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German FinMin Warns Monetary Policy Is "Moving In A Very Dangerous Direction"
"Monetary policy can’t solve the problems we face," warns German finance minister Wolfgang Schaeuble, daring to admit that monetary policy-makers "are moving in a direction which is very dangerous" with regard to excess global liquidity. Amid fears of fed tightening and demands for BoJ and PBOC easing, it appears Europe's leadership fears the consequences of a "market bubble" as the global economy is awash in more public and private debt relative to GDP than at any time post-WWII.
- *SCHAEUBLE: NEED ECONOMICALLY STRONG EU TO TACKLE REFUGEE CRISIS
- *SCHAEUBLE WARNS OF MARKET BUBBLE WITH EXCESSIVE LIQUIDITY
- *SCHAEUBLE: RUSSIA CONFLICT TO BE DECIDED BY ECONOMIC STRENGTH
As Bloomberg details, Schaeuble sees a solution in more reforms...
“Structural reforms” urgently needed to solve problems in real economy, including regulating shadow banking sector.
And adds that:
European economies need to strength to be able to grapple with refugee crisis, other crises.
Government spending mustn’t exceed GDP growth and EU reform efforts are gradually leading to recovering economy
Finally, to Russia...
Conflict with Russia will be decided in the long term by economic strength
* * *
Ironic really that at the same time, his demonic money-printing colleague is calming global turmoil with promises of more Q€ - which if it took place would leave Schaeuble's "precious" Bunds the most bubbliciously mispriced assets in the world (based on the current capital key).
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"Government spending mustn’t exceed GDP growth" that's comedy gold Jerry! Who said Germans don't have a sense of humor?
Bring out the gimp.
oh, that's mean
"Amid fears of fed tightening and demands for BoJ and PBOC easing" (read constant chaos)
Hence the need for unity and control: one global market, one currency, one central bank, one government. Otherwise the world/separate governments will continute this process of economic battles and the people will be tugged to and fro, as we are witnessing now. Not Huxley's, Brave New World but one much better.
(sarc totally on)
Wolfgang has battle fatigue, knows he is pissing into the wind.
Yes Ive read of such a system,involves a mark of the beast or something to participate
Why not just crush every other country like you did to Greece? Be the victors...you kno, inherit the lot. Just take th fkking gloves off, and stop hiding behind fake morals?
Federal expenditures as a percent of GDP:
https://research.stlouisfed.org/fred2/graph/?g=1Ove
Sounding the alarm AFTER the ship hits the iceberg...as he steps into one of few lifeboats with HIS cash and pensions safe and secure...
Precisely. If what he states his true we are already over the cliff. This is ridiculousness at its finest.
It is true, which is why we will get QE forever, until it explodes.
More "Comedy Gold: "NEED ECONOMICALLY STRONG EU TO TACKLE REFUGEE CRISIS"
Read a story the other day about a "refugee" living in the EU..can't find work...lives off 1500 Euro monthly welfare check..wait till he writes home of how "awful" life is on the welfare rolls...1000's of "refugees" will turn into MILLIONS practically overnight...
PS. Note to German FinMin...you need a fence, dogs, and machine guns to tackle the refugee crisis..either now, or later.
PSS. You also need to tell the USA to FUCK OFF and stop destroying these Muslim Nations that are hemorrhaging "refugees"...
Luke Tilley, chief economist at Wilmington Trust and former economic advisor to the Federal Reserve Bank of Philadelphia says...
“I think we need to remember we’re coming out of a very deep recession and have had very slow and steady growth coming out of it. [There are] no real indications that there are bubbles anywhere, and I think that really justifies our position that we’re going to have a longer recovery here to come,”
~~~~~~~~~~~~~~~
NEVER A BETTER TIME TO BUY (what i have to sell)!
Hey Luke, if you want to see a bubble, come visit me...I'll show you a 900sqft house/shack (lead paint peeling and all) in the ghetto selling for $100k..where the residents median income is $15k and they're all driving late model $30k+ cars/trucks...nope, no bubble there...
I know, right? Of all the reasons to address insane monetary policy, it's because otherwise they won't have enough free shit for invading Muslims?
Meanwhile in other news...
Tragic Aylan Kurdi’s father was the PEOPLE SMUGGLER driving doomed boat, claims survivor
http://www.express.co.uk/news/world/604535/Aylan-Kurdi-father-people-smu...
Excellent. Alas those two recommendations are two things that will NEVER happen. Bringing the Muslim shock troops IN to Germany is Job Number One for those clowns. ALL our clowns.
Another old white guy who’s been at the helm for 50+ years and now just figuring out there might be a problem.
Seems suspicious that a man can claim malfeasance after 50+ years in service.
Schaeuble vs Draghi, its now OUT in the OPEN.
The game between German financial model and Anglo saxon model is now on !
Wither Eurogroup in this upcoming battle? And will Club MEd burn as expiatory victim of the north south divide in Eurozone?
France hanging on to Mutti by her coat-tails.
The EU is splitting into 3 pieces.
North, South & East.
While the North v South split has kinda been a "no shit" for a while, the East-West split is new, but given the increasing numbers, I don't think it will be going anywhere anytime soon.
Long may the East prosper and grow.
There is no alternative model.
It is exactly the same.
Their financial models are identical.
Their economic policies differ by decades, not policy, per se.
Germany pretends to monetary responsibility, with a debt-based fiat currency, and while pursuing a mercantilist economic policy, in which exports are subsidized, and loans are given to those who buy the exports.
The debts those loans represent are then used to fuel monetary expansion.
This is identical to Britain's past policy in every way. But eventually, the amount of debt becomes excessive, which impairs industrial activity, and then financialization occurs.
If Germany continues as at present, in a some decades it will be exactly where britain is today - a financial economy with globalized industry who operates primarily off-shore.
With reasonable tariffs & customs & duty fees -- keeping manufacturings at home shouldn't be a problem.
Something tells me the globalized model is going to shrink worldwide.
One other thing : Anglo model is based on Stocks creating wealth whereas Germany is ALL bank-industrial alliances; aka its a bond market. Stocks less important than in anglo model.
The german bourse is smaller relative to GDP.
Maybe your financial advisor told you that.
There is no differing model.
The model arises from the nature and structure of the currencies and their integration with the banking system. The rest is temporal noise indicating only where they are in the lifecycle of that system.
They have Greece to fleece now as a colony and are working on Spain,Portugal and Italy its a very old plan except this time theres no tiger tanks
Time to move past the pontifications and gyrations from the Ivory Tower geniuses and just do what needs to be done.
ABOLISH the Federal Reserve
Arrest all living current and former Fed governors (public execution probably more fitting).
That would be a good start but there are a number of banksters and political skanks to add to the list.
I completely agree. I'm trying to focus on simplicity and efficiency. This farce dates back to 1871 or even well before that (certainly 1913 was a major chasm) and enough is enough. This isn't rocket science. What is ONE thing the world needs that can then lead to many other positive developments? End the Fed. Concurrent with that and/or shortly afterwards abolish the Bankster collection agency known as the IRS.
Screw you SCHAEUBLE. You are one of the scumbags that created this cluster fcuk.
Schauble just plays the oppostion, he's a similar motherfucker as Draghi & Co from the Goldman Sachs folks
Is that Dr. Strangelove?
He just woke up from to reality?
Careful now Wolfgang, the last time you Germans tried to make changes to the financial system you were at war before you knew it. Something to do with central banking and usury I recall.
Refugees(muzzies) have the first right over the resources of Germany...!/S
Our new Western privileged class.
"Yes, yes, of course, Abdul. Whatever you want." Translated from the original French, German, and British.