ECB opens a Pandora’s Box

On Thursday, the ECB announced unlimited bond purchases. The crisis states now have guaranteed access to new credit. Currently, there is great peace of the markets. Nevertheless, how long will the euphoria? In addition, what dangers of the ECB’s policy? The European Central Bank (ECB) has finally opened this week all monetary floodgates.ECB_2250753b The future in Europe openly with the printing presses directly debt financed.

Nothing else represents the result of the unlimited purchase of government bonds of countries in crisis by the ECB except to reduce their interest rates. With this purchase program the central bank, especially the political pressure for reform in Greece, Italy, and Spain or elsewhere, it will wane quickly. Here, the central bank has the letter and spirit of its founding act, exactly this is a bond-buying program.

It comes to exclusively monetary stability required. Only Bundesbank President Jens Weidmann, voted against this radical departure from the old Federal Reserve virtue. Officially, the federal government on the side of the Bundesbank president announced its much support. Unofficially, however, things are quite different. The Europe finally mutated with this decision to transfer union.

The political coup against the national sovereignty of the Member States have succeeded. Instead of the subsidiarity principle, which obliges each Member State ultimately, for their own political errors – such indebtedness and / or lack of structural reforms – assume their own responsibility, now is an unconditional solidarity that leads into organized irresponsibility.

The Germans have paid for more than a decade, a steep price for the economic recovery: First, forcing the economic unification shock wage restraint, overtime and structural reforms, the introduction of the euro. Nearly fifteen years is increased the purchasing power of German citizens.For comparison, in the European countries in crisis partly grew by more than 40%.

While in many circles, the fear of future inflation prevails, the massive expropriation of savers by the low interest rate policy of the central banks is already in full swing. This most insidious strategy of state debt. They also are shocked by the way; they work with a basic pillar of any functioning society. It is about sustained of the ownership savings for the uncertainties of life, for old age, sickness, and the descendants.

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