Gyroscopic Investing

Yes, the Krugmanite view is that the only way to save ourselves from the approaching debt crisis is to go even deeper into debt. 

It seems to me goofy that they are buying each country's bonds in proportion to the size of each country's economy irrespective of what bond yields are to start with. That kind of sums up the euro zone muddle though.

Much of the eurozone already has zero-or negative yields for 2-year bonds and Germany has <0.5% for 10year bonds. What's QE supposed to do in that circumstance? Back in the day, before monetary policy went mystical, bond buying by a central bank was a way to keep a lid on bond yields if and when it was necessary. The US and UK did that to cap yields for WWII and post WWII reconstruction. The ECB could have done something like and so avoided the Greece crisis BUT instead they do this now in a manner designed to be as ineffectual as possible. It will probably cause deflation and so make the Greek debt crisis worse than ever.

My prediction is that they are going to keep doing it again and again until they get the result they are looking for or destroy the Euro entirely.
I'm betting on the latter outcome, and apparently so is the SNB. 

goodasgold wrote: Yes, the Krugmanite view is that the only way to save ourselves from the approaching debt crisis is to go even deeper into debt. 

That is Krugtron the Invincible to you, sir!