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What ECB QE Will Do For The World (In 1 Word & 1 Simple Chart)
Nothing...
- *DRAGHI SAYS TODAY'S MEASURES WILL BE EFFECTIVE
- *DRAGHI SAYS TODAY'S MEASURES WILL BOLSTER INFLATION
- *DRAGHI CITES SIGNALING EFFECT ON INFLATION EXPECTATIONS
Signal This!!
"Different this time?" or "Einsteinian Insanity"?
With The ECB set to announce a QE4EVA-esque bond-buying initiative within the next hour or two, we thought it worth looking at just what The Fed's balance-sheet experiment did for inflation expectations (the key narrative that is driving Draghi's decision) and economic growth (what every politician is demanding Draghi help with)...
The answer... Nothing!!
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150b/mth or riot
well someone is winning... it just isnt us.. time to blame the scapegoat banks.... meanwhile the real culprits are flying the world in perpituity on their g5's
QE is not about GDP. It is all about enriching the 1%'ers and large banks via asset appreciation. Jump on board, churn the money, buy some PM's, prep for the inevitable cluster F&*^.
Yep owning 50% of all the shit is not enough. Now they will notch it up to 75% with this QE program. We are gonna need a lot of guillotines at some point.
"A government big enough to give you everything you want is a government big enough to take from you everything you have."
"If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered."
-- Thomas Jefferson
http://www.washingtonsblog.com/2013/04/big-banks-attempt-secret-coup-aga...
Starve the beast. One way to kill it.
Slowly bleeding to death is more dramatic.
Dutch: If it bleeds, we can kill it.
Any wealthy readers out there who want to pay for a commercial Billboard campaign with that exact set of quotes on it ? Big, full size, side of the Highway Billboards ? that's what needed.
Love the quote but it wasn't Jefferson. check out monticello.org or snopes.com
I've been repeathing those quotes for years, to no avail... Sadly. There's so much propaganda out there that the masses listen to, and many believe the propaganda even if they feel like something's not quite right. I hope there's a special place in hell for the banksters, scammers, and the Federal Reserve Board (but then, I repeat myself).
We have arrived at that time.
Jefferson was not only brilliant, but unafraid to use 'conquered' in this context - and properly so.
No way a politicians phrases it like this today. :)
No we won't need that many, 100 or so should do the work needed.
Wait a minute.
WHAT ABOUT GERMANY?!?!!?!?!?!?!?
Simple. In any negotiation the party that has the least to lose has leverage of the party that has the most to loose. Germany has the most to lose therefore they will get the short end of the stick.
Stakes are too high, even those retards at Buba cant stop it.
QE could be about GDP were it accompanied by stimulating policies. By itself it doesn't do anthing for growth or inflation.
Printing will allow the banks to dilute the currency, continue to buy down the price of physical gold and increase the 1% to have 100% of all wealth model. Everything is going to plan.
The 1% is counting on the rest of the world still honoring
their ownership after the crash. They figure if the reset takes
zeros off the right side of the ledger, its all good. They are still in charge.
Then reset on a gold standard. Start the Ponzi up again later. All according to plan.
Assume they believe they will be able to hang on to their gold with their security forces in place? After millions have been wiped out, families broken apart by the economic fallout. Maybe they will. maybe the won't.
It already has done something
It broke the swiss euro peg
And maybe some more pegs to come
I personally believe that de-pegging was very significant; and all the consequences are not in by any means; we may look back on that event as pivotal.
My guess is, it is more about taking government bonds off dangerously under-capitalized European banks at a profit, than anything else.
-> nothing, just earning time.
What if it doesnt ?
Buy moar popcorn and Pabst.
it will, it is just the nature of the QE: hidding the loose...
QE is not for restarting economy or injecting money or any msm fucked sentence, it is just used to hide insolvency of banks.
Even better. The Euro is doomed; there's no use prolonging the agony.
"the key narrative that is driving Draghi's decision"
well, I definitely have to go away from this screen. I disagree. Draghi has one vote in the ECB Council. the key narratives are those that involve the national bank governors
hence my expectation that whatever comes out of this council will have some NCB signature, perhaps with more NCB "action". anyway, have fun and trade well
Did you read the "The Tradgedy of the Euro"; yet ? It's available on t he Von Mises Institute website, on the LIbrary page. it's a scholarly examination into the origin of the Euro and who it was intended to accommodate. It would be nice if you had some idea what you were talking about. Silence would be good, too.
Since you have only been here 1 week, perhaps it is yourself who should remain silent and not remove all doubt of your own ignorance.
Ghordius is a citizen of the EU, and as such his opinion is valued for its alternate veiwpoint.
Keep coming back.
I've been re-incarnated three times; I've been here since the first month of the blog. The EU has a lot of citizens; that 's not a sufficient qualification. Have you read the book I referenced him to ? Or are you a member of the non-reading critics club.
Trav?
Sat800
Nothing is more sure to keep a Man in everlasting ignorance than contempt prior to investigation.
There is room and value to all veiwpoints.
:)
I have read it. Fascinating. And I suspect it will one day be recognized as having been prescient. The Euro is doomed.
I have read it. Was not overwhelmed. The main purpose of the book was that the UK should not join the EUR
but if anybody wants to discuss details about the book, I have it ready, with annotations
There is [...] value to all veiwpoints.
Another "liberal" dumbshit? (In quotes, as this has nothing to do with true liberal thinking.)
Now please tell us all viewpoints are also of the same value.
Ghordius is not valued much by me, as his opinion consists of 50% wishful thinking and is almost always as lopsided as ekm1's, for example.
(from an ex-citizen of the EU)
Thanks for letting us know it is available on Mises, I wanted to read it but wasn't willing to spend >$200 for a used copy on Amazon.
Here the link https://mises.org/library/tragedy-euro
Think of all the happy bankers, though.
And remember, a rising tide lifts all yachts.
Unless the yacht is resting on the bottom already filled with debt, It's deck nearly awash in a sea of liquidity.
good point; the ones with holed bilges don't rise so much.
Is it a yacht now, or is it a private jet liner. I think a rising jet stream now lifts all luxury aircraft. I've got a balsa wood airplane kicking around somewhere is the kids toybox. I'll go get it now. liftoff!
Nothing.... but it buys you lots of friends....and votes
Hmm, I challenge anyone here to find buyers for Italian 10Y bonds at 2% yield in a normal market. The only buyer is the ECB if not the banks are all gone.
They just need to find another Belgium, You know how the game works.
83yr. old Widow; still has control over her ex-husbands estate; easy sale. But I am a moral person; not everyone is. Worse stuff gets sold every day.
Do for the world, or do for the world stock market?
1/2 pct on release of nothing should get another 1% when Draghi provides the lurid details
How long this euphoria will last?
I'd give it about 15-20 minutes tops
And that's in spite of the PPT firing on all cylinders
The fact that the BOJ bought all that stock last month is an indicator.
WHat a farce
oh, it will do something all right. TPTB will buy more of whatever it is we peons think we have left.
Nothing...but enrich the bankers. Precisely what it was designed to do.
END THE FED! http://endthefed.org/
The central bank bubble is topping out. Now crash already.
When you look at .gov's ability to borrow and spend for virtually nothing while the bankers line their pockets you have to say from their perspective QE is a smashing success.
What happens doesn't matter....we got to haz QE moar!
<- USD
<- EUR
Which wallpaper should I use to re-decorate my downstairs bathroom?
Both. Stripes can be nice.
I was hoping to decorate with one and wipe my arse with the other.
Just don't make a tragic mistake with your wallpaper paste.
(OMG I just lost all tact and taste...)
Recall back in November folks...the gold Algo test...the switch pullers are still very much in control.
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014...
More QE will be against Germanys will (rightly so). This could be tha last straw that breaks up the Euro.
Hang on guys, this ride is getting interesting...
Will some tell these assholes that QE will not spur the middle class or poor to buy goods and products to cause inflation like it did in the housing crisis. The simple fact of printing and buying bonds will not allow people to buy a mcmansion, take equity out, buy a gigantic SUV, 80 inch TV, dine out every day, build unnecessary addons their mcmansions and spend money on exorbitant vacations. PSST ... CENTAL BANKERS ... The middle class in generally do not have that kind of equity in their houses anymore. The middle class is tapped out and is dying. The game has changed.
it's waaaaay too fucking late for that. they'll understand our frustration when we show up on their front doorsteps.
Buyer of last resort, printing needs to be baught to give it a price. Central banks are now force to buy in order to give the rest of that script a price. The value comes from you accepting that price as fair in trade.
Without central priceing you would have to rely on the market. Middle class would have a say in priceing. Without a say in priceing what power do the middle class have?
QE is about repriceing at a level that would not be possable in a free market.
Man they are dragging this announcement out. Did Soros not wake up in time to put his trades on, or what?
"Nothing" is an understatement.
III LOL. "Less than nothing", a negative effect, is of course correct. Bravo, Panic Mode.
Wow ZH shriller than usual today, you woke up on wrong side of bed Tyler?
QE will do nothing for anyone but insolvent banks and governments. If they wanted to fix the economy, they would need to lower taxes and reduce regulations. I know that sounds cliche. But the details are pretty glaring. The GD standard tax deduction in the USA should be 50k, not 3k. Self employed and small business should have a standard deduction of 1 million. The way we chisel everyone is anti-productive.
well, at least it gives points to those that say that QE is deflationnary in essence, as the securities bought are removed from the shadow banking system, and not rehypotecable anymore. The EU knows this (http://ec.europa.eu/internal_market/finances/docs/shadow-banking/140129_...), so makes one wonder what game the ECB is playing exactly
It's already working.
"He who can destroy a thing, controls a thing." - Dune.
"He who can destroy a thing, controls a thing."----only if you checked your Aristotlean Logic at the door. Control involves more than destruction; this should be obvious.
You're right in that there is more than just the possibility of being destroyed to assume something can be controlled. Awareness. One must also assume the "thing" has a sense of mortality and that its tenuous existence is dependent on another. That "thing" must also have the will to "live" and seek avoid destruction.
Under those conditions, when that "thing" knows it can be destroyed by another it becomes obedient. Obedience to the potential destroyer is called "control".
This is fun. I didn't know DUNE had such philisophical content.
This type of control only works on submissive subjects. It does not work on people that adhere to a warrior culture, and would prefer to live one minute as a lion, rather than decades as a sheep.
That's true. But then that type of "person" doesn't meet the criteria of wanting to live but would, instead, prefer to die under other than their own conditions. Your exclusion is also true for those who wish to die just to achieve what they believe is a better life like our Islamic radicals seeking their 72 virgins. No "control" is possible for either.
Only if nailguns are the gom jabbar.
to fix the world, let all child around the world become economic agents, this way, everybody get its part of the cake...
seriously instead of giving money to banks, send checks directly to homes, like someone said, send every one 3000€ each, you will inject money to reel economy and put some inflation...
While you're at it, wish for a pony, and wish for a free pony for every child.
I'm addicted to Zero Hedge. This is the only blog in t he world that will publish, "what will the Euro QE do ?; NOTHING". Perfect.
ZH is very entertaining but technically Nothing is incorrect. QE will make a lot of very wealthy people a heck of a lot richer. Thats something to somebody.
I hate to admit I'm wrong and you're right; but you are. I was referring to the "mass news', one line summations to which we will be subjected. AS far as the economy, economic recovery, etc. it will do nothing; but I do not quibble. you are right. i stand corrected.
Im getting Long Guillotines
I'll tell you what it will do, it will pop the stock market. So we can cry and bitch about it or we can fucking make money from it. The choice is yours!!
Better warm up those helicopters, bitchez!
is 60 billion a month the "published" rate or the "real" rate? I've got a feeling that they are buying way more than 60 billion a month.
SELL EVERYTHING!
Even my gold ?
I wouldn't be concerned if it did nothing; QE concerns me because it distorts the market, inflates bubbles, stifles reform, ...
To all who still have their heads in the sand------
Does anyone really think that this mass monetization can go on and on without consequence? To date, all fiat currencies have had one thing in common - they eventually fail. But also to date, those failures have not happened to any major economic powers and have been isolated in time. While one country's currency failed through hyper-inflation, other countries were able to shrug off impact to their own economy.
Now consider the today's total integration and interdependency of the world's major economies. Such mutual dependency didn't exist before. NOW what happens when a major player fails? Will all the other economies still remain as unaffected as they were in the past? Everyone thinks this time will be different and this time they can maintain control. I doubt it.
not nothing....time is being bought. As precious a commodity as any other to the CBs.
Draghi gets his information from the same source as the president and CEO of amerika, so data and charts like this will have to make it to NBC or BBC to be considered.
defacto government:
https://www.youtube.com/watch?v=B9fi1H13120&list=PLD625892E1988E8B7&inde...
Reminds me of that epic Con Air line: "You know what my daddy taught me? ... Notin'!" https://www.youtube.com/watch?v=9a0kNAGIqE8
What did the central banksters learn from 7 years in economic crises? ... Notin'!