Quantitative easing (QE) for the eurozone, as recently announced by the European Central Bank, in the enormous sum of at least €1 trillion, will prove as unsuccessful as our own recent £375 billion of QE.
Ours amounted to £6,048 for every man woman and child in the UK. I never saw any of it, or received benefit from it, so where did it go?
The banks – which were supposed to lend it – simply kept it and used it to pump up the stock market, and repair their balance sheets.
If the banks had nobody to lend to before – and that was the rationale of QE – why would they suddenly have people to lend to just because they had another £375bn in their coffers?
Same for the eurozone, where 330 million people should benefit from €3,030 per man, woman and child, with just €1 trillion of QE, but they won’t.
The simple answer would be to put the money – as actual cash – in bins on street corners, or to throw it out of aircraft over major cities.
That way, the money actually goes directly into the economy, as intended.