ECB unleashed QE in the curerncy war, who is the next?

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So the ECB unleashed quantitative easing (QE) in this currency war. After years of printing money at near zero interest the QE seems an antiquate “weapon” which was proven to be extremely ineffective, at least at reviving the economy. However, in my opinion the ECB this time did not have much of a choice. Its main objective was to weaken the euro, and for months it got away with jawboning without doing much. If this time the ECB did not come up with something the market would have reacted totally differently and probably today we would be talking about the euro rally. QE is basically a life jacket for the market, it prevents it from drawing but it doesn’t bring it back to shore. The immediate consequences of QE will be “bubbling up” of asset prices pricing-out the average person and making people that already own assets even richer (the 1% of the population). In times of crisis this move could have shaken up the markets and infuse some confidence, unfortunately the impact of this QE was weakened by a number of factors. First of all there is the Greek election looming this weekend, proving a good level of uncertainity and thereby preventing big investors to come to Europe with confidence. Moreover, just a week ago the swiss central bank just showed the markets that central bankers are no stronger than the market and that they cannot be relied upon too much. Another factor which I think is very important is that the lazy governments that form the eurozone now have an extra excuse not to implement the so much needed reforms as they rely too much on the ECB and Mario Draghi for a rescue. I am afraid they will be disappointed, just how much damage do we need to take before they will realize it?

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