Is the ECB starting to massively print money again?

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Thu, 12/08/2011 - 00:24 | 1957245 simoniddings
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An ID is needed when you work in big organizations. It seems that a strict money policy by the European Central Bank is causing the euro zone to go into recession. The growth in Germany was lower. 

Wed, 08/17/2011 - 12:45 | 1569262 Joebloinvestor
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They never "sterilized" shit.

They are grasping at straws.

Wed, 08/17/2011 - 13:48 | 1569526 IQ 145
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"Predicting the future is real hard; especially the part that hasn't happened yet" A.) B.) C.) D.) it's a multiple choice question, feel free to guess.

Wed, 08/17/2011 - 12:35 | 1569215 Robslob
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Here we go again...everybody confusing market performance with the economy.

Let me help you out...production is where it is due to demand.

Printing more money into the hands of bankers does not increase production nor will companies fall for that one again.

Companies have borrowed tons of cheap money only to watch it be devalued as they don't spend it.

Companies don't spend it because they don't see any reason for growth unless it is growth from cutting which only kills demand further.

Grab a clue...laws of gravity are getting organization CB or other can fix the fact "people of fucking broke" and worse, their governments are even more broke.

Wed, 08/17/2011 - 11:38 | 1568976 PulauHantu29
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Thanks for posting this. I was wondering if this is just outright printing via bond purchases or if they were "sterilizing" the flood of money. It makes sense for them to increase liquidity since they fear a massive deflationary spiral secondary to the mega-massive Debt and Deleveraging. Even though it will result in seriou sinflation down the road, it seems they prefer a short term fix instead of "austerity".....mmmmm.

You answered my question. Thanks!

Wed, 08/17/2011 - 13:51 | 1569539 IQ 145
IQ 145's picture

Some day you may become aware of the question that you should have asked; and then you will realize that the answer is not on an internet blog; but I suppose you'll be happy enough until then.

Wed, 08/17/2011 - 11:31 | 1568948 Ivanovich
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If they're truly printing money, why is EUR/USD still rocking on?

Wed, 08/17/2011 - 13:53 | 1569553 IQ 145
IQ 145's picture

They're not printing money; they're paying the interest coupons on all those Euro denominated bonds with bubble-gum trading cards; so-no problem.

Wed, 08/17/2011 - 13:13 | 1569386 EB
EB's picture

It's only been one week.

Wed, 08/17/2011 - 10:39 | 1568777 brandy night rocks
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Wed, 08/17/2011 - 13:55 | 1569562 IQ 145
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Is English your first language? Do you have a first languarge?

Fri, 12/30/2011 - 05:30 | 2021154 Western
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It was actually pretty funny, encased in such a crystalline sarcasm it was nearly invisible.

Wed, 08/17/2011 - 10:28 | 1568764 disabledvet
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John Law did such a great job for Loius. Once more unto the breech!

Wed, 08/17/2011 - 10:18 | 1568738 Frog-And-Toad
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What's the best hedge against this (paper version)?


I am heavily invested in physical silver, but wouldn't mind gathering up some fiatcos in the process to add to my silver collection.

Wed, 08/17/2011 - 10:46 | 1568783 lookma
lookma's picture

What's the best hedge against this (paper version)?

See the first asset listed on the ECB's balance sheet?  Go look above at the first image.  Do you see it: GOLD!  Not silver.  Not paper hedges.

Seriously, this is not hard.  The ECB "prints money," but oh look, the most important asset on the Eurosystaem's balance sheet is now more valuable too - Euro gold is marked it to market quarterly.

Wed, 08/17/2011 - 12:42 | 1569251 EB
EB's picture

Freegold does nothing to quell the adverse effects on businesses of massive monetary base manipulation over the short to intermediate terms.  It simply preserves savers to an extent.  However, the manipulation hurts productivity as businesses must adapt to large fluctuations in available credit.  Thus, the potential standard of living for all is lowered.  Thus, Freegold is not a panacea.

Wed, 08/17/2011 - 13:59 | 1569579 IQ 145
IQ 145's picture

Another person who doesn't know what they're talking about, a.) and b.) doesn't think logically. Congratulations you make a perfect blog contributor!

Wed, 08/17/2011 - 14:26 | 1569718 EB
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Feel free to point out the errors in logic.

Wed, 08/17/2011 - 11:47 | 1569014 LawsofPhysics
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Again, if the EURO is marked to gold quarterly and they are printing more EURO, why is the purchasing power increasing relative to the dollar.  Especially since we all know dollars are being lent and printed to backstop the EURO banks?  Big contradictions here, plus the dollar is backed by one governement with a single, rather powerful, army.  This is not the case for the EURO.  Exactly what are you saying?  Looks to me like both dollar and EUROs will become some new world currency that will continue to be devalued against gold.

Everything points to holding physical gold as a good thing, regardless of the paper you use to purchase it.

Wed, 08/17/2011 - 10:52 | 1568816 Frog-And-Toad
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So you're saying that this sparkely metal is worth something?!? 

I thought it was just the stuff of pirates and conquistadors...

So, if I invest in this metal, can I eat it?

Wed, 08/17/2011 - 10:30 | 1568766 Paralympic Equity
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Long bank CDS, but sell them before the "event" because there will never be any event...

Or wait for 26th AUG, and short the banks from idiotic levels (courtesy of the no volume melt up)

Wed, 08/17/2011 - 09:50 | 1568672 falak pema
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Trichet is a "tricheur" Wow!

Do NOT follow this link or you will be banned from the site!