Saturday, January 21, 2012
Finally some good sense emerges in Europe
The European Central Bank is now doing what I have advocated. I suggested it buy bonds of nations suffering financial crises. To make this less obvious, it is loaning money to banks who in turn invest in bonds of these countries. Now if they would buy new bonds these countries might use for infrastructure and to inject new income and consumer spending into these economies, instead of the senseless wholesale austerity that Greece, Spain, Ireland, and Italy have adopted. This is often condemned as printing money, but surely some clever official could think of language to calm the superstitious.