So the European Central Bank has injected one trillion euros into the Eurozone economies, despite the articles of the Eurozone expressly forbidding it. I imagine this was at the insistence of the Germans originally. Needless to say the ECB has found a way around this, as is the wont of Eurocrats.
George Osborne today said that the Eurozone was following the lead of the British economy (£375 billion has been injected into the UK economy so far under the Government’s QE programme). Osborne also said that it was “excellent news for the British economy.” Really?
Doesn’t this all mean that the euro will steadily decline in value over the next year? It’s already at a level which hasn’t been seen for some time – 1.32 to the Pound. How can this be good news for the British economy? I make no pretence at being an economic expert, but if I were a British exporter I’d be viewing this QE programme with mounting horror. Not perhaps with as much horror as Swiss exporters at the moment, but even so.
Am I wrong?
