Das Kapital – ECB President, Mario Draghi, did as expected announce the continuation of his euro printing policy but at the reduced rate of 30,000 million per month into 2018. A move that may help avoid the bubble bursting before Draghi’s retirement next October.
Spanish Steps – the build-up of pressure within Catalonia came to head this month with unprecedented results. The month of October saw this part of northern Spain have a vote on independence, become an independent republic and then revert back a region of Spain again. The key issue being that the vote was considered illegal, by Spain and the EU, because Spain has a law that bans regions from leaving. So blocking any real regional independence moves no matter how strongly supported by the people. Surely a situation that would cause a national outcry if proposed for the UK.
Many would expect that such an outright ban would be an issue to be condemned by the UN or at least the EU. Apparently not. But then the EU seems particularly unwilling to accept regional splits or democratic decisions that go against its master plan .. A lesson for Scotland in there somewhere.
At the end of this month the European Central Bank (ECB) plans to review its stimulus policy for the Euro.
And ECB President, Mario Draghi, has promised to maintain interest rates at their current level of -0.4% “well past” the end of its current bond-buying programme. Now bond-buying seems like a sensible and prudent activity except it is simply weasel-words for providing cheap money to European corporations. Money that helps keep beneficiary companies – like Ryanair – in the Pro-EU camp.
The money is cheap not just because interest rates are set so low but also because it is being printed by the ECB. And it is being printed at a rate of 60,000 million euro per month!
So far the total new money created under the leadership of President Draghi has topped 2,000,000,000,000 euro (= 2 trillion). With that much money pumped into the system it is hardly surprising the European economy seems to be expanding – what else could it do?
To quote one of the comments posted today – It’s a completely unsustainable situation which will collapse like a pack of cards very soon because Europeans will realise that their money has been devalued by the ECB’s policy.
But despite some German banks getting worried the chances are that Draghi will have no option but to keep feeding the monster that he has created. So we will have no choice but to watch the euro balloon getting bigger and bigger while hoping to be far enough away to avoid getting hurt when it does eventually burst.
After The Final Countdown, Slip, Slidin’ Away and Go Now here is another one for our growing list of song lyrics that might well relate to our fraught relationship with the European Union.
No chance of any attempt by Jean-Claude Juncker or Michel Barnier to apply the lyrics of the Moody Blues 1965 hit –
We’ve already said “Goodbye”
Since you gotta go, oh you’d better
Go now go now, go now, go now
Before you see me cry.
Instead today we have them and their puppet parliament berating the UK for not agreeing to their one-sided demands. Pathetic.
Sadly our Prime Minister has repeatedly failed to take the initiative. A stance that the country so badly needs. Businesses in both Britain and Europe have been well aware of the June 2016 result for plenty long enough to prepare for the transition – and yet a weak UK position now offers the EU a further two years of much the same as before.
Why? When businesses would benefit much more from a clear switch-over to national independence as soon as possible. We really do have to Go Now ..