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ECB's Coeure Exposes Europe's Confusion Over Greece, QE, Oil & Deflation
And these are the 'smartest people in the room that the world is entrusting to save the status quo. In one brief interview, ECB's Coeure explained how lower oil prices are great for the EU economy (but that low oil prices hurt deflation and thus QE should be used to stoke inflation - and thus higher oil prices?) and then said discussions of a Greek exit from the euro are "meaningless," that "no one is preparing for the exit," and that "restructuring ECB Greek bond holdings is illegal." One wonders what he will do when Greece just decides to stop paying...
Bloomberg headlines...
- *ECB'S COEURE SAYS OIL-PRICE DROP IS GOOD NEWS FOR EURO ECONOMY (awesome!)
- *COEURE SAYS OIL PRICES ALSO A CHALLENGE FOR ECB INFLATION GOAL (wait what?)
- *COEURE SAYS EURO AREA IS NOT IN DEFLATION (oh ok so no need for action then!)
- *COEURE: OIL-PRICE DROP REINFORCES SIGNALS POLICY ACTION NEEDED (wait what?)
And then
- *ECB'S COEURE SAYS `TOO EARLY' TO CALL ON QUANTATIVE EASING (but you just said?)
Because...
- *ECB'S COEURE SAYS GREEK ELECTION WON'T SPEED DECISION ON QE (hhmm)
- *COEURE SAYS GREECE NEEDS THE EURO, EUROPE NEEDS GREECE (not sure the Greeks would agree)
- *ECB'S COEURE: NO-ONE'S WORKING ON A GREEK EXIT AT THE MOMENT (apart from the Germans?)
And remember...
- *COEURE SAYS GREEK DEBT HELD BY ECB CANNOT BE RESTRUCTURED
- *ECB'S COEURE: ILLEGAL TO RESTRUCTURE ECB GREEK BOND HOLDINGS
So - it may be illegal but what happens when Greece just decides to stop paying?
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*Bloomberg Reporter: Now you're just f*cking with me aren't you?
Clowns with crowns...
nothing more.
Multiple personality disorder at it finest....
Multiple personality disorder at it finest.... as demonstrated by the server dupe magic....
I bet most of you did not realize how well it pays to be a fucking clown these days. Was Greece ever really "paying"? PLease, you don't know the greeks if you think they were.
it's like a famous soccer player in brazil once said, after not receiving his salary for some months:
"they'll pretend that they are paying me, and I'll continue to pretend that I'm playing
it may be illegal but what happens when Greece just decides to stop paying?
Ask me ask me. I know I know. That's when Greece will default. Da dah.
ECB'S COEURE SAYS `TOO EARLY' TO CALL ON QUANTATIVE EASING
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hahahahhha! yeah, like ... suuuuuuurrreeeee it is!
When they're saying that kids, you is in some deep, deeeeep shit.
It's from the Hunter S. Thompson school of better living through the heavy use of mind altering drugs.....
'We see things as more gooderer than not worser....remain calm and do not resist assimilation, thank you that is all....now get back on those oars and ROW, damn insolent peasants!'
What if QE/ZIRP has kept oil artificially high in the first place and now that they are ending, oil is coming back down to where market equilibrium really is?
To what extent have oil prices stayed up (until recently) because of yield-seeking commodity (oil) warehousing trades in the face of ZIRP (a no-yield world) and QE (which creates demand for hedges against anticipated inflation)?
Now that QE is done (for now) and ZIRP is projected to end – to what extent are all those oil-as-collateral trades now being unwound - or at least new ones drying up?
In other words, to what extent is oil's plunge a demand issue and not a supply issue?
Demand being: real, utilitarian demand + non-utilitarian demand for financial security/inflation hedging purposes.
Even if a few shale companies go belly-up the technology and oil are still there and will be leveraged again when prices warrant. The Saudis can't "kill" that in the long run.
He is a confused boy playing with dangerous toys he doesn't understand.
Gartman prep his comments for him?
There's a lampost somewhere in Europe with this Guy's name on it
Somebody needs to remind Coeure that the "book cooking" by GSax to enable Greece to join the abomination that is the EU experiment was nothing if not illegal.
If Alexis Tsipras gets to form a government neither Coeure nor anyone else who's sucking on the EU teats will have any say on what's going to happen, illegal or not.
My hope is that when the derivatives unwind they will all be in the poor house.
That would be a very large number should that happen.
"Far easier to devalue" yes, yes?
Fuck the ECB!
that was hilarious
I just love this site. lol.
Yeah, illegal, so shouldn't have happened in the first place... Now, who is responsible for that mess ?
Responsibility and EU elites are not two concepts that fit together. Build a parasitic, socialist empire - award yourself fat perks, expenses, salaries and pensions - scurry away before the ponzi pyramid collapses or taxpayers wake-up and lynch you. Rinse, repeat ...
Do unto others then split.........Boxer Difi comes to mind, think Boxer will openly move to Israel? or just visit permenently or retire to DC or NY with the Hillary?
sounds like a good replacement for draghi.
lol
JFC, the farce is strong today.
Crude just fell out of its trading range and in 20 minutes hit $47.78 down $1.40 from earlier highs: Equities, do you read?
http://www.investing.com/commodities/crude-oil-advanced-chart
Obviously did not rehearse his talking points ahead of time. Probably screaming at some poor minion right now.
now if we could only figure out how to re-direct extremist violence against those who truely deserve it!
A shrinking Euro and a shrinking Eurozone are symptomatic of deflation. It will be a long road ahead for ECB.
http://www.globaldeflationnews.com/as-early-as-2011-ewis-analysis-warned...