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Has The ECB QE Already Failed? 5 Year Inflation Expectations Decline Since Draghi's Announcement
Just as we pointed out explicitly yesterday, ECBQE will 'not' provide the inflation-expectation-lifting hope that every talking head proclaims as its raison d'etre... just as FedQE did not. We noted previously that Draghi's actions would likely send the most deflationary signal ever to the world's policymakers, and sure enough European 5Y5Y inflation expectations have dropped 10bps from yesterday's highs and round-tripped to the levels seen before Draghi unleashed the money printing machine.
Draghi - we have a problem...
What we expect...
* * *
Of course - in reality - QE was never about any of that - it's all about stawks stawks stawks and wealth creation for 1%...
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Failed? Not for the oligarchy
The second step is the complete control and direction of the money flow inside the eurozone, which is directed not to the real economy, but to the biggest financial institutions who represent one of the most powerful lobbies in the EU:
New story (ie NEWS) content of posted link?
LOL, I just remembered I've got a dead (no longer funded) "post employment healthcare account" sitting in a Euro-stock fund.
I might be able to afford Obamacare after all!
Sign up today for your pre-failed credit card and we'll automatically file your bankruptcy papers for you.....
"Of course - in reality - QE was never about any of that - it's all about stawks stawks stawks and wealth creation for 1%..."
I know it, you know it, the whole world knows it.
When the game is up it will be a doozy. But until that time comes BTFD
Edit:
Some peeps are just convinced that the world is going to implode. I think what is greatly overlooked is the fact so few own so much wealth that they will never let it happen. Thieves gotta be thieve'n. There will always be wealth extraction/generation in some asset.
True, hard to protect all your assets when they are spread far and wide across the planet.
How do you pay security forces when currencies collapse?
And those hackers!
Thieves gotta be thieve'n. There will always be wealth extraction/generation in some asset. ...
And while they are "thieve'n" that 1% is killing and looting "physical assets" that are the only ones that matter from a whole lot of people in some very strategically located places that defend themselves in ways the "1%" ain't thinkin about enough!
If this was just about markets and not moar wars to acquire that additional wealth I would agree with you, but we both know the dynamics of this one this time around are different than any other we've seen in the last 70 years!
"Of course - in reality - QE was never about any of that - it's all about stawks stawks stawks and wealth creation for 1%..."
Precicely.
DOA. Whistling in the wind.
Well, that was worth a trillion euro’s...
HEY DRAGHI!! LET’S GO ON THE SLIDE AGAIN!! ROUND 2!!!
What will happen when they got to the 0?
Recalibrate the chart and use coke as a parameter of value?
Wait, isn't the line supposed to go up? Oops
Seems to be doing a great job nuking the euro.
What's the problem?
Europe needs a weak currency to be able to sell anything. QE does that for them.
maybe I missed it, but I dont think the bond buying is necessarily on the primary market. I belive this is a case of the ECB buying bonds on the secondary market, from banks that will book enormous profits on same (wealth transfer to the 1%, with a nominal notion that it will improve the banks liquidity). Secondary benefit by devaluing is to try and goose exports, cheap oil gives them cover to do this....
Am I missing something?
It is the definition of insanity.
ROFL
Trillions in QE from the Fed and BofJ have not produced 'government measurable' inflation in either the US or Japan -- so why would Euro QE cause inflation?
Maybe the better solution would be to make the 'government measure' of inflation show 'real' prices???
maybe euro has that finesse they are supposedly known for lol
What the fuck does reality have to do with "expectations?"
And why are you using the word solution in the same sentence as government?
+100
all you had to do is read his user name : "No way Jose" is Sort of primitive , derived from some TV /movies lines
ECB-QE faild for sheeple is a expected, nothing new here
they only ever wanted financial asset price inflation. that's the "good" kind of inflation according to them and they got it.
Exactly, wage inflation will never be permitted. Support the assets, depress the wage earners.
"..Of course - in reality - QE was never about any of that - it's all about stawks stawks stawks and wealth creation for 1%..."
So long as those stawks aren't in the PM sector
Sell your gold, max out your credit cards and buy yourself some BOX and just ride the wave!
If there are actually any QE supporters on this board could they please tell me how even if QE 'works', how would this ACTUALLY benefit,say, the Spanish economy in any way that actually funnels down to the real economy?
I think you're asking on the wrong website.
www.UnicornFarts.com is where your answer lies.
If you don't eat yer losses, you can't have any inflation.
How can you
have any inflation if you don't eat yer losses?
Thanks, I needed that!
http://www.youtube.com/watch?v=YR5ApYxkU-U
Notice the teacher's resemblance to Keynes!
http://ts1.mm.bing.net/th?&id=HN.608050971636206849&w=300&h=300&c=0&pid=...
Theres something off with reaction to ECB QE. When US/Japan/ China did fiscal stimulus or QE oil/copper both rallied on expected increase in demand in the real economy. Since the ECB QE they have continued their fall. Also rates went up initially both for US/Japan when they began QE on expectations inflation would rise (only to come down later) .. but here they have just fallen, ie only front running ECB, no expectation of improved growth / demand / inflation...
Maybe QE with NIRP doesnt work
Of course inflation expecations have dropped. QE IS DEFLATIONARY TO THE REAL ECONOMY AND INFLATIONARY TO ASSET PRICES. Over inflated stock and bond prices causes an artificially low cost of funds which makes investing in excess capacity seem worthwhile. Too much capacity versus actual demand = collapsing prices.
QE is actually aggravating deflation. Banks have less impetus to lend when they can mark to fantasy, borrow at zero, and trade in a rigged casino.
So moar QE = moar deflation = moar QE and so on. Until they buy everything, and then...
Need moar bunga-bunga obviously.....bend over, serfs!