Lord King says Eurozone is doomed while EU slides back into deflation - from TRUNEWS

(TRUNEWS) The former governor of the Bank of England, Lord Mervyn King, says the eurozone is doomed to fail in his new book.

Lord King claims in his new book that steps towards fiscal union will not quell problems in the 19-nation bloc, and could even tear it apart.

The Telegraph reported that Lord King warns of a looming “economic [and] political crisis” triggered by endless bail-outs, austerity demands and pressure from the “elites in Europe” and the US to create “a transfer union” to solve the eurozone’s woes.

Lord King has also called for the International Monetary Fund (IMF) to lead a debt-relief program in which countries can restructure their debts in a ‘fair way’.

Noting that this could slow growth and reduce spending as creditors adjust to the “reality that debts will never be repaid”, Lord King said this is “inevitable.”

“The underlying challenge is to move to a new equilibrium in which new debts are no longer being created on the same scale as before.”

EUROZONE DEFLATION

His comments came on the heels of a Eurostat report that showed that EU inflation dropped to its lowest since Jan. 2015 in February to -0.2% from +0.3% Y/Y in January.

This deflation indicts that the European Central Bank’s (ECB) quantitative easing (QE) program has failed to salvage the economy of the eurozone as promised.

The ECB’s QE program began in Mar. 2015, with €60 Billion/month in bond purchases, which to date has resulted in the monetization of over €670 billion in mostly German sovereign paper.

Zerohedge reported that they believe this instability will lead Mario Draghi to further increase QE in ten days, which will in turn create even lower deflation in Feb. 2017.

These woes in the eurozone serve as canaries in the coal mines of global central banking, and are likely to only further spiral the world into an economic system land-mined with negative interest rate policies (NIRP), cashless economies and centralized fiscal slavery.

(Below is a breakdown of NIRP across the globe)

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