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European Central Bank Is Zombifying Eurozone Economy

July 26, 2017 (EIRNA)—Germany’s Die Welt has noticed that Mario Draghi’s announcement three years ago that the European Central Bank (ECB) was ready to intervene with "whatever it takes" to keep the euro stable, has big side-effects. The Draghi strategy of supplying unlimited money at zero interest has blown the ECB debt up to €4.2 trillion—equal to 40% of the entire combined GDP of the Eurozone countries.

"With this therapy, [ECB president Mario] Draghi has successfully anestheticized the symptoms, but not sufficiently treated the disease behind the symptoms... it increases the risk of bubbles,"

Die Welt quotes Commerzbank chief economist Jörg Krämer as warning.

Die Welt adds that many other economists are really worried about the surge of "zombies," that is, companies that only survive because kept alive by the ECB money pump. If Draghi increased the interest rates again, it would bring a disaster for many of these "zombies."