Yes, The ECB Chief Economist Really Said It: “If You Print Enough Money, You Always Get Inflation. Always.”…(Got Gold!?)
by Tyler Durden
ZeroHedge.com
01/06/2016
Once upon a time there was a cute, if amusing and terribly disingenuous debate among those who have never actually traded but pretend to know finance, about what QE and “unconventional policy” actually was. “It’s an asset swap” they said, “it’s not printing money” they said.
We are happy to close the chapter on all those sophist hacks once and for all, with a painfully obvious, if stunning in its honesty, declaration by none other than ECB Executive Board Member Peter Preat, who earlier today said the following: “If you print enough money, you always get inflation. Always.”
The full context from Reuters, which reports that “money-printing plan has so far failed to drive up inflation” and touches on Europe’s odd fascination with never having a backup plan: “the bank does not have an alternative “plan B”, ECB Executive Board member Peter Praet said in a magazine interview published on Wednesday.
More details:
“I accept that our policy has not yet been successful: inflation in Europe has for a long time been at a very low level of almost zero,” Praet, the ECB’s chief economist, told Belgian weekly magazine Knack.
Praet said various factors, notably low oil prices and less buoyant emerging economies, meant it was taking longer to reach the goal of inflation of close to but below 2 percent.
“We need to be attentive that this shifting horizon does not damage the credibility of the ECB,” he added.
The Rest…HERE
