Just as we pointed out explicitly yesterday, ECBQE will 'not' provide the inflation-expectation-lifting hope [3] that every talking head proclaims as its raison d'etre... just as FedQE did not. We noted previously that Draghi's actions would likely send the most deflationary signal ever to the world's policymakers [4], and sure enough European 5Y5Y inflation expectations have dropped 10bps from yesterday's highs and round-tripped to the levels seen before Draghi unleashed the money printing machine.
Draghi - we have a problem...
[5]
What we expect...
[6]
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Of course - in reality - QE was never about any of that - it's all about stawks stawks stawks and wealth creation for 1%...
