TQE: European political elites have adopted an Alfred E. Neurman What -- me worry? approach to the continents problems. Europe as a whole is experiencing a depression. Growth estimates have been reduced again. Because of weak demand, disinflation is accelerating (inflation rate falling toward zero) and threatens to become deflation (negative inflation rate, where prices go down; this throttles growth & jobs, because companies & households hoard cash, knowing that prices will fall). The European Commission & the European Central Bank have no meaningful plans to kick start demand, jobs & growth, much less repair the damage that failed austerity programs have wreaked in societies like Greece, Italy, Spain and Portugal. Why should those Eurocrats originate recovery plans? They have secure jobs for life with index-linked pensions, so their own livelihoods seem secure. They look at Japans 20 years of stagnant economic policy and say to themselves, Well, the central bank employees & the government planners did okay during that period.
Posted on: Thu, 06 Nov 2014 08:15:48 +0000
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