Last week, Mario Draghi gave a speech in which he tried to give a balanced impression of what the ECB intends to do in the coming months.
That did not work out.
The market thought that Draghi was planning to stop printing money slowly. As a consequence, rising euro and falling stock markets.
Misunderstood
At the ECB, they immediately hit the stress. One day later, the ECB announced that the market had misunderstood Draghi's speech.
Continue to print with patience and perseverance
ECB economist Peter Praet told the Wall Street Journal yesterday that the ECB should continue to print money with patience and perseverance. Because inflation is even less than 1% in the relatively well performing Netherlands.
The ECB remains committed to reducing the value of the euro on our savings accounts. The savings rate will remain at 0% for the time being and the ECB will continue to print hard money.
Every year at least 2% final loss
That goes without saying at the expense of the ordinary savior. The money on our savings account is less worth at least 2% (inflation + tax) each year.
That is a definitive, non-returnable loss of at least 2% each year.
How to protect yourself from falling purchasing power?
In any event, make sure you have a part of the savings you do not need for the moment in physical gold and / or silver.
These are the only forms of money that a central bank can not print.
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