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Salomaa's perspective: the Magician's hat pulled bad money is the eurosystem's a time bomb
The eurosystem potential joint responsibility for the implementation of the case, the ”bubble” distributed to EU citizens answered, write to state, doctor of science Markku Salomaa.Dr. Markku Salomaa, is not presented in the solution, how the European central bank created by the debt bubble treatment. Timo Hakkarainen

in Europe is taivasteli the italy's state debt development, but at the same time have closed eyes to the European central bank's monetary stimulus, which has created eurosystem giant bounced the money bubble.

none of the European leaders has not presented the way how the debt bubble is treated so that it does not collapse. At the same time when the collapse of the euro area economy.

the Subject is probably simply too large, that it could rise to the election theme in Finland. It is essential, however, that the problem will be eliminated.


the Old adage that debt is a brother when taken, a nephew when paid. A single man could not treat the economy as the European central bank, i.e. when the money is needed, it will be created from scratch.

the European central bank (ECB) balance sheet the corresponding reading of the national central banks gold reserves, cash reserves, foreign exchange reserves, bank deposits, banks discounted domestic bills of exchange, the national central bank rediskontatut bills, bonds and other domestic assets items.

Bill amount should not exceed the least of the balance sheet, the corresponding amounts, which should understand the central bank's currency ceiling. Money should not be issued more, what the 19 euro area countries economies the circular flow of real economic activity, are increasing.


Now the money has been issued many times that amount, what the real economy have increased. It is a threat to money's function as a social institution; therefore, its function as a means of payment and exchange values as a measure. When the ECB balance sheet liability amount is blown up like a balloon, but the equivalent has fallen like a pancake, the outcome is unpredictable.

the Eurosystem allowed the instruments are in operation you open in the money market, support measures and credit institutions minimum reserve requirements. Only those institutions that meet the mini of reserve requirements, can operate the approved payment instruments on the open money market and to get assistance.

in the case of Spain this was made from when the support was directed at the guarantee fund through the commercial banks. Between the national central banks for direct transactions is not subject to a priori conditions.


the European central bank ECB has carried out support you buy the normal katteellista bond program CBPP's framework (Covered Bond Purchase Programme), but the resort already 10. may 2010, including purchases of the market is also a precautionary program of the SMP framework (Securities Markets Programme). ECB announces weekly fixed-term deposits SMP liquidity to safeguard.

time deposits placed in either a week or three-month period. Weeks deposits known under the title of MRO (Main Refinancing Operations) and was originally a three month deposits under the title of LTRO, i.e. ”lotraus” (Longer-Term Refinancing Operations), whose maturity has been extended subsequently to three years.

a New instrument is introduced in the fourth year of the deposit TLTRO (Targeted LTRO) to commercial banks that invest in the real economy of private corporate bonds.


These ”deposits” will be created from scratch. They are a central bank creates electronic money. Banks pressed to respectively citizens of the swap instrument paper money.

the Bank's own according to the notification, the balance was 1. January 2019 the next. ECB was created by the monetary policy to adjust the ”ad hoc” fixed-term deposit accounts so that the amounts were varied mainly 233 470 million and 399 290 million between and deposit times have been most commonly 1 to 456 days, i.e. considerably more than three months. MRO-operations, the balance had been reset, but the LTRO operations the balance was 723 830 million euros, which was about the same as a year earlier.

the Direct purchase of CBPP1-program balance was 4 312 million, the CBPP2 programme 4 024 million and CBPP3 262 720 million. SMP-program balance was 72 981 million. Consideration of APP-bond purchases, the balance was 27 593 million, the government bonds purchase program balance 2 108 522 million and the corporate sector of the bond purchase program 178 385 million.

They make a total of 2 658 537 million, which is almost double in the year preceding level. In particular, there was increased government and corporate sector bonds you buy. In addition, the ECB has made the electric money Us dollar ”support purchases” for a total of 4 200 million, where, in turn, had significant growth.


society, doctor of science Markku Salomaa. Markku Salomaa

to safeguard the stability of the central bank declare that they are the purchase of ”sterilization” so that it will sell higher status of the bonds out with the corresponding amount, what it will buy in the weak status of the bonds. This may not, however, from public sources to verify, but it seems that this has not been the case.

the ECB gives the wrong understanding that this would be recycled, sort of the same money. It is seen quite soon, since president Mario draghi's 14. June 2018 notification, the ECB ”electronic money recovery” is not needed any longer and purchase programs terminated by the end of 2018 (28. December). The problem remains the huge debt bubble, which the post treatment is not any specific plans.


the Eurosystem's possible co-responsibility for the realization in the case of ”bubbles” divided EU citizens to answer. It would mean that public and private companies as well as banks debt to pay would be the eurozone taxpayers.

the power of money and setelistö amount of this drastic increase was the whole of the European economic and monetary union the financial system of the emergency work, when the idea was to prevent the collapse. The default guess was that setelistö increasing accelerating inflation contributed to cutting your debt-state loan capital so that the remainder is manageable and paid back.


the goal of inflation circumstances, the debt mountain would melt maybe in 50 years, if additional debt is not from the factory. ECB target inflation rate was 2 %, but Draghi indicated that it is accelerating in 2018 towards the end of 1.7%. Draghi's forecast for growth, the opposite is true. Gross domestic product in 2018, growth was 2.1 %, but decreased to 1.9 % in 2019 and further to 1.7% in 2020.

the Euro's external exchange value of the increase would be the only indication of the eurosystem's credibility improved, but it is not in sight. Expected the eurosystem, the recovery phenomenon is not noticeable, but on the contrary, if the euro plunged to a new financial crisis, it won't take to the new ”bill recovery”. As a consequence the system would collapse and the member states to introduce the old currency.


gross domestic product growth in the euro area was the lowest by a modest 0.3% respectively. In 2017, it was 2.5 %. Finland's growth started slowly; in 2015, it was 0.3 %, 2016 it was 1.5 %, 2017 it was according to the forecast of 3.1 %, but by 2018 it folds to 2.5 % and in the years 2019 to 2020, it remains 1.5%. Also inflation is on the move, as well the level of interest rates.

a Risk is a gigantic financial bubble which the outbreak would trigger hyperinflation, which hit all 338 734 000 euro area consumer economy. It would also lead to asset values collapse, deflation, which would undermine financial institutions vakuuksi. Deflation risk is the relevant factor and probably the key reason for big operations.

Also, the Bank of Finland's balance sheet was 47 722 million in 2014, but it was in the year 2018 by the end of the 121 697 million, i.e. it was swollen 255 %.

the balance sheet of the biggest ”liability” period is related to monetary policy operations denominated in euro liabilities 86 841 million, which were 15 392 million in 2014. Setelistö grew 19 758 million, when it was 16 548 million in 2014. These ratios describe how much the ECB has created a particular electronic money also the Bank of Finland on the tab.

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