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Why The ECB's QE Won't Work (In 4 Brief Minutes)
Given all the hints, promises, guarantees, and bets that have been made, the ECB better deliver quantitative easing on Thursday or the Swissnado from last week will be like a fart in a hurricane. But while most people believe that this time is different and Draghi will actually deliver more than simple rhetoric, investors are sceptical about its ability to actually reflate the eurozone's economy (and rightly so).
"We're not learning from the past," warns RBS' Alberto Gallo in the following brief 4 minute explanation of QE's inefficacy...
"when 'wealth' increases [via QE reflation of markets], only the richest few people benefit," which means the weakest nations like Greece or Italy (who need QE the most) will not feel the benefits.
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Euro is POS.
USD is POS.
Because you can't get out of debt by going massively deeper in debt when everyone knows you can't make ends meet today?
This is not really about money or debt, the important thing is growth and jobs.
QE will not bring about any of that bc only the .1% will see any of the money (and inflate assets with it), BUT it can buy policy makers some time which they may or may not use. The last 5 years they haven't used the time they bought.
disagree. It is about money and debt.
Because the relevance or efficacy of 'growth and jobs' tied to its capacity to pay off the debt, to whatever extent money supply and quality has distorted that debt
The idea is that you print money and increase the debt, but this new money finds it's way into the economy and brings about jobs and economic growth, so eventually you reach 'escape velocity' and you grow your way out of the debt you created with all those new jobs. To see how well it works , take a look at Japan. All this shit has been tried before, and hasn't worked yet.
That is a classic picture of Count Draghi-ula...
or can we?
I propose it will if we can print enough money to research and develop technology that will allow us to pull the entire solar solar system into a parallel dimension in which increasing debts actually improves economies...
https://www.youtube.com/watch?v=CsLhNxzwK1Y
... the officials of the European neoliberal economic empire may proceed to the last measure, which would be to remove the right of the eurozone countries to produce their own liquidity and be totally dependent on the ECB.
This guy is still advocating QE? FUCK YOU, THE BOTTOM 90% WANT DEFLATION!!
Bottom 90% want deflation!!
Even more so for the ones who do not have debt.
define "work" because qe works great for the maggot banker's asset book
Too much debt and no one wants to realize the losses.... b/c if they did, they'd be BK. The EU and their banks are a circle jerk of sovereign debt.
But nowhere near as much as the US last time I looked
Pigs and sausage Pigs and sausage
I say forget it, the arabs won't buy them and everyone else is broke.
ummm, time to talk about cutting the budget, but just don't hear that.
yea, it is a mess. too many at bottom end that would be fucked. so time for a robin hood moment and take back the riches the fuckers have stolen. robin hood with a twist-steal back the stolen money.
The ONLY thing that matters to us here on ZH, is WHAT WILL THE MARKETS DO? I don't give a fuck what the european economy does.... hell, i don't give a fuck what our economy does.... I just want to know WHAT TO BUY OR SHORT!!! The way it looks right now, you short equities, go long gold and oil(yes, i know... might be a little more downside but i think oil will def rocket back up within the next 2-3 months. I don't think we'll see the 30's.)
not with ya buddy. My fascination with finance, money and economics comes from following my enquiries into issues of justice and the abuse of power and language
Placing your bets based on someone elses tips is a sure way to the poorhouse. It might work occassionally, but if you aren't holding your positions based on your own solid convictions you're on shaky ground in a minefield.
Thanks for the tip. :)
...wait.
If you need to ask you ought not to be playing with the grownups. Its cunts like you that have fucked everything from here to hell and back
'Whatever it takes' is far more powerful than any QE, because there are no details in 'Whatever'. Everyone builds in their own minds and wishes as to what 'Whatever' is. An actual QE with amounts, liabilities, and methodology is like the Emporer's new clothes - a lot easier to see through.
Denmark needs to buy it all.
http://www.bloomberg.com/news/2015-01-19/denmark-cuts-deposit-rate-to-mi...
The ECB's QE won't work because the FED and BOJ's QE didn't work. We need deflation, not more inflation.
Irrelevant question. First define ‘work’? If the goal is to push stock markets higher (it is), it will likely ‘work’. It always has in the past. The bankers now are convinced they are god-like heroes for saving all the little people. No, they don’t give a s*** about income inequality. They firmly believe in the trickle-down theory. They are all 100% in the Keynesian camp and will remain so. If the QE fails to boost stocks, then direct intervention is next, like in Japan. There is no other way they can see to stall a total collapse. Delay and pray. Create more trillions out of thin air. How can anyone place bearish bets until the day arrives that the masses give up on the central bankers? When that day comes, look out below. Many of us will pile into the inverse ETF, but for now, economic suicide.
Proven won't work = Them doing it is 100% assured.
Maybe they already know that. Just keeps the bastards at the helm that much longer trying to hold their braindead child for another day.
QQE in the EU will "work" if they do it right.The right way is to undertake gargantuan stimulus projects to boost employment, and to finance it with Outright Monetary Financing. I mean projects like building huge lunar bases, antimatter production and spacecraft propulsion, massive EU-wide high speed train projects, a10 million man EU army, drafting the unemployed into the EU imperial army, a huge nuclear arsenal, ....... etc. They either need to go large or go away.
The only way for a QE-type of program to work for the "little guy" is to literally drop money into the spendthrift public hands. Think Heli-Ben.
A 10 grand check per head should do nicely. For starters.
As it stands now, the elite who get the QE stimulus just use it to gamble in the markets, and stocks, commodities, etc. rise (albeit with inflationary denial from the fed).....and the little guy gets reamed.
I am not advocating this course of action. I am only pointing out the obvious, and why any QE done anywhere in the manner that has been done is doomed to fail in it STATED purpose.
But I believe it has worked wonderfully well for its REAL purpose: i.e. for the .01%ers.
The liberals moan, groan and plead for QE, which we've seen only serves to pump up stocks and therefore the wealth of the rich. This is supposed to create a euphoric atmosphere, causing those who have been enriched to spend. When it doesn't work, the liberals (read: Krugman-ites) say the program didn't work because it wasn't large enough! When Pres. Reagan tried this 30 years ago, it was called voodoo economics by the liberals. Guess what guys? You can't have it both ways !
I say GRIP IT AND RIP IT, DRAGHI!!! AAAAAHAHAHAHAHAHHAA let's fire this Qe-Bong up and do cartwheels from one derivative star to the next!! We'll snort contango cosmic powder and ride Yellicorns-It'll be FUN!!!!!!!!
I don't hear anyone questioning the level of QE that is 'going to happen' Concensus on €500billion.
But am I the only person expecting Draghi to just talk a bunch of shit AGAIN, and offer QE with massive conditions????
Whatever he suggests, I suggest is already priced in with the current delirium. Anyone else feel the same?
World War is coming.
The writing is on the wall, motherfuckers.
Hedge Accordingly.
there is no money for that, and even less profit. no profit, no war. (who are you to read the writing on the wall? a Babylonian King?)
wake me up when the germans start sending their tanks to neighboring countries on 'peace keeping' missions...blah blah