EU EUROPE NEWS Friday, 3 June, 2016
the President of the ECB Mario Draghi, who even today – unlike the President of the federal departments, has left unchanged the benchmark interest rate, confirming the borrowing costs to zero, to a minimum of all time in force since March 2016, while the rate on marginal deposits remains at -0.4%, and the rate on the marginal lending to 0.25%, remembers the Titanic’s orchestra, which continued to play the violin as the ship, considered unsinkable, he sank to peak in the oceans.
All EU and international economic indicators, certify the total failure of the monetary policies of Dragons and ECB , which in addition to having caused the deepest recession in history dressed up with no confidence, austerity, worsening living conditions and deflation, triggered a popular rejection of Europe oligarchies, bureaucracies and financial kleptocracies and the Troika, as evidenced by the Brexit with the imminent release of the British from the European cage with the referendum in June.
to err is human, to persevere is diabolical, and Draghi and the ECB, while collapsing confidence in ‘Europe of bankers and finance saving function, can not continue to defend a wrong monetary policy, as it did today at the end of the council of monetary policy, which was held in Vienna, with rates remain at current levels or lower for a long time.
Dragons should take note, that the plan to purchase public and private bonds by 80 billion per month (Quantitative easing), which will continue until March 2017 until the Governing Council see an adjustment in the inflation path compatible with a return towards the goal of just below 2% a year, has not achieved the desired goals, so it’s failed with the modest economic recovery hampered by weak outlook for emerging markets.
the alchemy of the ECB, which has lifted the Eurozone GDP estimates in 2016 to 1.6% (from 1.4%), while for 2017 confirms the growth to 1.7%, while it is It has been filed down to 1.7% from 1.8% the previous forecast of GDP for 2018, with “the revised inflation outlook slightly higher to reflect the light of oil price increases to + 0.2% for the 2016 (previously estimated at 0.1%), 1.3% for 2017, 1.7% for 2018, are no longer enough.
If Draghi and the ECB, have the great responsibility of avoid breakage of the European model, they want to give a positive signal, are obliged to announce an increase in ECB interest rates, leading to 1% at year-end, following the Fed’s wake, to fight deflation and to restore confidence savers. (ADUSBEF)
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