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moonriver

Ecb's "surprise" Stimulus, And 0% Interest Rates

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http://www.bbc.co.uk/news/business-35774629

The European Central Bank has cut its main interest rate from 0.05% to 0% as part of a package of measures intended to revive the eurozone economy.

The bank will also expand its quantitative easing programme from €60bn to €80bn a month.

The ECB also decided to further cut its bank deposit rate, from minus 0.3% to minus 0.4%.

The measures, including the decision to cut the main interest rate, were more radical than investors had expected.

Anyone here really very "surprised" about this move?

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And yet euro strengthens...

Yeah, I didn't see that comming. I guess the more signs of deflation confirmation... the more the currency will gain purchasing power in the future. :wacko:

See what happens next week :blink::lol: .

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they have not yet figured out ,that it is not merely a matter of monetary stimulus, but a matter of incessant micromanagement that creates the need for excessive stimulus.

you can cut rates to minus whatever percent, but if you try to tax the little people out of existence, or to inhibit/control the capacity to innovate your way out of problems...which they have been in quite a big way, then you have a problem.

mostly down to the arrogance/insecurity of the people in charge..wishing to stay in charge and pull up the drawbridge on any potential young upstarts that might threaten their position.

Bad news for these guys..this is darwinianism in motion.....shit happens.

you grow up, you might get lucky and be alpha male for a few years, then you start to get fat,old and grey and get supplanted by someone a bit more virile.

deal with it.

if you are lucky your mate + children will stick with you and sod off into the sunset to grow old gracefully.

if not, and you fight what nature has ordained, there comes a point where you will be really taught who is the new boss,in the most brutal fashion.

and it will be repetitive and increasingly harsh kicks in the goolies until you get the message.

Edited by oracle

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deal with it.

if you are lucky your mate + children will stick with you and sod off into the sunset to grow old gracefully

Then you emigrate to Thailand, find a new wife, and life begins again.

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They're mad. Money printing doesn't help the real economy at all.

Dont you think they dont know that.

The banks are insolvent and there solution is money printing ( which is little more than indirect theft from savers/workers/future taxes ) and another housing bubble.

If that fails is state backed bail in, which is actual direct theft from savers.

The bankers are in charge, make no mistake about that.

I think I can understand now why 1930's German people followed some nutter into a world of destruction.

Edited by TheCountOfNowhere

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Dont you think they dont know that.

The banks are insolvent and there solution is money printing ( which is little more than indirect theft from savers/workers/future taxes ) and another housing bubble.

If that fails is state backed bail in, which is actual direct theft from savers.

The bankers are in charge, make no mistake about that.

I think I can understand now why 1930's German people followed some nutter into a world of destruction.

Very good.

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I was under the impression that the markets were expecting more.

wot, like a return to the market?

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Is that a sarcastic "you mad nutter" very good or an actual very good ?

Does anyone else feel like they are going mad ?

This very morning. Stuck for hours in a vast concretion of 15 and 16 plate motors on the M42 as far as the eye could see trying to imagine how different things would have been if the GFC hadn't happened? I couldn't. So successful have the Keynesians been in eradicating every living memory of recession, it's impossible to recall a time when the UK wasn't booming. Even the business cycle now appears to be a thing of the past, Gordon Brown's egocentric boast come true at last.

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I'm surprised by our lack of surprise.

They know it doesn't work but have to keep doing it as otherwise they'd have to admit that their policies haven't worked.

The negative market response was that they they expected a bigger stimulus.

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This very morning. Stuck for hours in a vast concretion of 15 and 16 plate motors on the M42 as far as the eye could see trying to imagine how different things would have been if the GFC hadn't happened? I couldn't. So successful have the Keynesians been in eradicating every living memory of recession, it's impossible to recall a time when the UK wasn't booming. Even the business cycle now appears to be a thing of the past, Gordon Brown's egocentric boast come true at last.

Keynesianism wasn't about eradicating recessions.

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I'm surprised by our lack of surprise.

They know it doesn't work but have to keep doing it as otherwise they'd have to admit that their policies haven't worked.

The negative market response was that they they expected a bigger stimulus.

They have already admitted that their policies haven't worked. The Bank for International Settlements (BIS) Head Economist has publicly admitted it and that was covered in the mainstream media in the middle of last year referring to the published report on the subject by the BIS.

He was quoted with a similar message in the minstream media just a few days ago - mentioned already on this site.

Earlier this year a previous Head Economist of the BIS came out with a similar message (although maybe not quite so direct about the failure of the ZIRP/QE policy).

http://www.ibtimes.co.uk/financial-apocalypse-ex-bis-chief-economist-william-white-warns-epic-debt-tsunami-worse-2007-1538989

"The only question is whether we are able to look reality in the eye and face what is coming in an orderly fashion, or whether it will be disorderly."

The BIS board is entirely made up of central bankers including Draghi.

The BIS Board of Directors

Chairman: Jens Weidmann, Frankfurt am Main

Vice-Chairman: Raghuram G Rajan, Mumbai

Mark Carney, London

Agustín Carstens, Mexico City

Luc Coene, Brussels

Jon Cunliffe, London

Mario Draghi, Frankfurt am Main

William C Dudley, New York

Stefan Ingves, Stockholm

Thomas Jordan, Zurich

Klaas Knot, Amsterdam

Haruhiko Kuroda, Tokyo

Anne Le Lorier, Paris

Fabio Panetta, Rome

Stephen S Poloz, Ottawa

Jan Smets, Brussels

Alexandre A Tombini, Brasília

François Villeroy de Galhau, Paris

Ignazio Visco, Rome

Janet L Yellen, Washington

Zhou Xiaochuan, Beijing

So they've admitted it so why continue with it as it's just digging a bigger and bigger hole for the general economy.

The only explanation can be that they do it because they can and for their own wealth it's the perpetual motion machine to increase their own and their cronies own wealth through Quantitative Trousering - the general economy is no longer their concern.

Edited by billybong

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I don't understand who it is they are protecting.

Top bankers must already be minted thanks to the last twenty years of loose monetary policy. The position of the super-rich surely must be unassailable - they already have nice houses and yachts and basements full of expensive wine. I don't see how a correction could actually hurt them, except maybe on paper?

Why continue to peddle even more unsustainable debt, devalue currencies, deny whole generations homes...

It just seems perverse.

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I don't understand who it is they are protecting.

Top bankers must already be minted thanks to the last twenty years of loose monetary policy. The position of the super-rich surely must be unassailable - they already have nice houses and yachts and basements full of expensive wine. I don't see how a correction could actually hurt them, except maybe on paper?

Why continue to peddle even more unsustainable debt, devalue currencies, deny whole generations homes...

It just seems perverse.

In a word: greed. They can never have enough and don't care a toss for anyone else.

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I don't understand who it is they are protecting.

Top bankers must already be minted thanks to the last twenty years of loose monetary policy. The position of the super-rich surely must be unassailable - they already have nice houses and yachts and basements full of expensive wine. I don't see how a correction could actually hurt them, except maybe on paper?

Why continue to peddle even more unsustainable debt, devalue currencies, deny whole generations homes...

It just seems perverse.

I agree. You begin to wonder whether they actually want the system to break. So they can create a fundamentally different kind of system? Who knows, but I am pretty sure the stated reasons aren't the real reasons.

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This very morning. Stuck for hours in a vast concretion of 15 and 16 plate motors on the M42 as far as the eye could see trying to imagine how different things would have been if the GFC hadn't happened? I couldn't. So successful have the Keynesians been in eradicating every living memory of recession, it's impossible to recall a time when the UK wasn't booming. Even the business cycle now appears to be a thing of the past, Gordon Brown's egocentric boast come true at last.

I generally enjoy your posts but this one really sums up how I feel.As stimulus follows stimulus,people have begun to think that capitalism is just about boom.Unfortunately,it's creating an even more dangerous situation than the one the stimulus was meant to solve.

I come on here to remind myself I'm not alone.

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