Posted Dec 10, 2016 by Martin Armstrong
Mario Draghi, extended the European Central Bank (ECB) $ 1.74 trillion bond purchase program to support the economy by nine months to at least the end of December 2017. This is far longer than most economists had expected. However, the monthly volume of currently €80 billion euros will drop to €60 billion euros from April 2017 onwards. In total, a further €540 billion euros will be pumped into the market. However, there is still no indication that thie will have any inflationary influence. All its appears to be doing is slowing the collapse buying bonds the private sector does not want.
According to German newspaper the Frankfurter Allgemeine Zeitung (FAZ), the decision of the ECB to expand its bond purchases was objected to by the Bundesbank President Jens Weidmann. The newspaper reported that Weidmann had expressed objections and not voted. The Bundesbank did not wish to comment on the report, reported Reuters.