The ECB will lend to banks in the next two years up to a trillion euros to revive the real economy in the periphery of the Eurozone all to save the Euro and retain the power in Brussels that is crumbling at the edges. This, massive volume of long-term loans is even far greater than previously known. Europe is in very serious economic trouble. There is still no intent upon consolidating the debt and instead they continue to use band-aids when stitches are serious required.
So now we learn. Germany had a double-dip recession last year without telling us. This could soon turn into triple-dip after contraction of 0.2pc in the second quarter. German bond yields are pricing in stagnation as far as the eye can see. 10-year Bunds fell below 1pc this morning for the first time in history, and far below levels seen during the deflationary episodes of the Second Reich in the late 19th Century.
What began as a routine report before the Senate Finance Committee Tuesday ended with Bernanke passionately disavowing the entire concept of currency, and negating in an instant the very foundation of the world’s largest economy.
Europe’s economic recovery has stalled. The EMU policy elites took a fateful gamble that global growth alone would lift the eurozone off the reefs, without the need for serious monetary stimulus or a reflation package to ensure take-off velocity. Their strategy has failed. The Bundesbank says