The Chart of the Week from the zerohedge:
There is little new in the chart and it has been reproduced many times before, yet it still strikes the 'Wow!' cord for me. Now, back in 2010 (here) I argued that the Euro area will have to print ca EUR 3 trillion to get itself out of the pickle jar. The US - with a much lighter problem load than the Euro area - USD 2.3 trillion on the printing side alone, ex other measures, already, and climbing.
1 comment:
Presumably the ECB has not 'printed anything like 3bn euro in QE. So, I assume when the US Fed starts to tighten the EC will still be in recession - Euro will fall vis a via the dollar, importing inflation - BINGO - the ECB will increase interest rates to compenste - more of the same OR is this too simplistic??
DKM
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