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Even Chance Ecb To Start Printing Money


pl1
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(Reuters) - The European Central Bank could soon bow to pressure to print money to prevent a further escalation of the euro zone's debt crisis, with respondents in a Reuters poll giving an even probability the ECB would adopt a policy of quantitative easing. The poll of 50 bond strategists across Europe and the United States conducted this week gave a median 48 percent probability that the ECB will be forced to conduct outright quantitative easing (QE). That would be a highly controversial break from its existing policy, where it offsets government bond purchases in its Securities Markets Programme by draining liquidity from the system in separate operations. Of those who predicted the ECB would start QE, as the Federal Reserve and the Bank of England have done, a majority said it would happen by March 2012.

http://uk.reuters.com/article/2011/11/18/uk-poll-ecb-idUKTRE7AH0QX20111118

I still think if it happens it will be a one minute to midnight decision.

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It's easier to print and worry about it later.

How many times has the US raised the debt ceiling? 100+ times in a hundred years?

They will print the dollar, they will print the yen, they will print the pound, dammit, they will print the Euro!

Edited by Money Spinner
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They'd be stupid not to, what's the point in having a printing press just sitting around gathering dust when it can be printing up loads of fantasic new money. If I had one I know what I'd be doing. It's not my fault that some doofus in the past decided that paper and ink was a good representation of human worth. His bad, not mine. I'd print until I broke the damned machine. Then I'd buy a warehouse full of other bigger, better printing presses and keep going :P

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Reminds me of Eddie Hitler forging money in "Bottom".

Richie (Holding up triangle shaped note) : I think you'd better get the shape right first Eddie

Eddie : Now that is Welsh money

Richie : The Welsh haven't got any money!

Spudgun : No wonder they always vote Labour

Great episode!

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On a serious note, yes it looks very likely that the ECB will have to print.

With the global recovery running out of fresh money steam combined with concerns on the eurozone we are headed towards another serious dip.

Germany can't hold up the Euro alone given the prevailing climate, so either the world has to print enough to create enough global demand that the Euro can recover, or the ECB will have to print to bail itself out.

Ultimately it will probably be a combination of both (unless the Germans really dig their heels in).. but I expect the other CBs will be very pissed off if they have to support what they see is a EZ problem.

Will make for interesting viewing :)

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On channel 4 news last night they interviewed an old lady who owns a cafe- framed on the wall was an old banknote from the hyperinflation era in Germany- on the wall of a cafe!

The Germans are seriously neurotic about printing money- so for them it might be seen as the greater rather than lesser evil.

...more so when it's to rescue the undisciplined, mainly to the south....do they really want to go into partnership with them....?.....decision time at the final crossroads is here..... :)

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As far as I can tell, they can't do it legally. Still think Germany will revolt if this is proposed.

Cameron and Merkel had a press conference today - last question was specific about the ECB as lender of last resort, and they both ignored it. The only question worth answering, and they walked off without answering.

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