Source:Zero Hedge
We will present the following quick note Bloomberg without any commentary because it could well come from any post we ourselves could have written.
ECB Governing Council member Yves Mersch said that monetizing government debts "is tantamount to inflation" and "not feasible." To use inflation to lower the fiscal burden "would reduce incentives for governments" to tackle their debt burdens and "would raise the risks of even higher future inflation and greater output volatility. Uncontrollable wage-price spirals would be likely." Mersch said in a speech in Frankfurt today. He also added that you can not make the ECB as a "lender of last resort for governments" and that governments must live up to own responsibilities.
Link:
http://www.zerohedge.com/news/ecb-member-tells-truth-debt-monetization-beginning-end
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