THE DEATH OF THE EUROPEAN PRODUCTIVITY WITH THE COST OF THE EURO IS UNBEARABLE

The BCE is left without exits and he will have to reinforce the monetary stimulus, if the European Central Bank seeks at least to come closer to its inflation objective for the area euro, (that is the same thing that to want to activate the consumption and the productivity) he can only make a thing: to increase even more the monetary stimuli. That is the conclusion of more than half of a panel of 53 analysts consulted by Bloomberg that believe that the issuing institute will have to expand its program of well-known stimulus for its initials in English, QE. Ewald Nowotny, of the BCE, it has already assured that the Eurozone needs more expansible measures.  

This theory is to me to understand mistaken what needs the euro area is to lower the costs of its economic maintenance it is necessary to reduce the costs but without clipping expenses neither investments neither productivity that it is what the QE gets QE's the more it puts in circulation the BCE more financial costs he takes place and less productive benefits generate it is that simple the test is already more than demonstrated Europe has to begin to produce GDP in each one of their partners not to maintain the financial numbers in order but without any real support behind that it is it he makes the QE. 

It is "only question of time that (the BCE) he takes new actions", Alan affirms McQuaid, economist boss of Capital Merrion Group in Dublin that also adds that "the inflationary pressures continue being attenuated, and unless a dramatic ascent of the price of the raw one takes place, something that seems not very probable short term, the BCE won't be able to arrive to its inflation" objective that is located lightly below 2% in rate inter yearly. This theory is a madness how an economist can to request that they go up the costs so that goes up the inflation, what needs the economy of the UE, is that goes up the consumption and the export and this causes the ascent of the inflation  

The Council of Government of the BCE will meet this week in Malt, in one of the two annual meetings that the organism habitually maintains outside of its headquarters in Frankfort. Their 25 members (the 19 governors of the central banks of countries that have the euro like currency and the 6 members of the Executive Committee that Mario presides over Draghi) they will announce on Thursday at 1.45 o'clock (Spanish peninsular hour) his decision about the types of interest that one doesn't wait however that it contains novelty some, it is evident alone it would lack them to go up the interests of the poverty and of the unemployment so much economic as industrial that the UE suffers, 

And it is that, although 8 of each 10 economists consulted by Bloomberg consider that immediate changes won't take place in the stimulus program, they are already more than the half (56%) who they consider now that there will be movements before it ends up the year. The percentage of those who consider that he won't be necessary to wait to December it not even arrives already to 30%. Asked specifically on the purchase program of active, 81% of those that believe that there won't be changes in the QE, they affirm that this will be continued when it arrives September of 2016 (it dates initially foreseen for their death), and 42% also considers that the rhythm will be intensified the one that the BCE eats up the debt of the Eurozone, and that at the moment it is located in a volume of 60.000 million monthly Eurus, more than a fourth part he believes that a reformation of the QE will add new assets to the list formed at the moment by debt of the public sector (from January of 2015), guaranteed funds of active. 

The effects of the QE so far, are devastating, the BCE has bought near half trillion Eurus in debt under its program of QE, while it maintained the types of interest near the zero, and it injected near 400.000 million Eurus in long term cheap loans to grease the private banking. In spite of it, the general index of inflation in the Eurozone was located in -0,1% in September, and the underlying inflation (that excludes the variation of prices of food and energy) it was located in 0,9%. This means that in fact what is making the BCE is to thoroughly give money lost so that the civil society and companies of euro area, some eat and the other ones don't close the doors, I break wind neither some work neither the other ones take place. 

And if the impact of the QE on the inflation doesn't seem clear, its effect on the rate of the euro in the international market of foreign currencies seems also to be passing the idea very slowly it was that the euro you devaluates the quickly most possible thing but there is no way, the international market he has mounted a very lucrative business with the euro for them the euro is a financial product of triple “A” that he gives some alone very good benefits with its change disproportioned the QE that come out to the market every month the only thing that they make so it is to buy debt which another time is redoes again by the same states and the market the repurchase, with the guarantee of being endorsed by the BCE to inclination and indirectly of the program QE. 

After being depreciated with stability in the first compasses of the purchase program of active, the unique currency has not stopped to be appreciated and to today half-day it was changed by 1,13 dollars, in front of 1,05 in the month of March. The European debt continues growing facilitated by the low costs that it is the only thing that has made the program QE to facilitate that the states stay without working and without prospering its productivity at all. The UE dies for indigestion of Eurus one cannot think of a productive industrial reactivation if it is much easier to create debt to the states to sustain its social expenses and its political operation. 

 The millions of Eurus of the QE should not go neither to the banks neither the debt purchase they should be used to put them in circulation in projects of productive investment I believe that although I am not lover of it of a nationalized production official type that work that reduces the unemployment takes place and that it is through this consumption channel that arrives to the economy because if one doesn't make these thousands of millions they are hooked this way in the banks and in the sovereign debt and the society neither he finds out and the private company neither with the result that neither have recovery neither rise the inflation because neither it is manufactured neither anything is bought tangible alone you speculates.