Re: Meanwhile in the Eurozone ...
Originally Posted by
Bruce
->
Assman surely it is quite clear to anybody what a load of cobblers that statement is.
Interest rates are one of the ways central banks have to to restrain or encourage growth. The trade war between China and the USA is causing global growth to stall and perhaps even contract. Central banks are reducing interest rates to try to stimulate growth
Australia's bank rate was reduced to 1% recently with another cut predicted before Christmas because growth has fallen to 1.4% - a figure which can be directly attributed to the US/China conflict.
The problem is that interest rates are already so low reducing them has a diminishing effect and other measures are necessary such as printing money (QE) or high government spending to kick start the economy.
Don't let Brexit blind you to real world financial issues, global trade is falling because of the battle between China and the USA hence the action of the ECB - nothing to do with Brexit I am afraid.
In other words Brucy, growth funded by debt?
As regards QE, remember Hitler did this just before Ww2
when he printed wheelbarrows of deutchmarks to fund the
GROWTH of manufacturing tanks and Uboats etc, at that time
german workers had to resort to wheelbarrows to take their
wages home? despite all this money being available the
workers bacame actually poorer!!
How do you explain that??
America is trapped in the same trap, they are presently in the
process of QE and are printing their way ( hopefully ) towards
eventual recovery from the lehman debacle?
Unfortunately for the rest of the world, excepting China, we
depend heavily on america for our growth and so will have
to support their deficit?
If Ozz is thinking of QE as you say it wont make sense if
you are not running a deficit?
Regards Assman!