Posted Jan 22, 2015 by Martin Armstrong
The increase in buying by the ECB from 50 to 60 billion is reflecting what we posted earlier. The massive contraction appears to be closer to 6 trillion Euros. The ECB clearly gained more support even from Germany for this is a far easier way to try to bailout members than politicians having to face voters.
Nevertheless, we see the Euro still falling back to par against the dollar. This is why the Swiss broke the peg for they could not continue to buy Euros in a free-fall. The increase in the amount from 50 to 60 will still fail to stimulate the economy and is really just another indirect form of bailing out member states without the political flak.
The ONLY thing that will work at this stage is to give up the idea of the United States of Europe and save the EU trade union before the whole thing melts down. Unfortunately, this is all now about support jobs in Brussels – not about helping Europe.