Yep! For those of you in America who want our country to go socialist or communist, read it and weep! You have no clue what you are voting for, do you?
And the potential fallout for some of these maneuvers by the European Central Bank are exactly what The Don has been telling everybody about…We are getting creamed in the trade sector by policies of other nations who are not playing by the rules King Obama wants them to play by! And…The King does nothing while our manufacturing industry pays the price and our workers lose their jobs!
And when they lose their jobs, they get on the dole…many of them forever, and ever, and ever because “Welfare-to-Work” is considered belittling, not fair, dehumanizing, and just about anything else liberals can think of!
Americans, you just got a peek at what socialist monetary policy looks like, and it’s not pretty.
For all you kids looking for a free college education should Bernie Sanders make it to the White House, this is what you have to look forward to.
In Europe, where there is widespread unemployment, socialism is now taking hold in ways almost unseen before.
On Thursday, European Central Bank chief Mario Draghi announced a gargantuan stimulus and economic funding package to help mend Europe’s banking system.
Draghi raised monthly bond purchases to €80 billion ($89 billion) in Europe’s rendition of quantitative easing and lowered the prime borrowing rate to zero: All OK so far.
But then Draghi went a few steps further than any central banker has ever gone. The ECB will now be buying corporate bonds of European nonbank companies as well.
Of course, that raises all sorts of issues. Will the ECB be buying bonds of Airbus, which is Boeing’s largest competitor in airline manufacturing? That has the potential to effectively enable the ECB to give unfair advantages to Continental companies looking for financing.
And will German automakers like Mercedes Benz, BMW or Volkswagen be sellers of bonds? The funding costs of these companies could be dramatically reduced, enabling them to sell their cars more profitably than American or Japanese manufacturers.
The second socialist measure: The ECB will lend money to banks at zero percent interest rates, and pay them 0.4 percent of the amount of euros lent. So theoretically, if Deutsche Bank or any other bank in Euroland lends €1 billion, it will receive a stipend of €4 million from the European Central Bank.
That said, maybe Draghi is “feeling the Bern” and auditioning for a spot in Treasury in a Sanders administration.