1000 euros a month to each person over 65 years !
Yesterday ECB cut rates & announced a QE program (ECB
is going to buy ABS & CB’s*). The size is data dependent (ECB is going to
buy ABS & CB’s). ECB has already engineered a substantial fall in Sovereign
yields and now is weakening the euro. What is the impact.
I guess people who have savings/deposits are going to
make zero & spend less & less
Inflation will go up a bit because the Euro is weaker
Companies will benefit because the funding is low
& euro is weakening
Stock market should go higher (European Financials)
Is this going to revive the European Economy? I doubt
only the weaker euro would help. Let's see how low the Euro can go.
The problem of the world is lack of demand. How to
solve this problem? The ECB should give a check of 1000 euros for each European
over 65 years a month. This would cost 100 million people over 65 * 1000 = 100 billion a month or 1,2 trillion a year
how did the ECB funded this? Print
why only people above 65? To not mess with the labour market. Until 65 you have to work to live.
More about this:
http://thoughtmeme.blogspot.pt/2013/11/pay-people-for-being-alive.html
*The Idea of a QE program is the person who sells their ABS to the European Central Bank gets some money and have to figure out what to do with the money. They might spend it or loan it eventually the money starts to move.
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