Well, believe it or not, the younger generation is extremely socialistic. Just tell them they will get something for nothing and they are on board. I suppose this is what we get for telling them to pay for schooling that they cannot find a job with. Now in Switzerland, they pushed for an actual vote on Universal Income where they will get a monthly payment of 2500 Swiss Francs paid to every citizen, for their whole life, no matter where they live, and they do not have to work to get anything nor did they ever have to earn anything. This is more than most people earn in retirement check after a lifetime of work. The solution, just give’m the money now. Why work for it? Seems like a waste of a life. They just want to cut to the end. This is the legal way to just rob your neighbor so you do not ever have to work.

Well, the proposal to guarantee a minimum monthly income of 2500 Swiss francs lost 76.9% to 23.1%. It could have, over time, lead to scrapping unemployment, social and pension payments, but it would have been in a dead-heat race with bankrupting the state, which probably would have came first. It was promoted by Daniel Haeni and Enno Schmidt who are really out of touch with how an economy even functions. This same idea has been talked about in Canada and the USA.

The European Central Bank (ECB) will start buying corporate bonds as officials’ stimulus program announced in March. This will broaden the Quantitative Easing expanding it to a new asset class in their desperate struggle against deflation. The Governing Council, meeting in Vienna, left the main refinancing rate at zero, the deposit rate at minus -0.4 percent, and as a component of its asset purchases of 80 billion euros per month, the ECB will begin buying corporate bonds beginning on June 8.

This type of stimulus is at least far better than buying government debt. Governments do not create jobs that truly contribute to economic growth because government produces nothing. Unfortunately, buying the corporate bonds from bankers will only means they are relieving the banks of paper they do not want. The ECB is hopelessly fighting against the head wind of deflation because they do not control the fiscal side of the balance sheet. That means which they try to stimulate the economy, we have the European Commission plotting against the economy by attempting to enforce taxation and raise taxes at every possible turn on top of creating a Byzantine system of serious over-regulation that prevent business expansion and formation.

The superficial view of how this will stimulate the economy is always good for a bounce as people trade within the noise of a market defines by resistance and support. However, the long-term prospects to this actually reversing the trend or “stimulating” anything is hopeless.