Thursday, March 10, 2016

ECB Announces New Measures, and More

Asset purchase programmes

Expanded asset purchase programme

The expanded asset purchase programme (APP) adds the purchase programme for public sector securities to the existing private sector asset purchase programmes to address the risks of a too prolonged period of low inflation. It consists of
  • third covered bond purchase programme (CBPP3)
  • asset-backed securities purchase programme (ABSPP)
  • public sector purchase programme (PSPP)
Monthly purchases in public and private sector securities will amount to €60 billion.
They are intended to be carried out until the end of March 2017 and in any case until the Governing Council sees a sustained adjustment in the path of inflation that is consistent with its aim of achieving inflation rates below, but close to, 2% over the medium term.

Political Economy Research says buying Corporate Bonds is subsidising the rich and more cheap money for Banks is not helping small businesses and individuals but recapitalising Banks.

We also agree with Brian Denny of No2EU who says if you want to see what ECB solutions to financial insolvency looks like, study the strict conditions imposed on bailout countries such as Greece, Cyprus and other states. 

These include mass privatisation, abolition of trade union rights, pay cuts, vicious government spending cuts and massive structural adjustment in favour of monopoly capital.

As the left-wing Cypriot party AKEL pointed out the people of Cyprus are paying a very heavy price for the “solidarity” of its so-called friends

“The policies of the single economic governance on an EU level are destroying the sovereignty of the peoples and states for the sake of the interests of big capital,” he said.

Brian Denny is spokesman for

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