QE is disinflationary because it perpetuates overcapacity and unproductive debt, yet it is massively inflationary on risky assets because the objective is to make rising government spending cheap. Hyperinflation created in financial assets as sovereign bonds artificially inflated
More QE from Draghi this morning because they don’t know what to do. They have run out of options.
— jill manfreddi (@jmanfreddi) September 12, 2019
The ECB is creating a dangerous bubble and should not cut rates.t.co/dWJhXjjfyr
Open thread @threadreaderapp :
— Daniel Lacalle (@dlacalle_IA) September 12, 2019