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?

Draghi’s incursion into fiscal policy | Gavyn Davies

Fiscal policy

Fiscal policy (Photo credit: Wikipedia)

This is an excellent article from leading macro-economic commentator Gavyn Davies, in the FT. Check it out!

via Draghi’s incursion into fiscal policy | Gavyn Davies.

Unless, I am mistaken, I am increasingly seeing Draghi at the ECB pushing Germany reluctantly into new territory. With radical monetary policy AND fiscal policy, the ECB can still save the Euro and rescue Southern Europe, including desprate cases like Greece, Cyprus and Portugal.

Thoughts?