ECB to stimulate Europe by taking its citizens’ money

From today’s Open Europe news summary:

Further ECB stimulus expected to aid flagging Eurozone economy

The European Central Bank is widely expected to announce further stimulus measures to aid the struggling Eurozone economy as it meets in Frankfurt today. Most analysts expected the deposit rate to be cut further into negative territory to between -0.4% and -0.5% and the quantitative easing programme to be expanded by between €10bn and €20bn as the ECB struggles to lift the Eurozone out of deflation.

Source: The Financial Times Reuters The Times Die Welt

One of the consequences of the demise of sound money is that government spending now is characterized as good for the economy. Imagine a society with sound money. What government would dare claim that taking the citizens’ money and spending it was a good thing? The citizens are that much poorer by the amount of money taxed. Yet this is exactly what the Keynesian mindset claims. Now the ECB is so far down the Keynesian rabbit hole that it sees nothing bizarre in considering that it take more of the citizens’ money in order to make them wealthier. Welcome to Nineteen Eighty-four.

Patrick Barron

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