The European Central Bank should retool its asset-purchase programme to fund a wave of new infrastructure spending across the continent, according to one of the world’s most powerful bond managers, reads Financial Times, 7th Dec 2016.
We didn’t expect to ever agree with BlackRock – but that’s the world we live in now. Instead of creating billions of new money to flood financial markets, the central banks and the governments should spend it on things which support investment, jobs and people’s incomes. It could be invested in infrastructure such as schools and hospitals.
Here’s a short extract from the article:
Rick Rieder, global chief investment officer of BlackRock’s $1.6tn fixed income business, says the ECB should avoid a “false choice” between continuing on its present course or tapering its existing programme, when it meets to decide monetary policy on Thursday.
The central bank has the opportunity to unleash hundreds of billions of dollars in new economic activity by shifting more of its purchases towards bonds issued by the various national and supranational organisations, such as the European Investment Bank, that fund infrastructure and provide trade finance, Mr Rieder said.
You can read the whole article here (click the first result in the list)
In the UK almost 12,000 people signed already our petition “Create money for people, not financial markets”. You can sign it here if you haven’t yet.
And in the Eurozone, more and more people are joining the “QE for people initiative”. Learn more about it and join here.