After almost two years of the quantitative easing program in the Euro Area, economic figures have remained very weak. Inflation is still fluctuating near zero, while GDP growth in the region has started to slow down instead of accelerating. According to the European Central Bank data, to generate 1.0 euro of GDP growth, 18.5 euros had to be printed in the QE, which means that €80 billion have thus been wasted almost every month!
This year, the ECB printed nearly €600 billion within the frame of asset purchase programme (QE). At the same time, GDP has increased by… €31 billion; even if up to the end of 2015 the ECB issued €650 billion during its QE program. Needless to say that the Greek debt is “only” €360 billion and there has been no chance of a relief, so far.
The question is where this money from the QE goes and who benefits from it. Clearly it is not the real sector, the so called Main Street of French, Italian or Portuguese cities (Greece is not under the QE program). European stocks are still weak, too, while stock exchanges in the USA are hitting their records. So, is the ECB serving Europeans?