Another bad sign (actually two) for the EU and the Euro. The Euro lost 1.3% yesterday, and continued the losses today. The $US is now almost 1:1 with the Euro – a FAR cry from where it was previously.
On top of that, Bloomberg Markets reported yesterday:
“The presence of the ECB on markets will be there for a long time,” the institution’s president said in Frankfurt after the Governing Council agreed to add more than half a trillion euros to its bond-buying program and extend it until at least the end of 2017. Quantitative easing is “in a sense open-ended, it’s state-contingent,” he said.
Draghi cited weak underlying price pressures, political uncertainties and inadequate government reforms as he laid out the reasons for expanding the ECB’s asset-purchase plan to at least 2.3 trillion euros ($2.4 trillion). He and his colleagues have frequently stressed that the euro area’s economic upturn is largely reliant on continued monetary easing as governments fail to play their part.
In other words, quantitative easing through the “purchase” of other financial instruments by an institution that is literally creating “money” out of thin air and “spending” it through willing sellers, has no short term plans (if even ANY plans) to stop this absolutely absurd charade that they, along with the Fed, keep playing.
Meanwhile the economies of the western world keep growing, strengthening, blah, blah, blah ……. So we’re told …..
[More Bravo Sierra from the untouchables that think we’re all a bunch of One Delta Ten Tangos!]