After the successful run of the Quantitative Easing in the U.S., and similar measures in U.K. and Japan, it seems the time is ripe for the Euro Area to do a Stimulus.
Several years ago, when the idea was first mooted, I understand both Mme Merkel and Mme Lagarde were thrilled at the idea of a Stimulus in Europe, perhaps capitalised the Dexia Bank, and SVPs and such like ideas. In the meantime, the U.S. offered the 'Open Window' in Europe, a role which Japan and to some extent England have also fulfilled. Now it is time for Europe to do a fully fledged Stimulus, be it creation of additional funds, purchase of asset backed securities, or whatever (or a mix) that may be suitable.
It is time for the parliaments of the 18 Euro Area member countries to start debating this issue, and relay their decisions to Germany. Through more countries joining the Euro Area and adopting the Euro as their Mother Currency, the population and therefore the currency needs of the Euro Area have grown. Somehow, the Maastricht Treaty has not given a clear understanding on this very important issue, therefore I believe a Sub Clause is necessary, to enable the creation of a suitable value of capital to displace the currencies previously used by the newer members. They cannot have taken their own currencies out of circulation without replenishment by Euro from the ECB. This needs to be done with great urgency.
I suggest that if the debating can be commenced soon, then maybe the whole circus can get moving with the printing of additional capital by perhaps end of February 2015. Choose a date which you consider auspicious.
Now that U.S. is seeing the first signs of Prosperity, with more jobs being created, record number of cars being purchased, and more people buying their houses once they are finally convinced the Recovery has been for real and prospects are improving all the time; likewise, the GNP of Japan shall grow with a Recovery from the Fukushima disaster, and now a great Stimulus and growing exports; China stands ready to commence expanded production for exports, it is already doing so for the home market; Africa, South America and Asia all seem gearing up for a bright future, with increased demands....The Euro Area must do what is prudent and necessary, and bless the Stimulus measures.
Durudarshan H. Dadlani