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European Bond Risk Plunges As Draghi Hints At Sovereign QE (Again)
Seriously!! Draghi utters a few words - all of which we have seen and heard a thousand times before:
- *DRAGHI SAYS ECB WILL DO WHATEVER IT TAKES, WITHIN ITS MANDATE
- *DRAGHI SAYS EXPANDED PURCHASE PROGRAM COULD INCLUDE GOVT BONDS
and EURUSD, European stocks and bonds get uber-excited...
European bond spreads tumbled...
EURUSD sliding back under 1.25
And stocks surged...
Charts:Bloomberg
* * *
As a reminder, here is what Draghi said about this in his own words...
December 2011 - ECB Press Conference
Question: Why is it so impossible for the ECB to act like
the other central banks, like the Federal Reserve System or the Bank of
England? Why do you not act more directly to help European countries by
buying up the debt on a massive scale?
Draghi: As I said before, we have a Treaty and the Treaty states what our primary mandate is, namely to maintain price stability. Also, the Treaty prohibits monetary financing.
I am old enough to remember that, when this Treaty was written in the
early 1990s, some of the countries around that table were actually doing
what you suggest doing now, namely some of the central banks of these
countries were financing the government expenditure of their governments
through money creation, and the consequences were there for all of us
to see. That is why, in a sense, this Treaty embodies the best tradition of the Deutsche Bundesbank, whereby monetary financing has always been prohibited.
So do not hold your breath!!!
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Are you not entertained?
How many times can Draghi masturbate to the same centerfold?
Algo's have short memories.
If anything is proven;
"ECB whatever it takes"
Is definitely a algo trigger.
not too mention that the VIX is being set up again to ensure 2050 ES and banker bonuses
The junkies hanging on every word of the central bankers are pathetic.
Central Banker claims he'll print money at every problem that arises, everyone believes him. News at 11.
Ancient greek theatre complete with chorus
"In many of these plays, the chorus expressed to the audience what the main characters could not say, such as their hidden fears or secrets. The chorus often provided other characters with the insight they needed."
just like the peanut gallery here at ZH !
Smells like teen spirit.... https://www.youtube.com/watch?feature=player_detailpage&v=hTWKbfoikeg
The Goldman Sachs bankers can’t make this thing -- the ECB’s European economic model -- work. And the reason is clear. And that is citizens of Europe and operations such as German business are not entertained by having their resources stolen in front of their eyes. You can’t make German businessmen take a hit just because the ECB and the EU Commission want to make political statements.
You can hear the desperation in their sovereign voices; this from Italy’s Beppe Grillo:
“We are not at war with ISIS, or Russia, we are at war with the ECB.”
Grillo is now beginning to prepare for a referendum in Italy on leaving the euro “as soon as possible”:
“We will leave the euro and bring down this system of bankers, of scum… We are dying, we need a Plan B to this Europe that has become a nightmare—and we are implementing it.”
Yes, yes, "whatever it takes"... to keep the "free money" spigot open to my friends....
wasn't it last week we heard rumors that 7 or 8 members of ecb said "enough"?
As we get to almost daily announces of new stimulus or threats of more stimulus, we are quickly approaching that interesting day when it no longer works.
I'm so fucking tired of this shit. I can't wait for the day when everything crashes when people finally realize exactly what a house of cards all of this QE is. The greatest wealth transfer of all time from the many to the few.
They can do whatever the hell they want. Who's going to stop them?
For all I know, this could go on forever. Since the idea is to take turns in money printing, none of the currencies involved will collapse.
It's just the little people at the bottom that are getting the shaft. It's not like they matter to those psychopaths.
They are not in control, you and people like you are. They can only use loans and credit to entice people to barrow, not to spend.
Its called supply side economics for a reason- they have infinite credit supply, now they just need to control demand. IE your spending.
Its the utility of money thats the question, the answer is demand for other countries currency. What demand do you have for euros? How about the rest of the world what demand do they have for euros? The rest are just games the powerful play on that real world demand.
The games are comeing to an end, that demand for european retail good are comeing to an end, sanctions on Russia killed european exports. Now Russia will ramp up its farms and factories and supply what sanctions have blocked. That demand will not return once the farms and factories are online. The euro is no longer needed to buy european food. This is to force the Europeans to sign and export treaty with the US.
Draghi should shut the fuck up. Forgive my language but it is PATHETIC.
DavidC
LULZ not like they know how to do anything else...
Fucking shameless.
The problem is NOBODY I mean NOBODY cares. There are approximately 17 people in the whole world who believe anything this guy says, and half of them are teleprompter readers on CNBC.
The central bankers use their printed money to control the world’s press. Let’s see if they’ll be able to control the world’s people. There’s a question of where we are now and where we are going.
The trend is that Draghi’s ECB plan, whether he likes it or not, is failing. The tide is turning against him as he digs the bankers’ ECB hole deeper and deeper…
I think this is like the out takes at the end of the movie, where they let you in on a few secrets and remind you that none it was ever meant to be taken seriously. the hero and the villain posing together laughing. draghi wants to be able to say truthfully, at the very end, c'mon we all knew it was never going to work, didn't we? we were just doing our best.
Some remarkable political tensions are going to arise at least in Greece and Spain (far-leftwing sitting in congress and secesions pushing), and don't wait for every italian and french to eat their soup quietly (for better or worse).
"Whatever it takes" maybe will be something outside the ECB "mandate" and maybe not available in derivatives markets.
I wish they were unable to take a single f****ing ounce. Gold is for people who produce something, not for these central dickheads.
More like 220/221 whatever it takes:
http://www.youtube.com/watch?v=iX3kxAA2L4Q
All Draghi has is talk. There are never any concrete details.
The Germans will never go along with QE.
Indeed. He is just bluffing as the ECB's mandate pretty much bars it from QEing. The more he talks, the less credible.
The European Civil War of 2017 will see the beginnings of an Islamic Caliphate staring in the UK and France. The civil war will be started by economic incompetance, high unemployment and uncontrolled immigration supported by socialists such as Joyce Thacker in the Labour Party.
THE WAR OF CIVILIZATIONS: THE ISLAMIC CALIPHATE IN EUROPE
http://eurocivilwar2017.wordpress.com/
"Liar, liar, pants on fire!"