Jump to content
House Price Crash Forum
Realistbear

E C B Are Busy With Q E 2 And No One Has Really Noticed

Recommended Posts

http://uk.finance.yahoo.com/news/Europe-pins-hopes-ECB-crisis-reuters_molt-2907263590.html?x=0

MADRID/ROME (
Reuters
) - The euro rose and borrowing costs for crisis-hit euro zone countries fell on Wednesday amid speculation the ECB could take decisive steps to combat turmoil that has stoked contagion worries in the United States and Asia..../
But traders said the ECB was supporting the market through bond purchases on Wednesday.
The Frankfurt-based central bank declined to comment.
A rising number of economists say the ECB may need to throw out its rule book to save the euro, particularly as governments seem to be running out of ideas for restoring confidence in their bold 12-year old currency project.

Euro up and down like a mad yoyo today--so are they buying bonds (QE2) or only rumoured to be doing so?

FTSE and DOW well above 2% up today destroying all hope of any black days this week.

Share this post


Link to post
Share on other sites

http://uk.finance.yahoo.com/news/Bonds-slide-eurozone-hopes-digilook-43924366.html?x=0

On Wednesday 1 December 2010, 16:26
LONDON (ShareCast) - Bonds fell in main markets as hopes that the European Central Bank (ECB)
will take action on the eurozone debt crisis whetted appetites for more adventurous investments
. Bonds in peripheral markets advanced for the same reason.
European shares rallied sharply following signals from European Central Bank President Jean-Claude Trichet last night that it would intervene to stabilise the eurozone debt situation.
Trichet hinted the ECB may significantly expand its government bond purchases programme and added it is determined to resolve the escalating eurozone crisis.

Euro QE2 it is.

I wonder who really wants an adventure at this stage of the collapse?

Notice how printing or QE2-ing causes currencies to RISE. The opposite effect to anticipated.

Edited by Realistbear

Share this post


Link to post
Share on other sites

Magic printing press time..... all roads lead to Harare!

As I said the longer you hold off an apology to Injin and Cnago the more egg on your faces.... and currently you have the mother of all omlettes covering half the known universe. :lol:

Share this post


Link to post
Share on other sites

Magic printing press time..... all roads lead to Harare!

As I said the longer you hold off an apology to Injin and Cnago the more egg on your faces.... and currently you have the mother of all omlettes covering half the known universe. :lol:

Injin et al do nto believe in deflation. Jury still out on that one and printing has so far had the reverse effect on currencies. $ up on Bernanke's printing and Euro up today on ECB bond purchasing (printing).

So why deflation? The black hole is hundreds of times larger than their ability to print.

Edited by Realistbear

Share this post


Link to post
Share on other sites

Injin et al do not believe in deflation. Jury still out on that one and prining has so far had the reverse effect on currencies. $ up on Bernake's prining and Euro up today on ECB bond purchasinig (printing).

So why deflation? The black hole is hundreds of times larger than their ability to print.

Which gives a signal to the ones holding the printing press simply to print MORE. We're in the opening stages, sooon my pet they'll print trillions every day... still deflating? Then quintillions a second, bank notes will be in powers.

Reset to zero everything of value the means of production and land suddenly has property of the BoE on it.

Or they will simply make money 100% electronic and therefore can 'print' to infinity with ease, just move the decimal point on the BoE and government bank balance a trillion or so places every day.

As said Hyperinflation is coming, when there are accountancy seminiars about how to account for hyperinflation and the monthly accountants magazine comes round talking about how to account in hyperinflation there is areason for this occurance.

Edited by ken_ichikawa

Share this post


Link to post
Share on other sites

http://uk.finance.ya...924366.html?x=0

On Wednesday 1 December 2010, 16:26
LONDON (ShareCast) - Bonds fell in main markets as hopes that the European Central Bank (ECB)
will take action on the eurozone debt crisis whetted appetites for more adventurous investments
. Bonds in peripheral markets advanced for the same reason.
European shares rallied sharply following signals from European Central Bank President Jean-Claude Trichet last night that it would intervene to stabilise the eurozone debt situation.
Trichet hinted the ECB may significantly expand its government bond purchases programme and added it is determined to resolve the escalating eurozone crisis.

Euro QE2 it is.

I wonder who really wants an adventure at this stage of the collapse?

Notice how printing or QE2-ing causes currencies to RISE. The opposite effect to anticipated.

By whom. :D

Share this post


Link to post
Share on other sites

Injin et al do not believe in deflation. Jury still out on that one and prining has so far had the reverse effect on currencies. $ up on Bernake's prining and Euro up today on ECB bond purchasinig (printing).

So why deflation? The black hole is hundreds of times larger than their ability to print.

I beleive the ECB were accepting greek bonds as good collateral for loans...part of the bailout for Greece. An unpayable bond as collateral is printing in my mind.

Share this post


Link to post
Share on other sites

Injin et al do nto believe in deflation. Jury still out on that one and printing has so far had the reverse effect on currencies. $ up on Bernanke's printing and Euro up today on ECB bond purchasing (printing).

So why deflation? The black hole is hundreds of times larger than their ability to print.

It's a topsy-turvy world right now, that's for sure. As Bear says, printing currencies is seemingly causing them to strengthen! What the hell is going on?

Let's peak behind the curtain. If we look at the dollar and euro verus gold these last few days, we can see that while they may be strengthening versus each other (depending on the day of the week) and other currencies, they certainly aren't against gold (real money that cannot be adulterated by feckless govts.).

http://www.usagold.com/gold-price.html

We are all experiencing inflation in fiat, even the manipulated govt. figures stipulate this, but if you're holding gold, everything is getting cheaper as gold's price rises and its purchasing power increases. That's your DEFLATION, right there!

Conundrum solved. :ph34r:

Edited by General Congreve

Share this post


Link to post
Share on other sites

By whom. :D

mainly by the emotional types who dont actually have a clue as to what drives markets and therefore without fail end up exactly on the wrong side of a move

Edited by Tamara De Lempicka

Share this post


Link to post
Share on other sites

Injin et al do nto believe in deflation. Jury still out on that one and printing has so far had the reverse effect on currencies. $ up on Bernanke's printing and Euro up today on ECB bond purchasing (printing).

So why deflation? The black hole is hundreds of times larger than their ability to print.

I'll bite.

What is the limiting factor on ability to print? Wearing out the spring on the zero key? <_<

Share this post


Link to post
Share on other sites

mainly by the emotional types who dont actually have a clue as to what drives markets and therefore without fail end up exactly on the wrong side of a move

You have truly rationalised the irrational. We should all bow to your undoubted omnipotent wealth.

Share this post


Link to post
Share on other sites

I'll bite.

What is the limiting factor on ability to print? Wearing out the spring on the zero key? <_<

You are wealthy, you own a printing press which can print paper money, you also own 1000 slaves who you pay with paper money you print. So you control wages inflation and money supply, to maintain your wealth you drive your slaves wages down and down so you get richer and richer, you do not print more paper to get richer as this will just devalue the paper you already have printed.....................

Edited by Panda

Share this post


Link to post
Share on other sites

I'll bite.

What is the limiting factor on ability to print? Wearing out the spring on the zero key? <_<

The Bond Market.

The market has a way of frustrating those who abuse it. Sort of like the laws of physics--the more you push the more something else pulls.

Share this post


Link to post
Share on other sites

You are wealthy, you own a printing press which can print paper money, you also own 1000 slaves who you pay with paper money you print. So you control wages inflation and money supply, to maintain your wealth you drive your slaves wages down and down so you get richer and richer, you do not print more paper to get richer as this will just devalue the paper you already have printed.....................

If I am wealthy I am 100% sure my wealth is not in £000000 under the matress or in a bank account.

It will be in assets, the value of which will float to match my new printy paradigm and my debts effectively erased.

Look at the way money is being printed and used to buy bank assets. It is being done specificaly in a way that the "winners" get their debts erased while the slave's pay is not increased.

Share this post


Link to post
Share on other sites

The Bond Market.

The market has a way of frustrating those who abuse it. Sort of like the laws of physics--the more you push the more something else pulls.

Please expand.

Why am I reliant on the bond market if I am printing?

Share this post


Link to post
Share on other sites

If I am wealthy I am 100% sure my wealth is not in £000000 under the matress or in a bank account.

It will be in assets, the value of which will float to match my new printy paradigm and my debts effectively erased.

Look at the way money is being printed and used to buy bank assets. It is being done specificaly in a way that the "winners" get their debts erased while the slave's pay is not increased.

Everything is relative..........Assets valued in monetry terms, money loses its value due to an increase in supply, the asset is valued relative to money, so the asset must fall in value relative to the money created. The asset can only increase in value if a slave can pay more for the asset, this is either through an increase in wages, nothing there, or an increase in access to credit which the slave can pay back, no wage increase, nothing there move along.............

This is why we are at peak debt, peak serviceability, any wage increase will make the wealthy poorer.................

Share this post


Link to post
Share on other sites

When and if a depression hits. Jobless masses do not pay high prices for stuff.

just means I can't afford to buy it, so it doesn't get sold.

A £500k ferrari isn't going to get cheaper just because my wage drops - they'll just not sell it to me.

Same with gas, electricity, etc.

Houses, however...

Share this post


Link to post
Share on other sites

When and if a depression hits. Jobless masses do not pay high prices for stuff.

Quite so.

However, if the suppliers of those items have, themsleves, sufficiently high operating costs, they will be unable to drop their prices to the level the jobless massess can afford unless their suppliers drop their prices.

In other words, the suppliers at the bottom of the supply chain need to drop prices before anyone else can. This would be less criticallly necessary if everyone else up the supply chain was not so hocked up to the eyeballs in debt. But, since they are, they cannot drop prices unless their supplier down the supply chain does so first.

So, the question is, are the primary producers under sufficient pressure to drop prices? Or, are they even capable, for all of the reasons above? If they are not, all that will happen is growing and grinding poverty for the jobless massess with no end in sight.

I guess, the first demand destruction in prices is going to come from items that are not absolutely necessary and are bought with debt. However, for items that are bought with cash and are daily essentials, prices will not drop easily at all.

Edited by tallguy

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.