating fake ones at the expense of everyone whoever saved money in their lives. In the end the fakeness is going to implode and leave a deep dark hole.

[KoRn]

I think deflation is generally a good thing. I know the central bankers react to it as a vampire to a silver cross. lol (they can’t control deflation)

[twoputt]

And now the currency wars begin. This is not going to end very well.

[AZLiberty]

I see your trillion, and raise you a trillion.

[AZLiberty]

I see your trillion, and raise you a trillion.

[Rockingham]

ECB money pumping will be inadequate because Europe needs lower tax rates, less regulation, and a restoration of national currencies for at least the ailing southern tier members of the Eurozone. Without such politically difficult structural reforms, Europe's malaise will persist.

[TigerLikesRooster]

Unfortunately EU is not up for any of the measures you listed, and their malaise will persist into indefinite future.

[Rockingham]

I suspect that the EU is like a house with a rotten structure and foundations, appearing strong to most of its inhabitants but with hidden weaknesses such that a few hard blows can collapse the entire edifice.

The EU's bureaucrats and their French and German political masters seem to realize that the EU has such weaknesses, thus accounting for their hard line against any British effort to limit immigration and against relief for the Irish of the draconian repayment terms of their EU rescue lending.

In addition, the German public cannot but eventually tire of endless rounds of bailouts for the EU's faltering southern tier. Once a recession sets in, I suspect that any German election will see the emergence of such sentiment with a vengeance.

[trebb]

This disease is spreading faster than Ebola...

[TigerLikesRooster]

This ECB economic disaster was preordained way before Ebola has become a international problem.

[1010RD]

Spot on analysis. Europe seems to love communism masked as cronyism via adulterated capitalism.

[1010RD]

They hate the Irish whose tax policies served to embarrass them.

[SunkenCiv]

Thanks TigerLikesRooster.

[Rockingham]

Quite true. The EU also dislikes the Irish for their independent streak, pro-business attitudes, and regard for America.