“A very substantial degree of monetary accommodation is still needed for underlying inflation pressures to gradually build up and support headline inflation,”
Draghi: “we aren’t there yet”
“Political winds are becoming tailwinds,” he said. “There is newfound confidence in the reform process, and newfound support for European cohesion, which could help unleash pent-up demand and investment, if confirmed by decisive action.”
The economic and political illiteracy of the ECB's aristocrats is mind-blowing. These bigheaded, corrupt bureaucrats think they are able to control inflation.
The more they lower the rate of interest and the more money (stimulus) they use for buying bullshit bonds, the more uncertainty and instability they create . This could lead (anxious or cautious) people to save (or very evil: hoard) money and thereby push deflation.
But for this problem Keynes / Krugman / Draghi have a simple solution: print more money and lower the interest rates even more.
I am very curious about the future "European cohesion"...
