ECB Considering Printing Another €750 Billion – Trustnodes

ECB Considering Printing Another €750 Billion


ECB balance sheet, December 2020

Chatter is in the air ahead of a December 10th meeting where ECB is considering extending its bond purchases by 12 months.

That would bring the program into the middle of 2022, adding another €750 billion to a total of €2 trillion to be printed in the next year and a half.

Executive Board member Isabel Schnabel said that purchasing debt through the middle of 2022 is one option that will be considered while Latvian central bank governor Martins Kazaks said he would support such a decision.

Apparently some officials who are happy to extend it by six months are willing to support a 12 month extension, beating market expectations as most where pricing in an extension to December 2021 with another €500 billion printed.

Governing council members however seem to think that next year may be too soon to cut off the program, so are willing to extend it to avoid economic uncertainty.

That’s while inflation in the eurozone is at minus 0.3% as the velocity of money plunges with Europe facing a potential deflationary trap.

The currency has appreciated significantly against the dollar even while ECB has a bigger balance sheet (pictured) than the Federal Reserve Banks.

Negative interest rates are now making their way into retail banking, something that may be spurring bubbles into housing and especially American stocks.

That data does not go into inflation measures, creating potentially a false picture on just how well fiat is holding its purchasing power.

Many therefore are trying to hedge with bitcoin due to its finite limit which can lead it to benefit from the trillion dollar printers in Europe and the United States.

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