All the alarm lights are out there. The European economy is slowing down. Not a tiny but big steps. ECB President Draghi told the European Parliament the ECB is ready to relaunch the stimulus and bond purchase program.
This means that within a quarter of the ECB ending the bond purchases So let’s have a look at the problems the European economy is facing.
First of all, we see the problems at the economic motor of the European economy: Germany. Germany economy is slowing down. This comes partly due to the trade war between the USA and China. Germany is depending on the Chinese growth for its economic activity. At the same time is the German economy looking at big problems. It’s largest bank is technical bankrupted. Its collapse will simply blow up the European economy. With some fraud and rigging of almost all markets, it will not be too long before customers will lose confidence. Then a bank run is imminent.
Another problem is Italy. The country political elite is divided upon almost everything. With the exemption of political issues, we need to realize that the Italy economy is back into a recession. A small one. But there is no real economic growth happening.
Then we look at the problems of French. The second largest country of the European Union. The economy is dying. At the same time is the famous yellow vest movement making sure that the government will be unable to do anything of the much-needed reform.
Due to the elections of the European Parliament, all politicians will be busy buying votes. So let’s have a look who will be saving the European economy. Like last time it is the ECB. What will the ECB do? Yes, more of the same. Terrible monetary policies.