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What Mario Draghi Said When Asked If His QE Will Unleash Hyperinflation
Without a question the best exchange during today's historic Mario Draghi presser, during which the ECB unveiled its own QE, was between SkyNews journalist Ed Conway who first asked Draghi which is more important, the Flow or the Stock - a key argument we had with the Fed when we said back in 2012 that the Flow reigns supreme when we forecast open-ended QE 6 months before its announcement, only for both Goldman and the Fed to agree subsequently and for Citi to conclude that $250 billion in central bank printing, i.e., Flow per quarter is necessary to avoid a market crash - but more importantly, explicitly asked if Draghi's money printing overture will lead to hyperinflation.
The exchange can be found 1:12:45 into the press conference:
The transcript:
QUESTION: There's a big debate at the moment as to whether quantitative easing what matters most is the flow or the stock: the buying of assets or what is already held on the balance sheet. I'm curious as to where you come out on that particular debate?
And second of all what would you say to those who are concerned that when the ECB buying up bonds, electronically printing money, whatever one calls it, is the first chapter in a story that leads inevitably towards hyperinflation. What is your response to that?
DRAGHI: On the first point, the way the introductory statement reads it says that both things are important, the overall amount but also the scale. The scale of these purchases, the monthly flows are quite meaningful as it is meaningful the overall amount.
The second question, well the second question I think the best way to answer to this is have we seen lots of inflation since the QE program started? Have we seen that? And now it's quite a few years that we started. You know, our experience since we have these press conferences goes back to a little more than three years. In these 3 years we've lowered interest rates, I don't know how many times, 4 or 5 times, 6 times maybe. And each times someone was saying, this is going to be terrible expansionary, there will be inflation. Some people voted against lowering interest rates way back at the end of November 2013. We did OMP. We did the LTROs. We did TLTROs. And somehow this runaway inflation hasn't come yet.
So the jury is still out, but there must be a statute of limitations. Also for the people who say that there would be inflation, yes When please. Tell me, within what?
And so yet another central bank confirms the key tenet of central bank dogma, that only the Stock matters, is now null and void and monthly flows are indeed "quite meaningful" - and with Citi having calculated the bogey of $200 billion per quarter, there should be no surprise that between the ECB and the BOJ this threshold is safely reached. In fact, one can be assured that never again will central bank flow, as in money printing, be less than roughly $70 billion per month among the three biggest money-printing entities.
As to the hyperinflation question, Draghi's answer is simple: we have now thrown the kitchen sink at the deflation problem and there has been no inflation (he conveniently forgets to mention that the world is now caught in a vicious spiral in which every single central bank is printing money just to export deflation to its peers, with more and more printing necessary each year just to stay in one place). In other words, just because hyperinflation hasn't materialized so far, it never will.
Or, as Bernanke would say: "Hyperinflation is contained."
As for Draghi's comment at the end, one can respond just as snydely: for the people who say printing money will create growth, yes "when" please. And for those who say that money printing will lead to economic improvement, "tell me, within what?"
As for Draghi's "statute of limitations" comment, he may be right, but one thing is also becoming clearly obvious: as central banks are poised to monetize a record amount of debt this year, 7 years into the "recovery", and as the amount of eligible collateral dwindles to a point where the functioning of the entire market is becoming impaired (see the TBAC's complaints from the summer of 2013), the moment of "hyperinflationary containment" is coming to an end.
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I think the problem, Mario, is when it starts...there is nothing you will be able to do to stop it.
HAHAH DICKHEAD LIVE...RIGHT NOW!!
https://www.youtube.com/watch?v=GbR6iQ62v9k&feature=inp-lt-yti-01
If more is being destroyed then created, there will be no inflation.
Black holes always win.
.... "somehow" inflation hasn't come yet. LMAO.
Ya, here's how. Let me educate you, you lying POS Draghi.
All CB's own the markets. All CB's manipulate Forex, PM's, derivatives, and Treasuries.
Now stop lying. Stop being such an arrogant, condescending asshole. Admit you're broke and insolvent, so life can continue for 99% of the planet, you selfish prick.
f'n parasite
http://www.zerohedge.com/news/2014-05-24/federal-reserve-admits-truth-internal-memo-prices-continue-rise-between-3-and-33
Excellent article wherein the Fed Res admits to inflation. So, yeah, no inflation so far...unless you like to eat.
Remember when QE was explained as a way of decreasing interest rates to spur economic growth? Where did the part about decreasing interest rates disappear to? Now that rates are ridiculously low on their own they jump 1, 2... 6 from QE straight to growth. Apparently QE needs no defined transmission mechanism any more. It just happens. Poof! Like magic.
Methodology is such a drag.
Collect underpants >>>> Profit!
So CB Buys Bonds. Wash Transaction. But economy gets Liquidity at the Government or Corporate Level
- No guarantee that money won't be hoarded or looted in the form of bonus money, stock buy backs, compensation, etc
- These Bozos have no control on how the Liquidity will be spent, there is no model, it is like Global Warming
"So, yeah, no inflation so far...unless you like to eat."
------------------------------------------------
Not only food, but higher education, health care, etc.
Ask Mario if he will ever die.
If he says yes, then say "But you're not dead yet. And there's no hyperinflation yet."
Listen, and understand. That central banker is out there. It can't be bargained with. It can't be reasoned with. It doesn't feel pity, or remorse, or fear. And it absolutely will not stop, ever, until you are dead (broke.)
We're gonna need a bigger guillotine.
Stephen: [speaking heavenward] Him? That can't be Mario Draghi. I'm prettier than this man. All right Father, I'll ask him. If I risk my neck for you, will I get a chance to kill banker men?
Hamish: Is your father a ghost, or do you converse with the Almighty?
Stephen: In order to find his equal, the goyim are forced to talk to God. Yes, Father. The Almighty says don't change the subject; just answer the fooking question. -- Braveheart, 1995.
Art, high-end cars, high-end RE (the real high end), coins, and other collectibles breaking record after record in price, these last two years.
Hyperinflation hits the peasantry LAST...
"And somehow this runaway inflation hasn't come yet."
The key word is "yet".
There's plenty of inflation - its just in the stock market where the bankster scum invest Their money.
If any of that ill gotten loot actually trickled down then yes there would be Inflation for the masses - but these banksters are working on stealing the rest of our money and assets not Trickle that jack down.
You take a risk. If it works, you become complacent there and look for the next risk until you find the line. However, because its government, there is no line. They are playing with the pennies in its citizens pockets. How can you be afraid to lose something you don't own?
We won't see Hyperinflation this decade. What we will see is less and less purchasing power.
There won’t be Hyperdeflation, either. You will see QE for the ‘very’ lucky ones; and cheap and cheaper Bread and Circuses for the masses.
Of course, there will be a break point: When there won’t be enough energy for everyone. The QE people will afford it.
So, when QE will end is the wrong question to ask. The right question to ask is: When will the masses run out of their Bread and Circuses?
Then, only then, we will really have a problem.
Ignoring reality while having your minds filled with falsehood and errors will be proved dangerous.
So.... they are gonna keep printing moar, people's currency will have less value in regards to purchasing power (is there any other?) and we aren't gonna see (hyper)inflation this decade.
You can call it a chocolate brownie if you want but when granny can't afford her loaf of bread it really doesn't matter does it?
Shhh... not supposed to speak of things past. It's the "new normal" now.
Maybe the Influx of Black Market Consumers from across one of the "old borders"... in the 10s of Millions are straining the Food Distribution system along with specific scarcity.
Indeed. They know without continued printing (and bond buying), the bottom would fall out quickly.
Hyperinflation is a loss of confidence in a currency, and you are well on the way to doing exactly that to the Euro Mr Draghi.
Now stop lying. Stop being such an arrogant, condescending asshole. Admit you're broke and insolvent, so life can continue for 99% of the planet, you selfish prick.
f'n parasite
"."
Well done n1004
What Mario was thinking when he answered the question:
Hyperinflation?...Perhaps....but not before all the stealth hyper theft is completed!....Muhahahahahaahaaahahhhhaaow!!...ahem
"All CB's own the markets. All CB's manipulate Forex, PM's, derivatives, and Treasuries.
Now stop lying. Stop being such an arrogant, condescending asshole. Admit you're broke and insolvent, so life can continue for 99% of the planet, you selfish prick. "
This simply required repeating. +1
Inflation hasn't come. Well I guess his butler hasn't been telling him about the price increases at the supermarket and in other stores. The DumbF__K
When Super Mario gets the Euro down to about fitty cents there will be plenty of inflation.
Then what?
This has nothing to do with Black Holes; which are predicted by General Relativity; it's not physics, it's economics; which is a non-science.
Literature is a non-science, and I like literature. Economics is a pseudo-science, and I don't like it, at least not the brand that is practiced by CBs.
You're a smart Penguin. I agree. Although I'm not sure it rises to the level of a pseudo-science; it's more like a cult with some equations thrown in to baffle the younger students.
Differential equations are integrated core, which defines the basic parameters of the process and its direction.
For stable processes needed oscillating nucleus.
Bank brings by their actions exponents in these equationsand and the system goes to the hell
Economics = voodoo
Stop drinking while posting please. Diffy Q's is reserved for the place where Mr. Keen is trying to hang himself.
Economics is maths, it has strict laws, but this dumbfuckers crossed all laws. System is dying and they can't do a shit to save it.
You are an idiot. Economics is human behavior.
LOL? you have 4$ for 4 goods or you have 40$ for 4 goods? one time 1 commodity cost 1$ and another time 1 commodity cost 10$
PURE MATH. You have real sector and virtual sector of economics. You can't eat paper.
Did You go to school and university ?Do you have any education?
You're intepretting human action as a purely mathematical system. That means you're doing it wrong. Economics is the study of how markets act, and markets are people.
What Nid said... idiot.
It's purely mathematical system - you are getting poor and they are getting richer, system is working.
You get less money and more taxes, they get more money and les taxes. State is a system too by the way.
You have your place in the system and it doesn't matter what you are doing until you have a top control position.
It's very simple...
no. it is not simple. and, thinking math has a place here is what confuses the issue. thinking that there is some way to model this using modern mathematical tools is just stupid. it is a smokescreen. even simulation will fall short. this is about confidence and nothing more. about "buy in" or "fear of death."
human nature is to game the system. just like saying idiots will evolve faster than idiot-proofing. those who chose to fuck everyone else will always be ahead of the curve.
you need to restudy your school program
"those who chose to fuck everyone else will always be ahead of the curve. "
Until they are in the noose. THAT part of the curve is a bloody tight fit.
The criminals keep forgetting that there is historically eventually a point where they end up with a rope around their necks for fucking people over.
Keep playng that tight curve and see how long you keep breathing.
As for "idiots will evolve faster than idiot-proofing"?
Evolution and randomness/chance will take care of stupid eventually.
Faster if we stop idiots from gaming the system by stealing from smart people so as to try and idiot proof every God damned activity and compensate for the mathematically per-determined outcomes to stupidity. I'm not responsible for your bad decisions, asshole.
Math is the wool pulled over your eyes my friend. Stop and ponder for a moment over the economic mandate of "growth" (consider open system analysis - which is reality).
Selling economics as a pure science is one of the greatest lies of the past millenia. Krugman is no better than Von Mises and Keen who knows better, IMO and is heading toward the same fate.
The math isn't static in economics, that is the problem. Most humans can't understand non-localized mathematics, and as a result they end up having to cover their own ass when things get out of hand.
this isn't economics. it's theft, counterfeiting, and treason hiding behind the logic of a patently false economic theory.
Keynes was a Rothschild flim flam man. A glorified carnival barker. He knew he was full of shit but also how to sell it.
Now that's what we have today. A big bag of carnival shit.
Under the Big Top watching the midget trannie cornhole the Bearded Lady.
Was that Mario and Janet, you were watching?
lmao!
economists serve the status quo or wind up flipping burgers. sorry assholes - but there aren't any "consequences" on these folks like there are for doctors, engineers, etc.
And not one shit hawk in sight. http://youtu.be/dkWHaiNXbjQ
"this isn't economics. it's theft, counterfeiting, and treason hiding behind the logic of a patently false economic theory."
You forgot bribery, ransom, coercion, totalitarism and murder. In other words, it's the sociopath way.
ROLFLMAO !!!!!
Holy shit how utterly humiliating for potus. One of the top google searches during the STOU was "WHEN DOES OBAMAS TERM END" In other words the general public would like to know how much longer we have to deal with this idiot!!!!! I can't believe they let that slip in. Fucking morons!
35:57 mark..... check it out!
https://www.youtube.com/watch?v=GbR6iQ62v9k&feature=inp-lt-yti-01
Idiocracy begins with the green lipstick lady........
50:36 mark
quote---"yet"----. I think I'll hold on to my Silver Bullion just a little while longer, Mr. Draghi.
you didn't feel raped until a cock was in your ass Mario?
I think Mario "vastly underestimates" the potential for everything to completely go to shit at any moment.
He's kind of in the position of a guy trying to start a Radial Aircraft Engine by turning the Propeller with both arms; not knowing the Mags are hot; if it starts, he won't even have time to kiss his ass goodbye.
Still always funny watching a Keynesien trying to explain the mess they're always in.
QE is nothing more than Food Stamps for the richest 1% and well connected. It has helped create the widest wealth gap between the rich and poor since they've been creating records where 100 of the richest people in the world own more wealth than the bottom 3 Billion People. This sounds like a statistic you'd expect when reading about 12th Century or perhaps 500 A.D.
I'm sure this is gonna end well?!
Hyperinflation is not just inflation on steroids. Inflation is too much money chasing too few goods.
Hyperinflation occurs when people lose faith in the currency and exchange it for tangible goods as fast as possible.
The central banks have always, until the present, had a certain amount of control over inflation.
Nobody can control hyperinflation. It is panic pure and simple.
I still don't get why the Euro sank today if the markets were expecting QE. Why wasn't it built in already?
LA Times: Did Pope flash ‘devil’s sign’?http://tinyurl.com/mpzzxkv
Market's don't anticipate anything; and if they do; they're usually wrong. Today's market price is the opinion of today's participants. This is common retail mis-information; that markets "anticipate things'. They don't. They just don't.
Meanwhilie since we're discussing markets, and I never know where to throw these things in here; I got my zero loss stop hit today on my S&P500 Shorts; which cost me zero; (hence the clever name for it); and I have already gone short X3, $150/point) for June @2050.
Because they immediately start the new meme as soon as the old one comes to pass. The new meme is "they will increase it".
is it ok that I just like the word "meme?"
sort of like "paradigm." dunno. just seems we are along for the ride. one of my favorites these days is "singularity." think "blast radius" is something I can play with too. hmm...
He said he didn't want to make jokes. Then he back-tracked and insinuated that the reporter was making a front loaded joke about a serious valid question.
Draghi was caught off guard, and it was obvious.
They won't even see it coming. Because, for most, its already here.
Draghi activates his trap
Jesus Christ is that the best he can come up with?! Should have gone for the Chewbacca defense.
Fuck this guy and all the other motherfuckers who make up tptb. even if he knew 100% this would cause runaway inflation, he wouldnt say it...these guys lie until the bottom falls out then come up with every excuse in the book of how it wasnt their fault and they couldnt see it coming...they did all they could!!. this shit show goes in toilet unless something changes dramatically, which is highly unlikely.
my guess is $30 oil and EUR-USD parity triggers that 'dramatic' change... or DXY crashing through 100, sparking a huge recession and panic in the US.
in any case, i'm betting 'capitulation' will be a popular word on ZH in 2015.
draghi try calculate cpi without harmonise it and maybe you will find inflation
Wow, he's a real pro! I fully expected him to "reject the premise of the question as an absudity."
An then laugh and say "joke on you now!"
Seriously....the question SHOULD have been "are you concerned about the move downward in the euro? And
" do you expect it to continue."
If he'd answered those two questions now THAT would have been news.
Wholly shit what an idiot.
Hyperinflations often follow an episode of STRONG DEFLATION.
I wanna say "usually" or "typically" but I haven't studied enough of the 600+ hyperinflations we've experienced to be confident about that one. But that they often do, is easy to establish by looking at any given handful of hyperinflation charts.
I don't pretend to be a central bankster or even financially knowledgeable, yet even I know this, while both Thuper Mario and the questioner seem ignorant of this fact. Fucking morons in charge of governments and bank, being interviewed by thundering idiots. Christ will someone tell me why ANYONE watches the MSM, especially the laughable garbage they pass off as "financial news".
Draghi's a Gollum Sacks criminal, however, so he probably does know this and is just lying. The questioner is obviously and genuinely clueless, so easy for a racketeer like Draghi to fool. (As shown by the questioner calling EU official QE the 'first step'.) If that's a finance journo, then s/he's in dire need of a pink slip. (Didn't bother clicking the link to see who it was. I don't like giving clicks to racketeers or moronic interviewers. This only encourages them.)
Both 'reporter' and money changer criminal pirate engaged in staged diversionary propaganda.
Deutsche Banana Republik Weimar time in Urupp once again.
In Heaven: the cooks are French,
the policemen are English,
the mechanics are German,
the lovers are Italian
and the bankers are Swiss.
In Hell: the cooks are English,
the policemen are German,
the mechanics are French,
the lovers are Swiss
and the bankers are Italian.
Welcome to hell!
Mussolini: "And yet somehow these partisans haven't come yet . . ." Sleep well, Mario.
Draghi is a Patriots staffer!
and soon to be "off like a Prom dress."
"So the jury is still out, but there must be a statute of limitations. Also for the people who say that there would be inflation, yes When please. Tell me, within what?"
wrong question as always ... should have been: "when will deflation break out?"
answer: you're looking at it
ZIRP/QE disinflationary ... deflationary when asset bubbles burst (at onset)
Looks like gold to zero then. Keep in mind while hootin and hollerin for oil to zero that the gold oil ratio has very rarely managed to remain at 28 or above without a big move in one or both. So either oil comes up or gold has a long way to catch down with oil and I am sure that no one in the world has the first clue where all the gold is or who owns it if they could actually look at it in person.
Gold to zero? Damn ima get me one badass Mr T chain collection + sweet shirt made of gold thread.
U Don't believe Markets are fixed, gold is fixed?
What more QE unleashes is more offloading of bad central bankster garbage onto the public, that's all. 'Hyperinfaltion' is just bullshit, banksters unleash that onto the public when they feel like it too.
SD1, I marked you up for your first sentence. But I must take issue with your second one, as I think hyperinflation is a reasonable expectation for the USD satellite currencies, and possibly for the USD itself (although not the only possibility).
To dismiss hyperinflation - a loss of faith in the currency - assumes the public has ANY hope of paying off that bankster debt, to make said bankster whole again. In my view that is not going to happen, even if they did manage to make the full global 99% into willing brainwashed zombie slaves. (One generation past prosperity should be enough for even the dumbest peasant to figure out the lie behind the voluntary slave trap.)
Therefore, this (credit market) deflation is occurring, which shows in such over-leveraged commodities as oil. When confidence is lost in the ability of the currency to represent a debt that will be paid back - in other words, when faith is lost in the credit represented by the bill - then confidence is lost in the bill itself and the only way that bill is accepted is in very large quantities, and only as long as those quantities can be quickly disposed of. Hence, hyperinflation reasonably follows, which leads to a new and different note.
In this case, because the USD is (nominally still) the GRC, instead I think it will simply continue to drain out the credit markets until the derivative mountain collapses and it disappears from trading use altogether. But until then, it is reasonable to expect its satellite currencies to hyperinflate against it. Hard to say, but check out the price of gold in a satellite currency, as against the USD. The divergences look (to me) like faith being lost in the satellite currencies and going instead to gold and USD. Since the derivatives market uses USD, it is called the "cleanest dirty shirt", but even today it makes for a poor saving vehicle, which is perhaps the most important function of money.
We've never before been stupid enough to crown any currency "global reserve", so because of this uncharted stupidity, the consequences are also uncharted. The one thing we DO know is this debt pile is NEVER gonna get paid by the public, or anyone else. The longer anyone stays invested in it, the more likely they are to be among a ruined majority of investors. Gradually more and more investors in the derivatives bubble will realise their investment is worthless. They'll use USD to get out of such bad investments, for as long as it continues to work. Then they will probably not use it again - why would they, after the note is exposed as representing only bad debt, and the price of such note is so high to make it useless for productive trade?
The essence of hyperinflation is not rising prices, but loss of confidence in "full faith and credit". When faith goes, credit quickly follows.
I will consider the lesson learned to be well worth the pain, if it results in 1) the abolition of every central bank around the world, with constitutional amendments never to allow such a treasonous abomination again (including the strictest legal penalties); and 2) everlasting retirement of the howling idiocy known as "Global Reserve Currency". After seeing the death and destruction brought about by this GRC, there had better never be a successful attempt at a second one, "gold-backed" or otherwise.
Yeah.
Just waiting for Japan.
Germans are pissed. I haven't seen this level of anger and frustration about the EU since the start of the Euro.
Whatever happens doesn't matter anymore. Draghi & Co. have killed any love for the Euro in Germany.
People will start hoading CHF, PMs and to a degree USD. There will be a black market with prices in Eurolira and prices in "hard" currency.
Draghi is an Italian asswipe and should be lynched at the next opportunity. He is responsible for the downfall of the EU and the Euro. His gang of thieves at Goldman prepared the way by cooking the books for Greece and probably elsewhere.
Eurolira is here. Germans know full well what comes next. Russians have been through this before as well.
They may be pissed they have no choice. Europe is 50% + of their market.
And, their banks are all in on Banking exposure + domino effect.
Europe has a problem that it did not discipline the core in 1999 (the original 6) to fiscal and productivity alignment BEFORE taking on the extension to peripherals. Cart before horse once Euro had already emerged.
That's called a birth mark that stays like a red patch of disgrace.
Time to say "let the chips fall where they may".
China is becoming increasingly important as a trading partner.
The Euro can be broken up. Germany wouldn't go it alone. The Northern states would go along. The South can do what it does best. Print money, dilute purchasing power and be a good host to the rich people from the North. It's been like this for as long as I can remember.
Should be Euromark to preserve the purchasing power and Eurolira to keep the Club Med dreaming about their retirements.
T he Euro will be broken up; hedge accordingly.
For yourselef mr. Walkure; consider keeping your savings, ( a non-negative expression for hoarding), in Silver; bullioin coin or bullion. The results will be very satisfactory. When you have increased purchasing power while your fellows have greatly diminished purchasing power some real long term bargains can be made; like a small farm; or a business.
ya bummer, if they didn't already give up their sovereignty they could do something about it but..........
Big bad Russia with the 15% income tax is a terrorist threat to the KleptoEU.
De Nile isn't just a river in Egypt, the EU is a sovereignty denial zone and future Caliphate financed on former German citizens* backs and savings** (*now EU "residents", **now gone, obliterated with EU debt)
Welcome to the "Socialist Super Non-State" where you have no rights, not even exit rights.
(ask Ukraine about leaving the EU LOL)
Doesn't matter for him. HE just needs to hold shit together long enough for his successor to be appointed.
Translation: we greatly prefer hyperinflation to deflation. One results in TPTB with sizable debt-financed assets surviving the collapse and end up richer, the other kills the banks and takes out anyone relying on debt to become rich.
Draghi: Don't ask me about the mass murder the US & EU inflict on nations with weaker militaries opposed to accepting our fiat, ask me about discount oil from Russia and Iraq.
Translation: "STFU plebe, there are folks at the 'Squid' who I have to take care of, and need higher stock prices so muppets like you can buy the top. Christ, you Sheeple just don't get it do you? We know what's best for you, and eventually inflating away your life savings is in our best interest at the moment. Next Question."
www.traderzoo.mobi
Gold has long been a barometer for inflation. If gold remains low, the PTB can point to it and say, “Look, gold is low so there can’t be inflation.”
Printing (creating) money will eventually result in inflation for goods the money is used to buy. 40 years ago those goods were real (remember Carter), so prices of goods went up dramatically.
Today printed money is being used to prop up the stock and bond markets. The PTB can point to the markets and say, “Hey, look. The markets are strong so the economy must be good.” Actually, inflation from newly created money is showing up in stock and bond prices, not in the prices of goods.
That’s what happens when printed money goes to Wall Street and not to Main Street.
And as long as the plebs are completely unaware that places like Goldman can maintain short positions that greatly exceed even theoretical yields from the ground on certain commodities because the CFTC is good at playing '3 blind mice' we can maintain the illusion that (hyper)inflation isn't an issue from QE-asy money.
Put your money where your mouth is and buy and hold real gold in your hand and see the price you paid.
THAT IS THE TRUTH AND THEN YOU KNOW IT.
Agree the decoupled system has occured where the stock price no longer represents the value of trade in ther company.
Surprisingly; Gold is not a good indicator of inflation. I don't have time to go throiugh it all here, but even though it's counter-intuitive, it simply isn't. However; it is the right time to buy Gold, or better yet, Silver. Because what these markets actually trade on is fear and uncertainy. In the case of 'dramatic" inflatioin, the kind that's in the ngihtly news, day afterr day after day; etc. yes, then it becomes an important driving factor; this takes place surprisingly late in the process.
The markets always win, and they are always right... Period.
Disagree and why so many people are struggling to determine the real vale of anything.
CTRL-P and a non-backed FIAT monetary system distorts so much nobody knows the true value anymore. Enough paper created all values can then be controlled like1 real : 100 fictional if I own the fictional I can smack down the real to whatever price I want to pay? DO YOU SEE THAT?
THE SYSTEM IS BEING GOOSED BY THE ELITES 4 THE ELITES
Hyperinflation comes about when there is a loss of confidence in the currency. It looks like the Swiss have lost confidence in the euro.
Well, you can hardly blame them. They gave it the old school try; but they're not going to commit suicide just for some French Socialist day-dream.
QE achieves fuck all if it is a trade between central bank and a banker.
CBA to explain more you see for the ECB to hand the money to the population is not allowed because ... dah ... dah .. dah ... IT IS FOR BANKSTERS who would feel poorer if they did not get it.
Let me say Right Here, there is an "Old World Order"
- Any reference to a new world order cites the Old European Order, Royals, Elites, Lords, Earls, Owners of Capital Production, the Manager & Executive Class
6 Classes of Citizens
- Royals, Diplomats, Statesmen, Super Wealthy
- Elites, Other Wealthy
- Debt Free Middle Class
- Middle Poor Class with Debt
- Immigrants who Vote
- Prisoners and Non-Voting Immigrants/Roma
Same as it ever was.
Two Thirds of the House of Lords in England's Parliament are Hereditary. Does this matter ? Yes.
Hmm, no inflation?
Housing - Started to crash towards normalcy in 2008. QE "saved" home values and sent them skyrocketing higher blowing any chance at affordability.
Food - Absolute insanity. A normal fast food value meal was about $4 in 2008, the same exact meal is over $7 now. Anything that is the same price is smaller in portion.
Clothing - three pairs of crap tube socks are $9. T-shirts have half the thread count and are twice the price. I never thought denim could get worse than a few years ago, but sewing newspaper together would give you better quality.
Batteries - four Duracell AA alkaline go for $6.99 at Walmart, WTF!!!
Cars - The sticker price for the car I bought in 2008 was $18,500. The exact same model now sells for $23,500.
You could go on and on and on. It would be acceptable is wages kept up, but they haven't and in fact have gone backwards. What you could buy on $45k in 2008 now takes closer to $70k.
Draghi and ECB translated: "Admittedly nothing we have done in the last 4 years has worked so we are doubling down on it."
This is not difficult.
The point isn't that the central bank prints money.
The point is what is done with the banknotes afterwards.
If (any) central bank prints a vast number of banknotes, but leaves them in a (hopefully secure) warehouse, nothing much will happen.
If the money is 'helicoptered' evenly over all legal entities (individuals, corporates, etc.) it is very inflationary.
Historically, the nearest to this is when the banknotes have gone to a combination of the government (which can never stop spending and doesn't want to meet the cost via taxes - see Weimar) or just a combination of (Ruler + friends and family of Ruler).
In the case of QE, what is happening is that the money is being spent on bonds.
It will tend to inflate the price of those bonds (so interest rates become too low, which is a bad thing for the allocation of capital), but malinvestment is not the same as general inflation.
The problem the whole world has (not just Draghi in the ECB) is that there is simply too much debt.
That means that even if interest rates are very low, no-one feels particularly motivated to add still more debt.
And the bottom line is that because economic activity at current levels requires more debt being taken on, economic activity cannot remain at current levels.
We are not in for an inflationary meltdown until the average Joe gets the money being printed.
But no-one knows how far economic activity will turn down as a result of less debt being taken on.
If we unwind to, say, the levels of debt/GDP in the 1950's, then we could have a severe depression.
And cash (outside the banking system, and held very quietly) will be king.
Watson
And this "Severe Depression" will cause such serioius and far reaching "social unrest", ie. Civil Wars; that Silver and Gold will soar, as they trade on fear and un-certainty. They are the horse in the horse race that has four sound legs and good lungs; the others all have bandages hanging off their Fetlocks and limp into the gate, wheezing. Deflationary cracsh; metals win; inflationary panic; metals win.
very descriptive
this is the kind of image someone should paint and hang in a large public gallery so the masses get it
Why is all good when Greece need another 250bn and nothing fixed, but all things are worse?
MOAR buyback, fucking shitheads...
Just because QE hasn't caused runaway inflation in the U.S. or Japan, that doesn't mean that it won't cause runaway inflation in Europe. There is no quantifiable economic reason for this except that -- as any cursory glance at the history of the-only-continent-that-isn't-really-a-continent reveals -- God hates Europe. Now granted, it remains unknown why God hates Europe in particular. It has been speculated that there is something about those smug Caucasian faces that makes Him want to slap the shit out of them. But for investors the reason why is moot, it is enough to know and make decisions in light of the fact.
First comment on this thread that made me laugh. YOU get a gold star! And a smug caucky-face green arrow.
Sing it with me: I hate Europe - you hate Europe - we all hate Europe so it's out in the garden eating worms, yum yum. Hating Europe is just good for the soul!
(Wait, unless dats rayciss...?)
It's all good. Check out what the elites are tapping on private islands!!
https://www.youtube.com/watch?v=fp3tLLVLPao
Anyone who happens to read German might want to take a look at the rather thoughtufl editorial that appeared on the the FAZ website shortly after the ECB decison was disclosed...
http://www.faz.net/aktuell/wirtschaft/eurokrise/kommentar-wie-die-ezb-ve...
Headline translation: How the ECB destroys trust.
Enough said...
Creating enough cash to cover derivatives totaling quadrillions which will simultaneously collapse our currencies - and result in the IMF (international Mofos) rushing in with SDRs so the few left who have not starved to death can call them our saviors is what it looks like from here.
Even a word to the wise; is sufficient; a lecture to the ignorant is wasted. Some famous guy said something similar.
Draghi reminds me of The Iraqi Information Minister....
The one that said it was silly to suggest The Americans had reached Baghdad.
Baghdad Bob! I miss that guy. I hope he found work at a deserving central bank somewhere, or the MSM could give him a spot as a highly respected journo with Middle East experience.
i agree, but the difference is that we took baghdad bob out. he really was working for saddam.
what-a-draghi works for goldman sachs, they will only take him out if he doesn't do as they say.
Jesse’s take…
Davos Man and High End Looting | Jesse's Cafe Americain | January 22, 2015
It was all about the ECB today. And do not think for a minute that this asset purchase program is designed to benefit the broader economy. It is a subsidy program for those who own financial paper and the Banks.
Gold and silver were pushing higher against key resistance and a short term overbought condition on the word from Monsieur Draghi that the ECB will be handing over about a Trillion per year to misprice the risk in financial assets.
This asset purchasing will not have much impact on the real economy, but it will inflate the price of paper assets, especially the kind of debt held with leverage by the wealthiest one percent, delivering profits in tax subsidized forms of income.
Gold is consolidating nicely, and as we showed intraday with the NAV premiums, the gold-silver ratio has dropped back down to 70, which although quite high is not as stratospheric as it has been. Even the premiums of the trusts and funds in precious metals have normalized a bit.
The strong dollar is good for importers and the Banks. And that is why most of the developed world, particularly Japan and Europe, are trying to devalue their currencies. But it is hard to imagine how all of fiat price rigging is going to provide a benefit to the real economy. It starts to look more like high class looting from a distance.
This is going to further taint genuine economic activity with financialisation, and make the task of prompting a recovery that is self-sustaining that much more difficult.
The US financial sector will be benefitting enormously from this European QE, such are things these days with the global multinationals.
And as for the rest of the people, the vast majority? Time to lower your expectations, for you and your children. At least you will be given the privilege of voting for one of the candidates of their pre-selected choice next year.
Have a pleasant evening.
http://jessescrossroadscafe.blogspot.com/2015/01/gold-daily-and-silver-weekly-charts_22.html?utm_source=feedburner&
Super Mario indicates that he has many more made to measure suits in the wardrobe and whether he gains or loses a few pounds his tailor can alter a few stitches HERE HERE and HERE. This Emperor will never be NAKED until HUNG.
Mario's dry wit is always delightful, but ever since SNB dropped its peg, all CB statements are For Entertainment Purposes Only.
There will be no inflation until they raise rates. Despite what is commonly thought, it is always the higher interest rates that cause the inflation they are trying to fight with the higher rates. Higher cost of capital = higher cost of goods = higher prices.
Of course the answer is that inflation will inversley reflect confidence in the currency: Slow erosion, and then suddenly none at all. So his answer was basically bullshit.
"How did you go bankrupt?"
"Two ways. Gradually, then suddenly"
Ernest Hemingway, The Sun Also Rises
"...the world is now caught in a vicious spiral in which every single central bank is printing money just to export deflation to its peers..."
Hasn't the US Fed ceased printing now? Or what? Thanks.
MAYBE HAVE TO START AGAIN , IT AIN'T QUITE AS rosey as Mr oObama likes to tell it
QE is just a form of debt cancelation, thats it. If the Govt that has canceled the debt wit the central bank increases issuance then it could be inflationary, but whats happening is they are doing QE (caceling debt) and also raising tax and reducing the speed in which govt spending is increasing .. so theirs no inflationary impact.
If it leads to more aggressive govt spending, ie central bank cacels debt, and Govt does large new issuance ect. then the new money will find its way into the economy. What their doing now is just cuasing low rates, increased corporate and other issuance, which is lafing to excessive production / supply in the places the issuance occurs, which is leasing to lower prices (see oil and other products that got a supply boost from low rates.
If they want inflation cut tax.. and increase pension payments ect (get the moeny into the people) and then use QE to pay for the budget gap ect..
But down the road right? And would only cancel corporate debt, they want to keep power & Control over the governments & People, while selling the commons.
tok1 - that is TOTAL bullshit. total.
QE is wealth transfer. NOTHING is cancelled or intended to be, because the PEOPLE are on the hook for the
debt, not the banks.
two things.
#1 - if the issuing countries no longer issued debt - you would be correct. but you are wrong, they continue to do so, and in ever larger numbers because the interest payments are nill
#2 - this time it IS different. if there is a next it will not be - and that is the power of computing being felt for the first time, because the created money never actually gets 'printed' or into people's hands, but into banks hands. and that then goes into STOCKS. and STOCKS ARE IN HYPERINFLATION. look at any graph.
as i say over and over - it was a brilliant way for sociopaths to steal peoples money without using armed forces. until some of these people are removed from the ability to control us, it will continue.
in all - i don't like suffering financially - which, well, i'm really not. but, they are stealing my money, bleeding it slowly. but - this is still better than being shot and just having everything take from me.
it is that simple, if you can think simply and understand it.
I agree with what your saying, I just mean in terms of consumer prices / demand its not having any impact (and right its all flowing to asset prices which benifit the owners of the assets a small group).
What I was saying is if they want inflation the funds need to flow to the consumers.. then more dollars will be chasing the same assets and prices will rise.
I think your are right though it seems intential that they are pushing up asset prices exclusively instead of using the increase in money supply to reduce tax.. increase pension payments.. In this case the Syseria guy is kind of right.. ie why buy 60 trill a month in bonds that then gets switched into eithers stocks or foreign bond/stocks. Why not just say give every EU family a 5K Euro yearly allowance .
Also if the debt really is an issue which it is prob better to just do a large one off money supply expansion, ie ECB can say we will by 25% of all bonds outstanding (swap the bonds for Euro) so the debt is reduced by increased money supply, and then set a normal interest rate policy, rather than taking years to monthly buy the bonds pretendings it for inflation or jobs ect where as I said its just to reduce the debt, because as you said maintaining the debt maintains the aseet prices as well...
the amount of quantitative easing required is equal to
the amount of fraud that must not be prosecuted to
sustain the system of slavery by "MOaney debt" devised
by the barons of finance, encoded into law in 1913, then
modified in 1933 and 1971.
you say you want a revolution? they got theirs.
.
The Beatles - Revolution (1968)
https://www.youtube.com/watch?v=gR9JMwzxybE
Head of Greece’s opposition party, Alexis Tsipras, gave a Samuel Adams rousing kind of speech today where he declared his party’s quest to stop the devastating bailout policies of the current administration, vowing to take the Greek government away from the bankers and return representation to the people. According to the BBC, he spoke amidst heavy cheering.
The 40-year-old civil engineer said that his administration would restore freedom and democracy in Greece, a country that has 25% unemployment, a country where the EU, backed by Germany, is saying no money unless you follow austerity; a banker-orchestrated austerity that is killing the people.
Tsipras’ Syriza party, according to the AP, is poised to win Greece's general election on Sunday. -
Meanwhile, the European Union proceeds to destroy its citizens in favor of the banks with the celebrations of Draghi going wild in financial circles, financiers cheering the Goldman Sachs banker for their Santa Claus gifts.
I hope he wins, pulls Greece away from the Euro and does well by his people.
Someone needs to show the banksters the way to the door.
If you can note/detect the disgust/ contempt for, on Mario's face should even the HAND PICKED journo dare challenge his TRASHTALK you realise that that very look is matched across the board with these BASTARDS , namely, Obama, Hitlery, sLagarde, and on . . . .
Technological innovation and production is deflation.
Banks printing / crating in any fom is inflation.
We are viewing the level of deflation of the current level of humanity but just to keep it all in oder we do the printing to create the inflation.
That is all they have been doing but now inflation is <<<< deflation and they shit it. Deflation was the natural process but it blows all debts apart especially sovereign and there godhood so we are forced fed bank printing to keep what is BEST FOR THEM.
Kind of pointless even commenting on it because through a persistant 100% denial only there deaths will change it.
I don't know how many times, 4 or 5 times, 6 times maybe.
This guy isn't even smart enough to remember how many times the ECB has lowered interest rates?
But I guess he's a good talker. Fucking dumbass tools running the zoo.
Well I was expecting some bull from Keynesien Draghi, but seriously, ZERO logic at all ? Just 'cause it hasn't happened, means it's never going to happen? Really?
Sheikh_Speare
I like the part where this decision was so popular they didn't even have to vote on it.
We should apply that method when voting for the next President.
The one that gets his/her puss plastered across the TV screen the most, thus being the most popular on TV, plus popularity in the 'polls' and on Twitter wins.
Oh, wait...
No hyperinflation until everyone decides the ponzi is up and goes to buy beer all at once.
Original quote: A Billion here, a Billion there and pretty soon you’re talking about real money. - Everett Dirksen
Updated Quote: A Trillion here, a Trillion there and pretty soon you’re talking about happy banksters - Mario Draghi
B.U.L.L.S.H.I.T.
Just because I woke up and got out of bed this morning doesn't guarantee that I will tomorrow. In fact, the day will most certainly come when I will not.
"For I have spoken to the dark one he has told me of the future!"
also: "4 or 5 times, 6 times maybe." ...there's a real winner