The ECB is blowing smoke in our eyes – Ambrose Evans-Pritchard – Telegraph Blogs

German Logo of the ECB.

German Logo of the ECB. (Photo credit: Wikipedia)

This is an excellent article by Ambrose Evans-Pritchard in the Telegraph. Check it out!

via The ECB is blowing smoke in our eyes – Telegraph Blogs.

Once again, the ECB cannot introduce proper QE, like the US, the UK or Japan – this is because of an effective veto from Germany.

So there are only a limited number of scenarios for Euroland:

  1. Continued meddling through, leading to prolonged deflation and Japan disease.
  2. A speculative crisis, which will trigger real QE as an emergency measure
  3. A speculative crisis that will lead to the breakup of the Euro

Thoughts?

One response

  1. Of the options listed by Dr Alf the fate of the Eurozone is increasing stagnation and bail ins plus some rope being afforded to speculators .

    So it will be a mixture of Dr Alf’s 3 scenarios but never quite a breakup of the Eurozone in totality.

    Those who wanted the EU in the first place only saw the EU as a stepping stone to more and more unions and eventually global governance.

    They have a Plan B in the Amero which will be a new currency to replace the dollar and the Euro.
    It has already been printed and minted and those who doubt this can still find a picture of Russia’s Medvedev on You Tube dated 2005,holding up an Amero coin.

    A crisis will at some point occur during which time both the dollar and the Euro will come under threat from people like George Soros and other currency speculators acting on behalf of those who wish to move to Plan B.

    We will then be told that the crisis needs extraordinary measures plus Cyprus style bail ins and after that the “play” will see the old “actors” moved,new” actors” moved into position and the stage set for the Amero.

    This will be theatre of great excellence that will surpass anything that the stage magicians Derren Brown and the American David Copperfield have ever done.
    The BBC will sell the transition in the UK and doubtless CNN,Fox and the European networks will do the same.

    The line that springs to my mind comes from the Godfather Trilogy “It was Barzini all along” because in this case it really is down to the man in the shadows who is known as the Pindar.

    In the meantime it is a case of smoke and mirrors or as Ambrose Evans Pritchard puts it so elegantly in the Daily Telegraph the ECB is blowing smoke in our eyes.

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