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Money For Nothing And Their Bank Deposits Are Free (And ECB Still Can’t Generate Inflation)

This is a syndicated repost published with the permission of Confounded Interest. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

There seems to be an inability of Central Banks to generate inflation. Take Mario Draghi  and the European Central Bank.

This morning, ECB head honcho “Super” Mario Draghi pulled a Captain Obvious press conference.

(Bloomberg) — Mario Draghi signaled the European Central Bank probably won’t stop its quantitative-easing program without tapering it first, indicating that the stimulus is likely to run past the currently scheduled end-date of March 2017.

“An abrupt ending to bond purchases, I think, is unlikely,” the ECB president said in a press conference in Frankfurt on Thursday. A sudden stop “is not present in anybody’s mind.”

Thank you, Captain Obvious. None of us were expecting a sudden stop of Central Bank QE.

Europe has an inflation rate of 0.4%, below the ECB’s 2% target for inflation.

ecb2p

The US is having better success … at getting near 2% inflation (defined as Core PCE growth YoY). But the US is still only at 1.7% (still below the 2% target).

corepceyoy

With low inflation and near zero cost of funding for banks, we have seen an explosion in non-interest bearing deposits at the big banks in the US.

freemoney

It truly is “Money for nothing and the bank deposits are free.”

And “All Quiet on the Western Front” on inflation.

kinopoisk.ru

kinopoisk.ru

 

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