European Central Bank injection of 60 billion

Amid pouring on the pages of newspapers trillions of 2008 announced by the European Central Bank injection of 60 billion. Freshly printed per month does not sound shocked. But if you want to understand the scale of intervention think that is approximately 1.5 times the GDP of Bulgaria. Or announced at least a year and a half of quantitative easing (QE), which is the Euphemism for the purchase of securities on the secondary market, the ECB will create from scratch what Bulgarian economy produces for 27 years.

Although massive, the intervention of the central bank there is no guarantee that it will achieve its objectives - to get the euro zone economy out of the mire of deflation and trigger growth. According to supporters of experiments monetary instruments to steer the economy, the decision comes too late and is too insufficient. While the US, UK and Japan quickly delivered orthodox values ​​of central bankers and started with printing even in the acute phase of the global crisis, because of the complex political games in the bloc of 19 countries already ECB took her years to secure political backing. Time during which disblansite between Europe by countries intensified further and the debt crises in the southern periphery nearly tore the union. Yet the amount of injection of just over 1 trillion. euro as a percentage of GDP is about 1/3 of what the US and Britain launched once.

But the worst, once the last major central bank include the mass printing is complete absence of an idea when and how you can get out of this phase. The apparent purpose of the exercise is everywhere the money to reach the real economy and to stir. Hidden - in many places is to devalue its currency to boost its exports by stealing little growth at the expense of their neighbors. But the reality is that unknown what the vast majority of the money just goes into creating new bubbles whose bursting could greatly hurt.