ECB folly

When is this charade going to stop? Telling everyone it’s still about inflation is becoming an insult to every thinking human being. The inflation is there, it has been for years. The thing is, it’s only there in stuff that rich people buy, like stocks, Swiss Francs, property, vintage cars and art. The money is just not reaching the real world, because of many reasons, one of them being that an aging population does not spend money when they are fearing for their savings because of a Zero interest rate on their retirement accounts . Are the ECB guys too daft to see this? Of course not. Then why continue? Because the goal is really a different one: It is to force the northern European countries and especially Germany – governments and consumers alike – to spend more money than they would otherwise be willing to do, so their spending will improve the economic situation of the southern European countries that are unwilling or unable to enact reforms that would lower their debt burden and improve their competitve standing. Whether that is good or bad, right or wrong is another debate, but it is high time to admit it and to stop trying to fool everyone!

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