Europe continues to deflate

ECB May Have to Buy Sovereign Bonds

VIENNA–With its key interest rates as low as they can go, the European Central Bank may have to buy sovereign bonds if the inflation rate remains low and economic growth weak over the long term, a member of the governing council said Monday.
“Interest rate policy has reached a lower zero bound, for all practical purposes. I personally don’t see the possibilities for further interest-rate cuts,” said Ewald Nowotny, head of Austria’s central bank.

The European Central Bank, like government operated central banks, has no way to issue fresh cash, they are broken fiat bankers. Hence, in Europe, Japan and the USA we get more money tied up in the interest repayment cycle and no fresh cash to accommodate growth.   This problem is simply Keynesian stupidity, there is no other name for it.