by Justin Spittler
Europe’s central bank just fired the “bazooka.”
Dispatch readers know governments have been using extremely reckless monetary policies since the 2008 financial crisis. In an effort to stimulate their economies, they’ve borrowed and printed incredible sums of money. For example, the Federal Reserve has created 3.5 trillion new currency units since 2008. The Fed has also held interest rates at unnaturally low levels. This has made it extremely cheap to borrow money.
• The European Central Bank (ECB) cut its key interest rate on Thursday…
Its key rate is now negative 0.4%.