In Germany, hashtag inflation is on the rise again. The ECB will have no choice but to monetize the eurozone's escalating sovereign debt. A recipe for further price rises.
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In Germany, hashtag inflation is on the rise again. The ECB will have no choice but to monetize the eurozone's escalating sovereign debt. A recipe for further price rises.
Combined with Germany's weak economic performance, it looks like Nixon-esque stagflation. Have they tried wage and price controls, yet? How about wasting a ton of money on a military buildup?
Have they done anything to keep it in check?
Debt is emitted to be monetized for, if we are willing to think of bureaucrats as naive, they are supposing that you are going to be able to produce that amount of richness over current levels, a growth that by definition of fiat must be paired with emission wich now has that production increment support. Of course they are not naive and they know they don't have to wait for growth, they can just print right away. In any of both cases, debt must be understood as emission.
If you ask them, they will only say that we're down 5 points. They won't say that it's still too much not to worry.
ECB isn't worried at all and thinks that it can repeat the same thing as 2008 when it needs!
Will they sell Euro bonds?
Or ones from Germany?