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Europe (In 2 Ridiculous Charts)
Consider: European stocks just closed at their highest since Jan 2008; Spanish bond yields hit a record low 1.803% and Spanish youth unemployment hovers near a record high 53.8%; Italian bond yields hit a record low 1.72% and Italian youth unemployment is at a record 43.3%. So once again we ask, why exactly does Europe need sovereign QE? WTF is it that lower rates will do?
Charts: Bloomberg
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:) Maybe Draghis pals want to make some moar
so instead of getting jobs Spanish and Italians youths have become fabulously wealthy independent bond traders ?
Every man a speculator!
Central Banks: We unemployed some folks.
The creditors to Spain and Italy seem pretty insistent on keeping up the value of the bonds they own, by hook and by crook. Mainly by crook.
"so instead of getting jobs Spanish and Italians youths have become fabulously wealthy independent bond traders ?"
Maybe they all get the EBT and "disability" for life. That's how we do it, anyway.
I guess daytrading made it to Spain and Italy....... /s
Draghi's pals want to get out of Spanish and Italian bonds, and need a large scale buyer to hold the bag.
It's hard to find someone willing to hold a huge sack of shit.....
They've been "QE'ing" for years. The fact that you and I don't get to know about it, who cares?
:)
Yes, quite.
I've wondered, ever since Draghi uttered "We will do whatever it takes" - takes to do what, exactly?
DavidC
Ah - make bankers richer?
You can bet your life that Spanish and Italian economies will grow fast enough that there is no chance of default in the next 10 years.
Debt in all Western economies is so high that there is no scenario that they do not default save hyperinflation
Manipulated markets make no sense.
it's not about lower yields it's about bailing out insolvent banks
This implies they get bailed out and are then solvent.
They are never "bailed out". It takes a constant bailing to keep them afloat. The problem was not meant to be solved.
WTF do Spanish and Italian yoots do with all their free time?
Playing with their iphone and enjoying hotel mamma.
So defaulting on employment is OK; defaulting on sovereign bonds is not. Got it.
Portfolio Rebalancing is Draghis new thing. How do you rebalance nothing? The unemployed don't have portfolios, are they meant to rebalance their foodbank visits?
Its about owning assets when SHTF. Low rates make it easier to buy shit.
If you pick the right assets and are careful you will tend to improve your survival chances.
You're not asking the right questions. What are current and predicted real (not nominal) interest rates? Will monetization and lowered interest rates result in unreasonable inflation? Is there slack in the economy that could be mobilized by easier monetary conditions? Do you really think that monetary tightening or a gold standard will improve youth unemployment?
The words 'real' and 'reality' are not allowed among the CB crowd.....
Want to see more ridiculousness in the world https://www.themarshallproject.org/2014/12/03/the-pentagon-finally-details-its-weapons-for-cops-giveaway?utm_medium=homepage&utm_campaign=site-placement&utm_source=featured-block&utm_content=1-112
And the amazing thing is that Spain's youth unemployment is still at 53.8% when 700.000 young Spaniards already left the country.
Might be because most leave after or during education so they weren't included in the first place.
another number that comes out with NFP is the number of people on disability ... another 44K ... 1.2 million past year ... almost 30 million on disability
http://research.stlouisfed.org/fred2/series/LNU00074597
Hats everyone
"why exactly does Europe need sovereign QE? WTF is it that lower rates will do?"
It's just the Rothschild Banking Empire fine tuning the amount of rent it gets from the various European economies for its money creation services. Don't worry about the Empire too much. They'll make up the rent (or interest) difference with some more QE (control P) principal amounts posted to their various global tax free accounts.
It's a well known principle that the goose will not lay very many golden eggs if ALL its feathers are plucked, especially in the winter. Spain and Italy don't have many feathers left.
print moar mexicans
When one realizes that ordinary people don't matter to governments and policy makers, everything makes sense.
It takes a constant bailing to keep them afloat.
This is the future of the Western world...print until the rest of the world says no more....when they quit using our fiats..that is the end of the game...I have always wondered if you used QE to just buy gold ..would the price of gold go up???? its just fake money....something to ponder after a fifth or two...burp
Germany won't do it so the US and UK will need to step in and "save" the day. If these currencies had their own currency we could afford to buy their crap and vacation there.
need moar Mickey D's in southern europe...
also, is there a Spanish version of Yellen who's family miraculously survived the Inquisition and Holohoax?
Does anybody believe the Spanish youth employment statistics accurately reflect unemployment ? Informal economy and fraud do not exist is Spain, right ? I am no saint myself, but I could not easily imagine myself working informally and claiming unemployment benefits at the same time, something that I suspect is not that uncommon in Spain. I read somewhere that hundreds of thousands of (illegal) Africans find work in the Spanish agricultural sector every year...Sorry, clean your stable before asking help from other countries. And btw, love Spain and Spanish people and have a lot of sympathy for those that really try hard and do not get there, but not for the other category that seems to be ignored due to political correctness. ( Ignoring this is also useful to put pressure on the harsh Germans that dare to insist on "austerity" ).
What you haven't read is the number of Spanish that have had Visa's approved to come work in the USA. Last I read like 700k
USA youth is taking incoming....and medivac is 2 years out
700 K Spanish had VISA's approved to work in US ? Over what time period ? Without that info your assertion means nothing. If you imply one year, I call utter bullshit.
These thing might be helpfull to the EU.
http://rt.com/news/211779-sanctions-counterproductive-germany-italy/
http://rt.com/business/211867-finnish-russian-nuclear-plant/
http://rt.com/business/211815-eu-russia-sanctions-relieve/
Referring to Mediterranean Countries ZH generally is committing one big fallacy in statistics & graphics: They assume "employees" and "taxpayers* in this states are the same.
The first one keeps the system running even better than the second one could ever do.
The rest of taxes are printed - with Germany as last lender of resort and it's rest-credibility based on lowbrow wage dumped employees in it's back, rotting infrastructure and for-everyone-in-Europe-social-systems bleeding to white (newest feature: Unlimited health-car-card not just for Romans, Greeks & Co., but also pseudo-refugees from everywhere - in short terms for everyone.