Is 1.2 Trillion Euros The Right Answer To The Wrong Question?

Good News Or Bad News?
Once upon a time something good happened for Europe.  The price of oil went down dramatically.  When the oil price halved in the last months of 2014, there was no way for the European Central Bank (ECB) to fulfill its mandate of keeping price growth close to 2 percent a year.  The ECB painted itself into a corner by targeting headline inflation, not core inflation, which excludes food and energy.  Left with no choice, the ECB announced on 22nd January 2015 that it would begin printing digital money in large quantities, ie, start Quantitative Easing or QE in the near future.  Contrary to popular myth, QE doesn’t fight ‘deflation’, it rather causes it by keeping zombie banks alive.  Why? Quantitative easing simply buries money in commercial bank vaults, by bolstering their balance sheets, when it is cash in circulation that is desperately needed.