According to a report, the president of the European Central Bank is pushing for a full blown and direct Quantitative Easing program, bending the arms of the Germans. This long awaited move could
In recent days, the ECB accelerated its SMP bond buying program especially with Italian bonds. This was a response to rising yields, as Unicredit had troubles.
But this may be only the appetizer for the real thing. According to this report by John Ward, Mario Draghi is now set for the big thing: buying bonds big time, without sterilizing them – American style QE.
Such a move would certainly stabilize the euro-zone, but may not bode well for the euro itself – creating money out of thin air devalues the currency.
EUR/USD is already falling sharply, and bounced at the 1.2720 support line. For more on the pair, see the euro/dollar forecast.
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