billybong Posted January 8, 2015 Share Posted January 8, 2015 (edited) and many economists are demanding that the European Central Bank hand out money to consumers to stimulate the economy. to boost the "1%'s" wealth. The retailers and energy companies etc will already have whatever price rises they can get away with in the pipeline. Edited January 8, 2015 by billybong Quote Link to comment Share on other sites More sharing options...
long time lurking Posted January 8, 2015 Share Posted January 8, 2015 Blimey. So 'whatever it takes' wasn't enough? Yep less is more apparently,,,,, runing out of BS? The Governing Council will meet to set monetary policy every six weeks, replacing the previous practice of doing so on the first working Thursday of each month Quote Link to comment Share on other sites More sharing options...
copydude Posted January 8, 2015 Share Posted January 8, 2015 Hmmmm. But what can the ECB do about this? Serious question. Price deflation seems to me quite a natural result of austerity. I have been wandering around Club Med countries these last couple of years and wages have fallen dramatically. That's without salaries, and pensions, being slashed several times over in Greece. I don't see the millions thrown on the poverty scrap heap going on a spending binge anytime soon. 50% youth unemployment in Spain . . . when do they think that's going to improve? The unemployment numbers (swelled somewhat by arrivals from the EU's 'Drang Nach Osten' ) have really driven down wages . . . a friend of mine in southern Italy can hardly earn half of what she did two years ago. 'Investors are worried'. My heart bleeds. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 8, 2015 Author Share Posted January 8, 2015 ECB risks undermining QE if it opts for compromise planLONDON - The ECB is considering three main options for pumping money into the struggling euro zone economy but two of them could hurt confidence in the bloc's most indebted states, defeating the object of the exercise. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 8, 2015 Author Share Posted January 8, 2015 Hmmmm. But what can the ECB do about this? Serious question. Price deflation seems to me quite a natural result of austerity. I have been wandering around Club Med countries these last couple of years and wages have fallen dramatically. That's without salaries, and pensions, being slashed several times over in Greece. I don't see the millions thrown on the poverty scrap heap going on a spending binge anytime soon. 50% youth unemployment in Spain . . . when do they think that's going to improve? The unemployment numbers (swelled somewhat by arrivals from the EU's 'Drang Nach Osten' ) have really driven down wages . . . a friend of mine in southern Italy can hardly earn half of what she did two years ago. 'Investors are worried'. My heart bleeds. Nothing, it's part of the natural economic cycle. The problem is people don't understand the risks associated with expansion, the rich certainly don't want to be less wealthy which means they'll try and keep on inflating the system. All the money pumped into rescuing and propping up the financial system should have been used to create new banks etc... Merrill Lynch, GS, and JP Morgan should have gone the same way as Bear Stearns and Lehmans. All of this would have been painful but the economy I believe now would be really recovering and small businesses would be driving the global economy. Instead we have corporate welfareism and the obsession with perpetual growth miracle. I have no idea how this will end, if they can find a new economic growth regime similar to the industrial revolution we might get out of this mess. However that doesn't appear on the horizon and we appear to be looking into the abyss and just seeing how long they can keep the plates spinning for. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 8, 2015 Author Share Posted January 8, 2015 Draghi Says Any ECB Measures May Include Sovereign-Bond Buying Mario Draghi said any stimulus implemented by the European Central Bank could include purchases of government bonds. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 9, 2015 Author Share Posted January 9, 2015 ECB Studies Bond-Purchase Models Up to 500 Billion Euros Why January Is Cruelest Month in Draghi Fight Against Deflation ECB Seen Reducing Volksbanken's Capital Requirement Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 9, 2015 Author Share Posted January 9, 2015 Greek debt held by ECB cannot be restructured - ECB's CoeureBRUSSELS - Greek government debt bought by the European Central Bank to help Greece during the sovereign debt crisis cannot be restructured, ECB Executive Board member Benoit Coeure said in an interview with France 24 TV station. Quote Link to comment Share on other sites More sharing options...
billybong Posted January 9, 2015 Share Posted January 9, 2015 (edited) "It is illegal and contrary to the treaty to reschedule a debt of a state held by a central bank. The European treaties are very clear on this," Coeure told the station. If it's "illegal" in the banking sense then Greece can just default and still get bailed out - then tell them all the time for remorse is over. Edited January 9, 2015 by billybong Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 10, 2015 Author Share Posted January 10, 2015 ECB’s Hansson Signals Skepticism on QE as Greece Clouds Stimulus The European Central Bank should slow its rush toward fresh stimulus as current measures haven’t had time to work and challenges including Greece’s political crisis make buying government bonds difficult, Governing Council ... Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted January 10, 2015 Share Posted January 10, 2015 ECBs Hansson Signals Skepticism on QE as Greece Clouds Stimulus The European Central Bank should slow its rush toward fresh stimulus as current measures havent had time to work and challenges including Greeces political crisis make buying government bonds difficult, Governing Council ... Its the bad cops turn today. Quote Link to comment Share on other sites More sharing options...
gf3 Posted January 10, 2015 Share Posted January 10, 2015 A Steve Keen type jubilee would be the best answer. But the rich and powerful wouldn't want that. The world is run by the rich for the rich. Quote Link to comment Share on other sites More sharing options...
copydude Posted January 11, 2015 Share Posted January 11, 2015 Its the bad cops turn today. Sure? Goldman Sachs Group Inc. has brought forward its forecast for the euro to fall to parity with the dollar by a year to 2016 Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 12, 2015 Author Share Posted January 12, 2015 Makuch says ECB ready for quantitative easing if needed, could handle Greek exitPRAGUE - The European Central Bank (ECB) is ready to launch quantitative easing if needed, but it is too early to say what exactly this policy would consist of, governing council member Jozef Makuch was quoted as saying on Monday. In other words we've not finished making the 5h1t up yet to justify it. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 12, 2015 Author Share Posted January 12, 2015 ECB's Noyer calls for cap on possible quantitative easing programme - paper ECB's Nowotny says Grexit would be catastrophe for Greece Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 12, 2015 Author Share Posted January 12, 2015 RBS bets ECB blitz to reach €4.5 trillion and reignite asset boom RBS claims Europe is in Deflation Motel: 'you can check in, but you can’t check out' Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 13, 2015 Author Share Posted January 13, 2015 ECB Warning to Greece Deploys Tactic Honed in Crisis The European Central Bank is threatening to choke off funding to Greece’s lenders in the hope it won’t actually need to. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 14, 2015 Author Share Posted January 14, 2015 Via Blog Robert Peston Economics editor "What investors want is a big and bold commitment to QE, rather than a timid, constrained trial - and it is thought that German assent is essential for an ambitious, substantial programme of bond purchases... But unless eurozone governments seize the moment to fix their finances and improve the competitiveness of their private sectors, the region will remain economically anaemic." Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 14, 2015 Author Share Posted January 14, 2015 Eurozone factory output increased by slightly more than expected in November, despite stagnant production in Germany. Industrial production rose by 0.2% in November, following small gains in October and September, the EU's statistics agency, Eurostat says. That was better than the flat reading expected by economists. Check out the EU recovery!! Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 14, 2015 Author Share Posted January 14, 2015 Draghi says ECB needs expansive monetary policy - paper 9:21am GMTFRANKFURT - European Central Bank President Mario Draghi said a loose monetary policy is needed to achieve price stability in the euro zone and the Governing Council is determined to deliver this. Ah yes price stability of prices going up! Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted January 14, 2015 Share Posted January 14, 2015 Draghi says ECB needs expansive monetary policy - paper 9:21am GMT FRANKFURT - European Central Bank President Mario Draghi said a loose monetary policy is needed to achieve price stability in the euro zone and the Governing Council is determined to deliver this. Ah yes price stability of prices going up! banker says bankers should get locked up for fraud free money. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 16, 2015 Author Share Posted January 16, 2015 ECB's Coeure says QE would anchor long-term financing conditionsPARIS - The aim of a euro zone quantitative easing plan would be to anchor long-term financing conditions and restore confidence in the bloc's inflation target, European Central Bank Executive Board member Benoit Coeure said on Friday in an interview. Quote Link to comment Share on other sites More sharing options...
Guest_northshore_* Posted January 18, 2015 Share Posted January 18, 2015 They're talking about each national central bank buying its own country's bonds, not the ECB and not real EZ QE. This seems counter to any idea of the EZ and euro as a one-for-all-all-for-one grouping, because it's trying to avoid additional risk transfer between countries and therefore again undermines what is apparently the entire point of the zone. After x years of admitting to but avoiding required risk sharing or political unity, they can still only suggest a plan that selectively benefits the usual candidates in an environment where those candidates are already the net abusers and beneficiaries of that system. Once again pandering to headlines, and pretending the politics and people don't matter. Which means in real life it's more 'all it takes talk' because if one or more nations don't or can't play ball will the ECB risk exits or not? If yes then this is Germany marking a change in tack. If no then there's an implied ECB backstop on it all and again this gets tested with their bluff being called again before long and it all starts over. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 18, 2015 Share Posted January 18, 2015 central banks cant do anything else other than issue money and account for their clients balances. I dont know why people think otherwise. Quote Link to comment Share on other sites More sharing options...
pipllman Posted January 18, 2015 Share Posted January 18, 2015 what makes the french / italian / spanish etc. central bank thinks it has any more chance of successfully defending a currency against the broader market than the BoE previously and, most recently, the SNB? the only difference is that 'all for one and one for all' might apply, with the ECB taking on the market with one of the member country central banks if that central bank was losing a battle in such a contest, I think the market can probably win a fight with any combination of country central bank + ECB the sooner the ecb and member countries accept that, the better imo Quote Link to comment Share on other sites More sharing options...
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