Another Central Banker Comes Clean… Buckle Up
by Phoenix Capital Research
ZeroHedge.com
02/27/2016
In the last month, we’ve had two major confessions from Central Bankers.
We’ve already detailed the first, which came from the Head of the Bank of Japan, Haruhiko Kuroda here.
The second major confession from a Central Banker came from ECB President Mario Draghi. A few days ago, Draghi gave a speech in which he said:
Very low inflation complicates the adjustment process within countries, leading to higher unemployment. It delays the rebalancing process across countries, hindering those that lost competitiveness prior to the crisis from regaining it. And if low inflation is unexpected, it raises real debt burdens making it harder for the economy to grow out of debt.
On the surface this seems like a statement of the obvious: low inflation or deflation makes your debts more difficult to pay off.
However, it is only when you take this a step further and realize that he is in fact talking about the bond bubble in Europe that you realize just why he is terrified.
The Rest…HERE
