We have no money so central banks give more money to banks

[polly7]

By Pete Dolack
Source: Systemic Disorder
February 8, 2015

It’s unanimous! The European Central Bank confirms that the only possible solution to falling wages and depressed spending is to throw more money at the banks and inflate another stock-market bubble.

The ECB thus joins the world’s other most important central banks in the hope that “quantitative easing” — a form of “trickle-down” economics — will somehow work despite having never achieved anything other than the inflation of asset bubbles, a benefit primarily to the one percent. Then again, perhaps that might explain it.

Instead, what is planned is more austerity — that is, more punishment. The other component of the European Central Bank’s January 22 announcement is that favorite term, “structural adjustment.” A euphemism used by the World Bank and International Monetary Fund when ordering an end to job security and social safety nets as a condition for granting loans to developing countries, this is now being applied to the global North. Near the end of his remarks announcing the quantitative easing, ECB President Draghi said:

“n order to increase investment activity, boost job creation and raise productivity growth, other policy areas need to contribute decisively. In particular, the determined implementation of product and labour market reforms as well as actions to improve the business environment for firms needs to gain momentum in several countries. It is crucial that structural reforms be implemented swiftly, credibly and effectively as this will not only increase the future sustainable growth of the euro area, but will also raise expectations of higher incomes and encourage firms to increase investment today and bring forward the economic recovery.”

Labor “reforms” are necessary to “improve the business environment.” In plain language, that means more austerity in an effort to boost corporate profits. In the question-and-answer session after the announcement, President Draghi gave revealing answers to two different questions: “For investment you need confidence, and for confidence you need structural reforms” and “it would be a big mistake if countries were to consider that the presence of this programme might be an incentive to fiscal expansion. … This programme should increase the lending capacity of the banks.”

Full article: https://zcomm.org/zcommentary/we-have-no-money-so-central-banks-give-more-money-to-banks/

[blkmusclmachine]

1. Too Big To Fail, versus Too Small To Matter

Guess who the 1% is, and guess who the 99% is...

[yurbud]

2. quantitative easing makes me suspect we're on the brink of a total collapse

It's a sign the assholes have run out of ways to play three card monte on the rest of us, and once austerity, bail outs, bail ins, and the like have run their course, the whole house of cards will collapse.

[polly7]

5. Yes, they're scrambling, aren't they? It's getting scary. +1000. nt.

[Diclotican]

3. polly7

polly7

And the worst is - it is the banks over the last 30-40 or 50 years, who have made it all posible - by bulding cards upon cards upon cards - all the way up to now - and if anyone say no to more loans and money into the scam - it all wil come crumbling down... to hurt everyone...

It is capitalism at it worst - when you build a scam out of the whole economy - and let the public pay the price for the banks misgivings and bad business model..

Diclotican

[polly7]

4. You're exactly right.

But those at the top who've skimmed it off will never, ever lose a cent or one night of lost sleep. They've made and safeguarded their 'trickle up' gains and yes, as the cards fall, those at the bottom will suffer more and more, until there's absolutely nothing left for them to lose.

Great post Diclotican.