“ Dr. Jack Rasmus, is interviewed by Russia Radio host, David Kerans, on the European Central Bank’s latest move to inject still more money into the Eurozone banking system and economy last week. Rasmus explains why this latest injection, which includes the introduction of negative interest rates and ‘targeted lending’, will prove no more successful than prior LTRO I, II liquidity injections undertaken by the ECB since 2012. A Eurozone QE will ultimately follow, as these latest moves prove ineffective as well. Rasmus further explains why monetary policies of central banks worldwide mostly stimulate financial asset prices (stocks, bonds, derivatives, foreign exchange trading, etc.) and not the real economy. The monetary stimulus from near zero rates to banks, QE, and other money injection measures ends up either hoarded by banks, loaned to shadow bank speculators that invest in financial securities world wide, or are loaned offshore to emerging markets, Rasmus notes. Meanwhile, in Europe (as in the USA, Japan and elsewhere) real investment, jobs, and incomes for the majority fail to grow, prices for goods and services slow and trend toward deflation, and workers-households consumption relies increasingly on credit and more debt instead of jobs and income.’
Listen to the 16 min. audio interview at:
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