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France 'Proves' Q€ Is Entirely Useless
According to the doctrine of central planners, the idea of Q€ is to lower rates to encourage borrowing (and credit creation) to spark growth and kickstart a virtuous recovery. As the following chart shows, that is total and utter crap... French jobseekers just hit a fresh record high and French rates just hit a record low - and that has been the story for 6 years. So - just as The Fed was finally forced to admit, Q€ is nothing more than wealth redistribution from all taxpayers to the ultra-rich asset owners who - it is hoped- will bless the plebeians with some trickle-down-ness... with every asset under the moon already at record highs, once again we ask - just what do you think this will achieve Draghi.
And finally, we have no words for this idiot...
- *Bank Of Italy's PANETTA: ECB QE TO BOOST GROWTH 'SIGNIFICANTLY' OVER NEXT 2 YEARS
Yep - they really believe that.
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...MOAR french fries.....http://www.bloomberg.com/news/2014-12-08/mcdonald-s-monthly-sales-trail-...
Need to move money to these guys then http://www.paladincapgroup.com/about-paladin-capital-group/history/
When did Leon Panetta get the Bank of Italy job?
france will struggle until the wartime economy comes again and the manufacture of white flags resumes.
QE works, it's purpose is to enrich the super rich by destroying the middle class.
Won't generate jobs, but who cares? The plan is to monetize the debt, sink the Euro, and subsidize all the banks who have front-run the ECB buying up sovereign debt.
QE is for banksters.
In top article;
"McDonald’s, which has more than 14,200 domestic restaurants, is struggling to compete with fast-casual chains like Chipotle Mexican Grill In"
McDonald's owns Chipotle.
@bigdumbnugly
Ah, the 'ol French surrender jokes !
This kind of ugly disdain and nasty jokes come from the firm refusal of the French to join America in Irak, in 2003. Since France refused to go to Iraq, American warmongers and neo-cons made French army look like cowards – as a punishment. Surrender jokes are the left overs of the 2003 Bush hate fest against the French.
But History has proved the French were right, and that the WMD were only a dirty trick to serve as a pretext.
Nevertheless, the hate of American warmongers against France remains still there, well alive, even in ZH.
This stale hate still shows through "innocent good jokes" about the “surrender monkeys” and their white flag … As for the rest, the French can be proud of their Military History which remains despite these stupid jokes the best military record in Europe.
In fact the French - surrounded by the Germans, English, Dutch, Italians and Spaniards (among others) - succeeded to win and guard the largest country in the very heart of Europe.
According to the British historian Niall Ferguson they did it by fighting 168 major wars even against such badasses as the Roman Empire, the British Army and the Turkish forces. They've won 109, lost 49 and drawn 10 times.
http://en.wikipedia.org/wiki/French_Armed_Forces
Take pictures at a Bunga Bunga party and you too can have a rewarding career in Central Banking.
Too bad they can't get work building ships...
"Euro" proves France is entirely useless.
More accurately; "France is entriely useless" period.
I dunno whats your back up plan for Stinky Cheese, and members of the Jerry Lewis fan club?
No. it's not more accurate. And I'd be embarrassed trying to suck up-ticks off of some-one else's original thought; but then i'm not you.
even more accurately, you both prove that it's easy to raise useless pet hates versus foreigners you possibly did not even ever meet in any way
What is Draghi trying to prove? He's already proved it: the French are stupid as a rock to let him function in his position another minute.
They don't really believe that Tyler. Come on.
Also QE in some fashion provides cover for the cb to aquire junk debt
So far, not nearly enough French-bashing in these comments for my taste. I mean - the country that helped us defeat the British to gain our so-called independence and gave us the Statue of Liberty as a GIFT deserves much more vile hatred than already displayed within these comments.
Are you a woman? They like to bring up things that happened ages ago too
It is so disturbing to owe its independence to the French cheese eating surrender monkeys...
A wealthy, retired (from the federal government - therefore quite wealthy) friend tells me that "no, no... this money isn't on the back of tax payers. It's borrowed money." He really doesn't get that someone - current and future tax payer - has to pay it back.
Well, if you don´t want to sell ships to Russia,
are excused to sell railroad equipment by China,
wont sell aircraft to India,
then you must be France.
But no currency can help you, ex Grande Nation.
Reember when they threatened to ban California wine imports?
Yep...
And I remember when the US changed the name of Belgian pomme frites from French fires to Freedom fries.
Hah!
Anything the French can do, we can do better!
Okay fine, if this is true then simply raise rates and then unemployment will go down!!!
"winning"
morons.
In more details : crash the stock market, pop the housing bubble, and enjoy as investment goes to capex instead of casino.
Too bad they are too lazy to revolt.
"what do you think this will achieve Draghi.?"
TO RAISE STOCK PRICES...
WHY ARE EVER INCREASING STOCK PRICES NECESSARY?
IN THE ABSENCE OF INTEREST THERE MUST BE A VEHICLE THAT KEEPS SAVINGS IN THE DIGITAL REALM. IF THERE WERE NO INCENTIVE TO KEEPING SAVINGS IN THE DIGITAL REALM THEN SAVINGS WOULD POUR OUT INTO THE PHYSICAL WORLD.....THIS CAN NOT BE ALLOWED TO HAPPEN
What savings? People seem to be really confused about what real capital and wealth are. Same with savings.
Forget the news from Europe. Boring, predictable, and as always, just a bunch of lies/bullshit. Here's the real story of the day:
http://www.marketwatch.com/story/wells-fargo-robbed-historic-gold-nugget...
No point in robbing the bank for worthless FRNs, just go for the gold baby!
Nice. every time they call public attention to the real money; it helps a little more.
A ticking time bomb outside the EU, but critical to Israel and the USA is going to well and properly explode. Egypt, safe and secure after the Arab Spring and the Military Coup, is ticking away. Youth between the ages of 18 and 30 are experiencing unemployment at a fantastic % 70 + rate! Police have jailed 40,000 poor people to keep them in line, and just freed Mubarak's sons and order the courts to return 1 billion dollars in wealth to them, taken by the previous elected government. The military government, an extension of Israel and Mossad, the CIA and USA, is shooting people down in the streets, 25 yesterday, on a dail basis. WHile Al-Qaeda is growing in Sinai and elsewhere. Imagine a % 70 unemployment rate and police gunning them down on the street, the youth has a growing desire for revenge, and liberal politicians there offer no hope, as Liberals are now mostly controlled by the USA/Israel.
One more time bomb! And even Israel has issued a warning that certain Middle East nations are primed for a massive out of control social and terror explosion. They should know, as their Mossad is busy supporting Al-Qaea where ever they can be found.
Europe on the other hand is going to extend and pretend and print a trillion Euros and emulate the USA recovery, print till you drop. I expect the North African and Middle East disasters to unleah a wave of immigration into Europe like nobody has ever seen or even dreamed of. Europe is singularly unprepared to meet this coming human wave, as they can not cope with the 100,000 already pouring over the borders, with 1 million more getting ready to move out. Next, in the coming 5 years, Europe will face 10's of millions who will not be stopped from flooding into Europe. Fearing a clamp down on illegal immigration, preent day migrants are going more desperate and militant in their efforts to enter Western and Northern Europe.
France alone has what 5 million Muslims. Most unhappy, unintegrated and angry at their hosts for being too stingy with the hand outs. Multiply 5 million unhappy muslims by 10 and see where we are by 2020.
Europe as an economic unit is suffering from globalization and monetary dictatorship. Socially, Europe as an idea, and a free ideal is also nearly dead, killed by brain dead liberals and open border business types. One seeks cheap votes for left parties, the other seeks cheap labor for industry and services. Together, they will ruin then destroy Europe. But you can't tell them that! They will argue their multi cultural utopia ideal, as if it really IS going to happen. What would Churchill say? What would Eric Blair say?
The USA as an economic unit is suffering from globalization and monetary dictatorship"---also.
Indeed!
Jack, although you are a really credible cross-dresser, I could not help but notice that with every new profile pic you post of yourself, you look younger. Are you trying to some of us into illegal lusting?
Given what the banksters do, is anything really illegal or immoral anymore? Just feeling very Genghis Khanish lately.
She is over 30!
You're cool, Jack. (old hipster expression).
Can they push it green?
Sure looks like it will be an epic low volume Melt up.
I see a need for more trader bots, BLS accounting upgrayedds and some GDP massaging with a happy ending.
I love the French. Their food and wine, a fresh baquette in the morning, Louis de Funes, The seaside, Comte de Sade, Citroen 2CV etc.
That is Europe the huge and precious differences for which we love the indivudual countries.
But not in the same currency union. That is a crazy idea.
So why don't they just drop a couple of million "discouraged workers" and pork up the stats?
Yeah, Bankers "gaslight" US CONgress & the President & FED Managers... and the Rest of us about QE & LIRP/ZIRP, it's Design, IT'S PURPOSE, and it's RESULTS.
- This is how you destroy Capitalism & the Idea of America along with the State of Justice
Looks like HIGHER rates lead to more jobs! But then what do I know not having an economics Ph. D like Fed members who make the weighty decisions
Sort of like saying that Bernie Madoff's continued operation of his ponzi was "useless."
Kept him out of jail, and in the lap of luxury, just a bit longer each year.
The banksters need to repay us.
The guillotines await.
Lets face it Economics is not an exact science.
One Lark does does herald a summer and one chart does not refute or prove anything.
The french banks are 85 % stuffing all new money creation by ECB actions into casino plays; aka financial and not true economic plays. So as there is no correlation between ECB plays which have made money rates nose dive; and job creation.
Its thus only nORMAL that the graph proves that. That cheap money goes to carry trades in financial, sterile plays. Period; and we all KNOW that. So lets no pretend otherwise by projecting false correlations.
What is new is that the TRUE driver of economic flows; cheap oil and strong $, have now been unleashed.
And so in the current environment more parameters have been liberated to create growth in a more competitive Euro zone. But are they Sufficient even tho they be necessary?
If this situation persists and the collateral damage to Banks does not blow up the credit system, then we may see some infrastructure investment badly needed that could kick start a glimmer of hope in EU as the banks will be coerced by EU commission/ECB to loosen the flow to projects CONDITIONED by them and ECB's national consituant CBs.
In conclusion;
1° the graphic is not saying much.
2° the private debt and how its handled globally and the energy paradigm of fossil vs renewable will determine the future.
And on this second account I stay pessimistic, as there is no true solution to debt jubilee and to energy paradigm shift.
The problem with Keynesianism, and in fact with Oligarchical Collectivism in general, is that it is internally inconsistent.
It proposes simultaneously to inhibit smaller businesses via policy, and to effect an expanding economy via credit creation simultaneously. When the inhibited smaller businesses result in expanding unemployment and contracting consumer spending they confidently respond with lower interest rates...and then react with dismay when jobless people can't take loans at ANY rate.
Someone needs to tell the elitist G(r)ubers that you can't have shrinking total employment and expanding credit at the same time without outright money give-aways to the jobless. You can't get there from here.
Someone needs to tell our hubristic elites who have (at best) middling intelligence, that even WITH the give-aways (The Dole) you've only transferred the contagion from the untaxed jobless to the tax-paying middle class, because the jobless cannot make good on the transfer until they have jobs, and by repressing the middle class you create a new set of loan losses.
I get that MMT & Keynesian Economics is what we have in the USA... and maybe in UK & EU under their Social Market Economics.
Seems to me 6 years of LIRP/ZIRP/NIRP & QE are just Mafia Tricks.
- I'm not sure that 6 years of LIRP/ZIRP/NIRP or QE was ever in Keynes Mind, his intention, his theory, or what have you
- We hear that Keynes got rich since he was smart, but he did defend the BIS when it was totally corrupted by Nazi Deals, and saved it from termination when Ethos would demand "Clean-Up" and Dissolution of BIS (Keynes may have been bribed or influenced by US Secret Agents or European Secret Agents)
- We are not looking at either Science or Conservative Business Practices over the last 6 years, this looks Like RICO Violations, Anti-Trust Violations, Unfair Business Practices, Looting of National Wealth, Treason, an End to the State of Justice, and an End of Free Markets & Small Businesses as Large Multinationals are handed Advantages in Competition
I have been thinking about what this will create in Europe.
1. Fees for investment bankers and lawyers
2. A bonanza for private equity firms and hedge funds.
3. Opportunities for huge buyouts involving lots of mergers and work force redundancies.
Anyone who says this will unlock financing for small businesses borrowers and/or create jobs is either a liar or a complete moron.
This is not not an intellectual misunderstanding.
This is highway robbery in broad daylight.
Get the guillotines ready.
Excellent.
The flip side of low rates is that no one can afford to hold cash since it pays no return, or at least nothing close to inflation. If no one is willing to hold cash in the banks, there are diminished capital reserves for banks to loan from. I don't know if that's actually the main problem, but its just something to consider.
Go and tell Picketty.