Note to readers: please click the share buttons above
The European Central Bank, ECB, is at the heart of the failure to stabilize Europe’s economy since the 2008 global crisis. It is a central element as well in the institutional arrangement since the creation of the Euro that has allowed northern Europe economies and banks, especially Germany, to skew economic growth for itself at the expense of the rest of most of the European periphery, especially its southern tier.
In 2018 the ECB has announced it will discontinue its 30 trillion euro monthly subsidization of the financial system by QE bond buying, followed by an attempt to recover the more than 2.5 trillion excess liquidity injections (’free money’) it has prodced as a consequence of its QE program since March 2015. But with interest rates rising in the US, and the Euro economy growth slowing once again, it is unlikely the ECB will discontinue its QE for very long, if at all, and certainly will fail to recover the 2.5 trillion free money it has injected since 2015.
Europe’s financial system will thus remain on ‘free money’ life support for the foreseeable future. What follows is a major 9K word excerpt from my 2017 book, ‘Central Bankers at the End of Their Rope’, chapter 11 entitled ‘European Central Bank Under German Hegemony’. The ECB’s current chair, Mario Draghi–a member of the notorious ‘Group of 30’ biggest Europe capitalists, bankers and their politicians that determine Europe policy behind closed doors–is scheduled to leave in 2018. What will his successor do as Europe stagnates once again and the global economy slows and heads for another recession or worse?
To read the complimentary chapter on the European Central Bank from my book, ‘Central Bankers at the End of Their Ropes: Monetary Policy and the Coming Depression’, Clarity Press, August 2017, click here.
The original source of this article is Jack Rasmus
Disclaimer: The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible for any inaccurate or incorrect statement in this article. The Centre of Research on Globalization grants permission to cross-post Global Research articles on community internet sites as long the source and copyright are acknowledged together with a hyperlink to the original Global Research article. For publication of Global Research articles in print or other forms including commercial internet sites, contact: [email protected]
www.globalresearch.ca contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the
copyright owner.
