Chris Whalen* highlights the desperation to save the euro zone through a program of quantitative easing (QE) .. it’s all about trying to make huge levels of debt go away .. central bankers are now combining QE with low or negative interest rates to transfer wealth from savers to debtors .. it’s all about financial repression .. “In Germany and Switzerland, for example, interest rates on government debt are already negative, meaning that governments are confiscating money from bond investors. Sounds great, yes? But the only problem is that all of these QE programs by the Fed and ECB, and also the Bank of Japan, do not really address the core problems facing the industrial nations—too little growth measured in jobs and consumer income, and too much debt.” .. on the euro zone’s desperation: “The ECB bond purchase program is a desperate effort to stave off the day of economic reckoning in Europe via inflation and currency devaluation.” .. concludes by warning these policies are setting the stage for the next financial crisis.

LINK HERE TO THE ARTICLE

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