The ECB Can Stop Buying Debt If the Eurozone's Bailout Slush Fund Is Allowed to Buy It Instead
Filed under: incredible things central bankers actually say.
European Central Bank council member Athanasios Orphanides said the bank may be able to stop buying government bonds if Europe’s rescue fund is empowered to purchase debt.
The ECB initiated its bond program “to address market dysfunction that hampered the monetary transmission mechanism,” Orphanides said in a Jan. 14 interview in Frankfurt, a day after ECB policy makers met. If the European Financial Stability Facility “were to buy government bonds, and that improved the functioning of the monetary policy transmission mechanism, that might render some of the ECB’s non-standard measures no longer necessary,” he said.
If the European Financial Stability Facility a.k.a. Massive European Bailout Slush Fund is already allowed to issue debt, why should it also be allowed to buy it? Fuck it, why don't we take this all the way and let it both issue AND buy its own debt? That's what we do here in America and it seems to be working just fine.
And you wonder why Germany is pissed, I'd be pissed too.