Final Word from Wednesday, May 25, 2016

Czechs are the most German-like of the Slavs, but this doesn't always carry over into financial affairs. While Wolfgang Schäuble rails on about how the easy-money policies of central banks are becoming more a cause than a solution to the problem, Czechs are increasingly embracing the revolving devaluation by the CNB. While German regulators complain about how negative interest rates are poisoning pension funds, Czechs are meekly accepting their low returns. While the German government threatens to sue if the ECB drops helicopter money, Czechs remain oblivious. Few have noticed that the cheap-money policies are acting as a direct transfer of wealth from the meek to the oligarchs. An example that everyone can understand: PPF used cheap money to buy O2 CR and then raised the price of a fixed line as part of internet by 333%. That's the opposite of helicopter money; it's suction-pump money being pulled right out of your pocket. [Czech Republic European Central Bank Czech National Bank Germany currency regime intervention]

Glossary of difficult words

frugal - sparing or economical as regards money or food;

oblivious - not aware of or concerned about what is happening around one;

to carry over into - to extend beyond the original area of application;

to rail (on) about - to complain or protest strongly and persistently about;

meek - quiet, gentle, and easily imposed on; submissive;

helicopter money - direct transfers to the private sector of money from a central bank;

suction pump - a pump for raising water or other fluids by suction.


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FS Final Word