The European Central Bank Has Launched The Japanization Of Europe… And Now It Cannot Back Down

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Assessment: The Federal Reserve takes the reins again and leaves the ECB with the changed pace and the wrong policy. Despite runaway inflation …

The ECB is between a rock and a hard place

The ECB is between a rock and a hard place because it cannot take decisive action as states have become accustomed to an unprecedented monetization that has led the ECB’s balance sheet to be 81% of eurozone GDP compared to 37% of the Federal Reserve with respect to the US GDP.

“The fourth beast shall be
A fourth kingdom on earth,
Which shall be different from all other kingdoms,
And shall devour the whole earth” Daniel 7:2

If the ECB reduces its so-called expansionary policy, states like Spain, which has shot up debt by 230,000 million in almost two years and continues to increase the structural deficit, will not be able to withstand the slightest rise in rates.

On the other hand, if the ECB maintains its huge buyback program and negative rates, the inflation tax and stagnation may condemn the eurozone to a stagflation that some countries have already experienced in the past.

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