Wednesday, September 10, 2014

Money printing policy has failed because of this

I have long expected outright ECB QE, and we basically have that now, but I still think the ECB will move to explicit QE in the next quarter or so. Of course that won't 'fix' the real economy in the euro zone, but central banking easy money since 2009 has had very little to do with boosting the real economy and is much more about generating assets bubbles in the hope that it creates trickle-down consumption.

That this policy has failed is clear-the biggest beneficiaries since March 2009 have been the owners of capital (i.e., those who least need wealth gains and who tend to hoard, not spend, such gains) very much at the expense of the masses (i.e., those who most need income and wealth, and who tend to spend and not hoard).