Just as fast as it was printed, it falls
EUROPEAN UNION (INTELLIHUB) — After the European Central Bank (ECB) flooded the E.U. with €1 trillion in newly printed fiat currency Thursday, ripple effects resonated throughout markets far beyond the eurozone sending investors into a frenzy.
Now, “Under quantitative easing, central banks” are creating “new bank reserves to buy assets from financial institutions. Central banks get bonds, and banks get money that they can in turn use to extend new credit to households and businesses. Such expansionary monetary policies usually weaken an economy’s exchange rate, which boost exports. The euro weakened to 11-year lows after the ECB announcement as European bond prices rose.”, reports the Wall Street Journal.
All of this is leading to political revolts from citizenry of the 19-member eurozone as unemployment rates remain at an all-time high. Not to mention experts wonder if the massive stagnation can even be broken, with Q.E..
Moreover, the general public is losing trust with all elected officials as a Mad Max-like scenario nears.
Germany’s Chancellor Angela Merkel is now worried about reforms, announcing at the Davos Forum recently that it’s “time to get our houses in order”.
No matter which way you slice it, pumping €1 trillion of fiat currency into the economy is not going to solve the problem, but rather intensify it.
Now some predict the Euro will slide to become equal with the U.S. dollar as the ECB’s maneuver is likely an epic failure, further scaring investors away.
“Investors predict the euro will fall faster against the greenback than the yen in the near term because it has more pressing factors driving it lower.”, the Wall Street Journal reports.
Only time will tell.
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Shepard Ambellas is the founder, editor-in-chief of Intellihub News and the maker of SHADE the Motion Picture. You can also find him on Twitter and Facebook. Shepard also appears on the Travel Channel series America Declassified. You can also listen to him on Coast To Coast AM with hosts, both, George Noory on “Chemtrails” and John B. Wells on the “Alternative Media Special“. Shepard Ambellas has also been featured on the Drudge Report, the largest news website in the entire world, for his provocative coverage of the Bilderberg Group.
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