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Top German Body Calls For Qe Blitz To Avert Deflation Trap In Europe

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Head of German Institute for Economic Research demands €60bn of bond purchases each month to halt contraction of credit and avert Japanese-style trap Link

They want QE and and avert Japanese-style trap? Hmmmm......... :blink: ?

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And yet Eurostat reported a lowering of debt and fanfared that as a triumph.

more debt=good, less debt = bad.

I wish Economics was a science.

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Well if they do, would this not streangthen the pound more (in the short term)? As mad as it all sounds i am still waiting for a pound to dollar high - im hoping for around 1.00 GBP = 2 USD ...please.

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They want QE and and avert Japanese-style trap? Hmmmm......... :blink: ?

they STILL haven't grasped the fact that OVER-TAXATION and OVER REGULATION are the cause of europes ills.

diluting the money supply does nothing to cure incessant meddling.

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Well if they do, would this not streangthen the pound more (in the short term)? As mad as it all sounds i am still waiting for a pound to dollar high - im hoping for around 1.00 GBP = 2 USD ...please.

Aint gonna happen IMO. Might reach 1.80...cant see 2 tho.

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Aint gonna happen IMO. Might reach 1.80...cant see 2 tho.

I agree, but there is always an overshoot. It seems to be all guns blazing until the next election, no matter what the consequences, so plenty of time to get there. Not fully sure what to do with the cash savings though...

Was just reading Mr Armstrongs view on the Euro:-

"The rise in the Euro is indicative of an economic decline as we saw with the Yen in Japan and the US dollar back in the early 1930s. It was the rising dollar back then that led to Roosevelt's confiscation of gold and the devaluation of the dollar. So the trend in the euro is not yet complete. The higher it rises the greater the economic decline."

"..........The US dollar will rise exponentially after 2015.75 with the US economic decline and the ECM aside from the geopolitical risks. When the US economy turns down, then we will see the rise in the dollar really take off as normal."

http://armstrongecon...economics_blog/

What a mess :(

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"It is high time for the ECB to act. Otherwise Europe risks falling into a dangerous downward spiral of sliding prices and declining demand", he wrote in Die Welt.

They have to put in the words "and declining demand" because everyone likes sliding prices and people go out to buy when prices go down. It increases demand.

Why do stores have sales with discounted prices to shift stock - even sales that have been on for years and years with some shops. Debenhams always seem to have a sale on - likely they would go bust otherwise.

It's preposterous - and why are they prepared to ditch their successful economy with something that has proved to be so catastrophic for them in the past.

Edited by billybong

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The Institute said the OMT should not be confused with Fed-style bond purchases, which are a pure monetary tool rather than a bail-out of specific states in trouble. It also warned that policy paralysis may ultimately do more damage to the ECB's credibility than taking a gamble with emergency measures.

Go on - take a gamble.

It didn't work out the last time but that was then.

Be lucky.

Edited by billybong

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The International Monetary Fund has warned that the deflation risk in the eurozone may now be as high as 20pc, leaving the region vulnerable to an external shock.

Mr Fratzscher said the ECB should buy the government bonds of all eurozone states - including German Bunds - on a pro-rata basis to lift the whole region off the reefs.

Blimey the whole region's on reefs :o That's something else they never let on about.

They should try some of those bouyancy aids instead.

rubber_duck_buoyancy_force_diagram.gif

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Top German body calls for free hand out to bail out the feckless just like the jolly old English got.

From what I understand the Germans have no desire to Q.E. as they remember what happened the last time they "Q.E.'d" in Germany.

Edited by TheCountOfNowhere

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