ECB Inflation Expectations Crash; Slashed By Half In Just 9 Months [Vanguard FTSE Europe ETF, iShares S&P Europe 350 Index (ETF)]

Share This Article
December 4, 2014 5:02pm NYSE:IEV NYSE:VGK

europeTyler Durden:  Back in March the ECB predicted 2014 inflation would be 1.0%, with prices rising to 1.3% in 2015.


Since then one can say that deflation has once again taken hold, and following two consecutive cuts to 2014 inflation expectations, moments ago Draghi just released the ECB’s latest set of inflation expectations.

In a nutshell: in just 9 short months, the ECB’s current year inflation forecast has been cut in half, with 2015 inflation also down nearly 50%, from 1.3% to 0.7%.

 

Of course, now that deflation is apparently stimulative according to the global Keynesian think tank, because plunging oil prices are supposedly a “tax cut” equivalent and will “force consumers to spend more”, this is good news right?

Well, maybe not. Because while Europe’s troubled consumers will indeed have greater purchasing power, deflation is now rapidly becoming the norm in Europe, as can be seen in the following “worst case” inflation assumptions used in the ECB’s latest, October, stress test.

Yes, the ECB did infact assume 1.0% inflation for 2014, and no deflation ever “because it simply just can’t happen.”

And remember: when it comes to inflation, the ECB couldn’t care less about the middle-class.

All it cares about is inflating away those trillions in Non-Performing Loans plaguing Europe’s insolvent banks, which when all is said and done, the ECB, aka Europe’s “bad hedge fund” will have no choice but to monetize.

This article is brought to you courtesy of Tyler Durden From Zero Hedge.


7 Best ETFs for the NEXT Bull Market

Read Next



Free Investing Ideas Newsletter!

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

Most Popular



5 WINNING Stock Chart Patterns

Explore More from ETFDailyNews.com

Free Investment Newsletter

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories