The European Central Bank is buying bonds in the Eurozone with freshly printed Euros. That is what Federal Reserve did here, printed money and is fixing to do again. With the many European Bond markets being pushed past tipping points, the ECB purchases are keeping these countries from breaching these barriers. You can read the entire article in Barrons.com.
This crisis is not being caused by reckless Hedge Fund Managers or speculators driving up the costs. The Natural Buyers are not only not buying the bonds, they are selling and unloading the bonds. The ECB is the buyer of last resort.
The QE2 from the Federal Reserve which lasted from last November through June funded the US Federal Government deficit and effectively lowered the value of the dollar and made it appear that our Gross Domestic Product had increased. Politically a lot of manuvering is happening that it will take the news media and the average consumer years to figure out.
Try to keep your sense of humor about you, this is a very worthwhile watch to understanding the difference between Quantitative Easing and Printing Money, because there is a difference.
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