Saturday, January 24, 2015

«Eurozone gloom as French and German industrial output falls». Fear not; the ECB will come to the rescue by letting the Euro devaluate, something it can do for Germany and France, but not for Greece or Portugal.  In the VERY SAME WAY, the obsolete British industry suddenly became «competitive» again when George Soros forced the Pound of the European monetary system in 1992 or 93...European Central Bank staff presented policy makers with models for buying as much as €500bn ($591bn) of investment-grade assets, according to a person who attended a meeting of the Governing Council.  Various quantitative-easing options were shown to governors on January 7 in Frankfurt, including buying only AAA-rated debt or bonds rated at least BBB-, the euro-area central bank official said. Governors took no decision on the design or implementation of any package after the presentation, according to the person and another official who attended the meeting. The people asked not to be identified because the deliberations were private.
A 500 billion-euro purchase program would take the ECB halfway toward its goal of boosting its balance sheet to avert a deflationary spiral in the euro area. The institution is also buying asset-backed securities and covered bonds, and government bond-buying would be part of fresh stimulus to be considered at the Governing Council’s January 22 meeting.,, And why not? If the Euro devalues it helps all exporters in the EZ. Also Spain, Italy and Greece become cheaper for UK, US and Chinese tourists.

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