September 23, 2016

ECB and other statist still believe the way to a better future is lowering the debt costs of governments.

Sir, Claire Jones writes: “Altering the capital key rule would relieve banks [ECB] of the need to buy as many German Bunds as at present and allow them to purchase more bonds from heavily indebted states, such as Italy. “ECB fears legal action will limit scope to extend QE” September 23.

Even after monstrous amount of QEs have not led to sustainable growth worthy to write home about, central bankers, bank regulators, interested government bureaucrats and many of their statist colleagues, still believe that keeping the cost of debts of their government artificially low, is a way out to the current problems.

I don’t! I believe much more that the future potential for jobs, and for decent retirements, is in the hands of allowing SMEs and entrepreneurs an equal access to funds.

And that begins by throwing the risk-weighted capital requirements for banks out on the closest garbage landfill, where it belongs.

@PerKurowski ©