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Meanwhile ECB Monetization Continues: €51 Billion In Sovereign Bonds Purchased To Date, €4 Billion In Past Week
The ECB has announced its weekly Term Deposit Auction to be held tomorrow will be for an incremental €4 billion, bringing the total variable tender to €51 billion, compared to last week's €47 billion. This simply means that as of Monday, €51 billion in sovereign debt has been monetized by the central bank. As always, this is a liquidity circle jerk, in which the auctioned deposits are eligible collateral for any other ECB credit operations, thereby not having any liquidity-reducing impact whatsoever, even as more Spanish, Portuguese and Greek bonds are purchased by JCT.
From the ECB:
[T]he ECB will carry out a quick tender on 22 June at 11.30 in order to collect one-week fixed-term deposits with settlement day on 23 June. A variable rate tender with a maximum bid rate of 1.00% will be applied and the ECB intends to absorb an amount of EUR 51 billion. The latter corresponds to the size of the Securities Markets Programme, taking into account transactions with settlement at or before Friday 18 June. The benchmark allotment amount in MROs takes into account the liquidity effect of non standard measures, assuming an unchanged size of the Securities Markets Programme and full sterilisation of this amount via the above mentioned liquidity-absorbing operation. Fixed term deposits held with the Eurosystem are eligible as collateral for the Eurosystem's credit operations. The ECB intends to carry out another liquidity-absorbing operation next week.
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So why again are we all so damn cocksure that these Keynesian policies won't work? I can lose a lot of credibility with clients waiting for things to do what they're "supposed" to.
Oh, it will be declared that it worked and everybody will rejoice. Except that the cost will be very high (it already is) and your purchase power will be decimated by either inflation, taxation or both.
As I've thought before, they've managed to pull off their manipulative games so far, whats to stop them from doing this indefinitely? Nothing seems to go wrong for them. What if anything puts an end to this?
I'm not too coksure that Keynes would endorse these policies-- the actions we are seeing take Keynes philosophies to the extreme.
That being said, just look at Japan's decade-plus experiment in ZIRP/QE as a signpost-- and remember, the country had the benefits of about $15 trillion in internal savings and booming trade as tailwinds. Now tell me how much the Nikki Index has gained since 1990...
If your clients want nominal gains have them buy Zim stocks.
Never underestimate the power of nominal gains.
As Dr. Ruth explained, things always look bigger from below.
The question is, who knows the difference between nominal and real? If we are talking the status quo....
"Are they going for it?" Asked Barry. "Are they buying nominal gains with a debased currentsea?" "Do you doubt the all powerful Fed Chairman?! Muhahaha!" "Why must you refer to yourself as such?" "You call yourself Supreme Chancellor?" "I am!" Barry was stung at BS' question. Rubin interrupted them, "Knock it off boys, we have work to do. Where's Larry?" "He fell asleep in the Oval office again. I couldn't wake him up. I tried." "Put a Coke under his nose and yell 'Ramp Job!'" Said Rubin. "Works every time."
"What if anything puts an end to this?" - an educated population. I will not hold my breath.
Physical constraints put an end to this, but it happens so slowly that nobody notices the slow train wreck.
You're right, the pigmen want an educated population like they want angry mobs in the streets. Pass the morphine.
The powers that be are down to one-trick-pony status (print baby, print) until they pull the final rabbit out of their hat.
Martial law in whatever flavor they can convince an increasingly desperate population to swallow. Get ready ZH'ers to be hated for being right and being prepared. While I may talk about enlightenment and awareness, we (meaning everyone here on ZH and elsewhere that are beating the drum and disclosure and proper repair) have the illusion of two choices.
1) Get involved, get active, get moving towards helping our fellow citizens of whatever country we live in to awaken to the coming threat. We must act, not react. We must move forward or endlessly retreat.
2) Batten down the hatches. Unless you live in some totally isolated part of the country no one knows about (unlikely because when TSHTF everyone will have the same idea) this survival strategy will FAIL.
From where I sit, we have one choice. Make change happen by everyone pulling on those unused oars we're sitting next to. We have no choice folks, only the illusion of choice.
Three, you forgot : Do Nothing. Nero fiddles, yadda yadda. Or did you mean "we" as the ones who by default won't choose this third? Don't actually know how many people in the know are taking action. Personally I've stocked up on gold, taught my kids survival and fighting skills and have looked for backup rural property but that's the extent of my preparedness. Many will take the Hunter S. Thompson approach, IMHO.
Are we the only ones saying "Print baby print!"? I ask in earnest as the only time I watch MSM is for a laugh and a chuckle or if for an accidental walk-by.
Man, I hope that one day soon, talking heads quote you daily.
MC squared today on the boobtube, "CogDis said the funniest thing, it made my milk jugs squirt! He said "Print baby print"!" Larry Kudlow responds, "Now that's the kinda line that gets the party started. Where's my blow?"
I'll pick choice #1, for whatever good it may do.
You reminded me of a good scene from the "The Lion in Winter". The character of Prince John is crying about how all action is useless, and it doesn't matter how they are going to die. Anthony Hopkins (playing Richard) replies, "When the fall is all there is - it does matter."
oh.....CD.
one trick? just one?
How many you have forgotten.
How about war, baby, war?
How about pestilence, famine, bomb your self, and Abe Lincoln Ford's Theater distraction methods? Mass deportations, oil monsters, hurricane oil winds, and all the political divide and conquer illusions necessary to make those happen?
one trick?
The pros have so many more whole bags of tricks.
All the "tricks" you mention revolve around, support or cover up one trick.
Print baby print.
the longer it goes on the faster it will come to a stop.
cognitive
I think they have already it all in plan
I expect ww3 soon plus a big terror attack before
they will use the oil spill as an excuse for martial law before then
it must be a dream come true for them if it was just an accident
don't expect it to be plugged anytime soon
On a lighter note, Welcome Back Melissa!
The CNBS producers have fluffed up her hair and pushed up her tits. Lookin good!!!
Euro dropping like an oil platform in the GoM
Wonder how much of the 4 billion was Spain's "successful" 3 billion euro bond offering last week?