QE Not Neglected But Not Enacted

The ECB on Thursday proved once again that it is enthralled by the theoretical monetarist dogma championed by its German masters at the expense of a real life economic crisis endured by the Southern members of the eurozone.

Mario Draghi, ECB president, said the governing council had agreed unanimously to take emergency measures if inflation falls too low. He is quoted by the Telegraph:

“There was a discussion of QE: it was not neglected.” 

However, interest rates have been left at 0.25% as inflation fell to 0.5%. This level is half that of the 1% “danger zone” highlighted by Draghi in the past.

The eurozone is now heading towards a protracted period of deflation which will destroy the economies of its Southern members, as they will be unable to service their debts.

The euro is the currency of mass economic destruction.