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Nein, Nein, Nein. Germany will not allow the ECB to do full scale QE. Anything that is done will be too small, too late and of little use. The German electorate are so ingrained in their own dogma that they will never allow the politicians to change course. Even if they did it would be challenged through the Constitutional Court which has already fired a warning shot over the bows of the ECB about OMT.
Not that QE is the answer, it certainly isn't and at best is a poor stop gap measure in the hope of kick starting the economy to get to a 'virtuous circle' of economic growth. That hasn't happened because the money doesn't escape to the real economy where it is needed. Helicopter money would work better. Any other solution is off the cards because the Germans would see it as moral hazard to help the struggling economies in the EZ. Good grief I was wrong about the euro fracturing, but was right about the cost of saving the currency would be at the expense of economies in the EZ. Anyone with an interest could see that coming. I have also predicted that they will throw everything including the kitchen sink to save the euro, even to the point of allowing economies to collapse into depression. The only way it can be broken if for eurosceptic parties to challenge the system and break it up. That is a long process as elections only happen every few years and the game is stacked in favour of the establishment, but it is as the FN in France shows.
The zealots in the EU and their banker chums are willing to go all in, rather than take a backward step like an orderly breaking up of the euro. Just how much punishment do the people or Europe have to endure before they throw these parasites off their backs?
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