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SocGen Asks If "$60 Billion Of Money Printing Monthly Can't Get The Euro Down Then What's Next?"
One by one, everyone is not only realizing but admitting that if after 7 years of ZIRP, QE and currency warfare in general, nothing changes, then perhaps the 8th year (and 9th, and 10th) won't do much either. Here's Socgen:
Two months of QE for nothing. Well, not strictly true of course, for inflation expectations are up 30bp and Euro stocks are still up 15% since January even after investors withdrew $1.5bn last week. But look at the euro. EUR/USD yesterday returned over 1.1350, the highest level since the ECB announced QE on 22 January. The trade-weighted euro is up 3.4% from its April low. The Q1 GDP data were not bad, excellent in fact for Spain and France, but net exports are not contributing much. Perhaps this underlined the limitations of how a weaker currency, in the euro area at least, is no panacea because of the structural headwinds, and this does not offset the impact of the weak currency on the demand side. Former BoE governor King yesterday made a timely intervention, warning that central banks risk tipping the world into a currency war. We're there already, of course, but if $60bn per month of money printing by the ECB can't get the euro down (because of the USD), then what's next? The RBA has cut rates twice this year, and AUD/USD trades back over 0.8100. Is FX intervention next?
That, and every other form of "intervention" as well. Because the closer central banks are to losing all control, the more "intervention" there will be until the concept of a "market" disappears forever.
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What's next? Probably 120billion per month. LOL.
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com
How about free pizza and beer for everybody for a year with all that money?
They'll feel a lot better about it than this stuuuupid QE nonsense.
Sheeesh.. Do I have to run everything??
My sisters friend has been averaging 15k for months now
I don't pay your sister and her friend for sex, I pay them to shut up and leave - Charlie Sheen
Next ?
I guarantee they are already doing it. It would not surprise me if "current" USD "weakness" was a pre-planned CB intervention in order to give the EUR some breathing room before the Greek Poop hits the fan
it’s not just printing the money, they need to get it into the economy and get it spend.
And for example, 120 billion of extra money a month would create so muc misalocation of money, we’d be creating a bubble in every asset class and risk a massive inflation spike they can’t control.
But I remember a thing that happened in the year 2000 where every Irish person could loan money up to 60.000 euro’s at zero interest.
The entire concept failled because people spend it on different kinds of thing but it did get their economy on track. Sure it imploded 8 years later but that’s a extra 8 years! That’s 2 terms in politician lives!
So my guess it might happen in such a way again where people get to loan iterest free money for a fixed amount.
Use the monkey hammer! DUH!
Gold getting the chokeslam soon...
8.30!!
It's hammer time.
Almost a good track record as Old Faithful.
http://en.wikipedia.org/wiki/Old_Faithful
ASK THE SNB WHAT THE HELL ARE DOING
actually, nothing new. they had a hard peg, and now they have a soft peg. you could as well ask why they pegged the CHF to the EUR in the first place
... and the reason is: they needed, and still need, an... anchor
The anchor needed is simple, it's Gold. But the CBS propaganda worked well back in the late November 2014...
Also currency pegs don't work if it's unilateral and the party doing it doesn't have sufficiently reserve to maintain the peg.
Ideally for pegs to work, you need both parties to actively manage it like EUR/DKK and it's 2.25% band.
The problem on earth is not a shortage of paper claims on real assets but rather that a select few people have access to those paper claims which they continue to "create" out of thin fucking air with no real collateral obligations or connection to reality.
Europe, of all places, should recognize that such "let the majority eat cake" monetary experiments have been tried before.
fuck em, get long guillotine manufacturing, beat the rush...
crisis -> phyz ban -> fully retard digital world.
enjoy, next close your home.
Let's see how are they going to ban cash in Germany. Recently I had problem to pay for my purchase with a VISA, a lot of shops just don't accept these funky cards.
fees that cut into shrinking margins.
http://market-guru.co.uk/looking-for-a-pause-in-amzn/
Do these bankers ever STFU? FFS. Why would the Euro keep dropping? There are no fundamentals in the currency market. WTF do you think you are predicting? What? The Euro rate is set where the central bankers want it to be set. Do you seriously think the FX market is a market reacting to market forces? It is a blip on a screen that is placed there for you look at it. These banker idiots are as bad as cargo cults in the pacific. The real markets are not coming back.
Do these bankers ever STFU?
Where's Gordo?
I've watched and even traded those markets for a quite time now and I can tell you that those markets are the most manipulated of the world.
Who manipulate them ? Central banks and States !
My conclusion is only insiders from those circles can make decent amount of money regularly from those markets.
Can you imagine it, they are creating currency out of thin air but have audacity to demand that Greeks sell them everything they own, and everything they will own in the future, for that currency they are creating out of nothing! If they are smart, they will kill that Atlanticist 5th column which got you into this mess and nationalize everything Western banksters has taken from them by fraud (and everything their own Atlanticists liberals have stolen too)! End the Western colonization! Seize your sovereignity back!
"they are creating currency out of thin air..." is a nice and handy way of describing monetization, but it's not correct, and if you use that simplification too much you miss the forest for the trees
this fabled Q€ is 80% in the hands of the so called NCBs. this includes, btw, the Bank of Greece. and they buy sovereign bonds with this "freshly printed money"
What the fuck monetization has to do with the way Anglozionist financial system is organized, Scandinavo whore? They hadn't owned anything before they made those loans to the Greeks, Scandinavo whore. It's a fraud, Scandinavo whore! Do you know what fraud means, cunt? Those banksters should be executed because of that fraud, Scandinavo! I would add the likes of you too, for you are scumbags who are holding their ladders while they are stealing, isn't that right Scandinavo whore? Where do you work, Scandinavo? For whom?
And no, Greek bonds are not included in that purchases European Anglozionist bank is making, Scandinavo whore! And no, ECB is not 80% owned by national central banks (which are owned by whom exactly to start with, scum?)! If the Greek CB partly owns ECB, ECB would have been making purchases of Greek bonds righ now. And Goldman Sachs employee Mario Graghi woudn't be at the helm of that bank. Don't spray lies here, scum!
"Now we are in a completely opposite trend, and real interest rates actually declined, and that’s certainly very supportive of the real economy. That’s why I’m saying that we start seeing a pass-through from our monetary policy decisions to the real economy, through significantly lower real interest rates." Draghi (April 2015). Source: Scotia Bank.
How does the Lizard Man explain this?
Memo to US, Europe, and Japan:
You don't have a currency problem, you have a banker problem...
See Iceland for cure from the problem.
The Telegraph's Ambrose Evans-Pritchard on the Euro:
http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100028199/ge...
AEP has completely lost the plot -or more likely sold out, looking at recent revelations at the Telegraph- about 1.5 years ago.
It's €60bn, not $60bn, you stupid idiot.
Anyways, it's not about the Euro, it's about Ms. Yellen lacking the balls to raise rates.
Gold -- Schmold... It's not going anywhere until the great Piss-Off comes. The U.S. either royally pisses off Russia & China, or those two (and a few other nations in tow) collectively say - 'Piss Off' to the U.S. and its twisted foreign policy. Take your pick.
Direct FX intervention with Euro at 0.50 and Yen at 200...
It should help the global economy right now and creating (a lot) of inflation (and jobs), at least this is what the Keynesian teacher told me.