1000 euros a month to each person over 65 years !

sexta-feira, setembro 05, 2014 David Barradas 0 Comments


Yesterday ECB cut rates & announced a QE program (ECB is going to buy ABS & CB’s*). The size is data dependent (ECB is going to buy ABS & CB’s). ECB has already engineered a substantial fall in Sovereign yields and now is weakening the euro. What is the impact.

I guess people who have savings/deposits are going to make zero & spend less & less
Inflation will go up a bit because the Euro is weaker
Companies will benefit because the funding is low & euro is weakening
Stock market should go higher (European Financials)

Is this going to revive the European Economy? I doubt only the weaker euro would help. Let's see how low the Euro can go.

The problem of the world is lack of demand. How to solve this problem? The ECB should give a check of 1000 euros for each European over 65 years a month. This would cost 100 million people over 65 * 1000 = 100 billion a month or 1,2 trillion a year

how did the ECB funded this? Print

why only people above 65? To not mess with the labour market. Until 65 you have to work to live.


More about this:


http://thoughtmeme.blogspot.pt/2013/11/pay-people-for-being-alive.html


*The Idea of a QE program is the person who sells their ABS to the European Central Bank gets some money and have to figure out what to do with the money. They might spend it or loan it eventually the money starts to move.

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