ECB's Mario Draghi has run out of magic as deflation closes in

http://www.telegraph.co.uk/business/2016/09/08/ecbs-mario-draghi-has-run-out-of-magic-as-deflation-closes-in/

Large parts of the eurozone are slipping deeper into a deflationary trap despite negative interest rates and one trillion euros of quantitative easing by the European Central Bank, leaving the currency bloc with no safety buffer when the next global recession hits.
The ECB is close to exhausting its ammunition and appears increasingly powerless to do more under the legal constraints of its mandate. It has downgraded its growth forecast for the next two years, citing the uncertainties of Brexit, and admitted that it has little chance of meeting its 2pc inflation target this decade, insisting that it is now up to governments to break out of the vicious circle.
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"It is abundantly clear that Draghi is played out and we're in the terminal phase of QE. The eurozone needs a quantum leap in the nature of policy and it has to come from fiscal policy," said sovereign bond strategist Nicholas Spiro.
Mr Draghi dashed hopes for an expansion of the ECB's monthly €80bn (£60bn) programme of bond purchases, and offered no guidance on whether the scheme would be extended after it expires in March 2017. There was not a discussion on the subject.