European Central Bank Announces Insane New Quantitative Easing: LaRouche Says This Won’t Stand: Cancel the Thievery!
March 10, 2016 (EIRNS—The European Central Bank announced panic measures for vast asset inflation today. It cut its already-negative interest rates for bank money on deposit at the European Central Bank (ECB), from -0.3% to -0.4% Even more extreme, it announced a new series of four-year loans to banks, ("TLTRO II"), in which rates may go as low as the rates on the deposit facility, now -0.4%. In other words, the ECB will pay banks to take its loans,—they will pay back less than they borrowed!
"That’s a quick end to a whole history," Lyndon LaRouche responded today.
"This is it! This is not going to stand,—there’s no sense to it. Obama and the Presidency and so forth should say, this is it! Our only thing is, we say, this is it! We cannot do this! And Wall Street is going to have to pay for it. Wall Street will pay, because they owe the money! And they are going to have to pay what they owe, because their rape of the financial system is actual thievery. Well, cancel the thievery! And all we have to do is apply Franklin Roosevelt’s policy of the 1930s, and that’s sufficient. There’s no other way you can respond to that competently.
"These guys want to steal; they want to steal luxuriously. This thing goes back to a history: Dodd-Frank!"
The ECB also announced that its Quantitative Easing bond-purchase program will be enlarged to €80 billion per month, and expanded to include bonds from non-bank corporations, along with bank and government bonds.
"Put it out publicly, circulate it, and say that this is a swindle of everything,—God above all."
Georg Fahrenschon, the leader of the German Savings Bank Association, who strongly opposed these insane declarations, said that sooner or later, negative interest rates will spread to the point that banks demand money to keep customers’ deposits.
"They won’t do it," said LaRouche, "the banks will disappear!"