IslingtonTribune

The independent London newspaper

Enriching the rich

04 January, 2019

• TRUE to his word, Mario Draghi has called an “end” to quantitative easing (QE), having bought 2.6 trillion euros worth of “assets” with printed money. The truth is that it has not ended, merely that no more assets will be bought: maybe.

Growth in the euro area has been low so where has all the money gone? It has gone the way of all money printing: inflation and lots of it. How to tackle the problem of inflation: raise interest rates. Not too difficult you might think when the starting point is sub-zero.

None of this will happen because all the money has gone to enrich the already rich and make it harder than ever for working people. People lucky enough to have assets in property, equities, art, classic cars and heritage bonds issued when rates were “normal” got the lot. Same in the UK, with added twists like Help to Buy.

Only a couple of Remainers would deliberately give a boost to asset price inflation while claiming to be helping people. So much money but so little to show for it and now that it is all gone the European Central Bank is left with assets, some of which are distinctly questionable. Someone must have seen it coming.

QE will end when the assets bought are realised, but this cannot happen because it would require a fall in the price of property and no government wants that.

If this wasn’t bad enough, the Labour Party insists we have to maintain a customs union with the EU. Joseph Chamberlain meets the Corn Laws meets Keir Starmer. A system where we collect tariffs on thousands of goods, including food, and hand all of the money collected to the EU.

Who would ever vote for that? Something else that Remainers kept quiet. High-vis is the new look for 2019, certainly in France, where they have had enough of the euro Ponzi. Super Mario’s response will be to restart the presses, which is the easy way out.

STEPHEN SOUTHAM
Mildmay Grove North, N1

Categories

Share this story

Post a comment

,