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Haha Money Printer Go BRRRRRR


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42 minutes ago, captainb said:

Holding cash is very risky medium term.

.....don't worry won't be long and cash will no longer exist.....that machine is almost good as  obsolete.....;)

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If somebody had told me at christmas that by early June the EU would have 1.35 trillion Euros worth of QE I would have laughed hysterically at them. But here we are. 

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1 hour ago, Simhadri said:

Why would Euro surge if they doubled printing of money.

It should ideally lose value against dollar. 

Because it is not just about whether you print, it's about how much you print relative to your own GDP and relative to everyone else. And also how much that meets the market expectations.

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1 hour ago, longgone said:

so you print more yet the value increases ?  wow why not just deposit 250k in those prudent savers accounts who bothered in the first place. 

Why give money to savers so they can stuff it in bank accounts ? They don't need it to survive and it won't stimulate the economy.

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1 hour ago, Simhadri said:

Why would Euro surge if they doubled printing of money.

It should ideally lose value against dollar. 

Because the money will be used to purchase distressed eurozone debt and arrest a deflationary spiral in asset prices. It also signals to the market that the ECB is prepared to do 'whatever it takes' to save the European Project, with none of the delays and muddles that characterised the EU's response to the GFC. Thirdly, EU leaders are about to start haggling over a 750 billion euro Covid recovery fund. Part of the proposals include the issuance of joint debt managed by the EU itself rather than individual govts, a momentous step towards full fiscal and monetary union. And finally, Mrs Merkel has just pushed through an enormous, radical stimulus package of her own aimed at ensuring a v-shaped recovery for the resilient but battered German economy.

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What the hyperinflation flappers always miss about monaaaayprinting is that the printed money is put into the economy but an equivalent amount of private sector wealth held in whatever assets the CB buys (gov bonds, stocks, corporate debt etc) is removed from the economy.

When the economy is at peak debt already its pretty much a wash, all that liquidity ain't going anywhere, now or in 20 years time. CB injects short term liquidity and withdraws long term stable stores of value. Meh.

So, it doesn't do much harm IMO, but likewise doesn't do much good either. They call it pushing on a string.

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56 minutes ago, Gigantic Purple Slug said:

Why give money to savers so they can stuff it in bank accounts ? They don't need it to survive and it won't stimulate the economy.

well just buy savers a house then they can stimulate the economy with their savings knowing they have somewhere secure to live. 

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37 minutes ago, scepticus said:

What the hyperinflation flappers always miss about monaaaayprinting is that the printed money is put into the economy but an equivalent amount of private sector wealth held in whatever assets the CB buys (gov bonds, stocks, corporate debt etc) is removed from the economy.

When the economy is at peak debt already its pretty much a wash, all that liquidity ain't going anywhere, now or in 20 years time. CB injects short term liquidity and withdraws long term stable stores of value. Meh.

So, it doesn't do much harm IMO, but likewise doesn't do much good either. They call it pushing on a string.

Thanks, I love gems like this.

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5 hours ago, Dreamcasting said:

And the pound is down a lot against the euro today

 

Yes, starting to appreciate my new model globally diversified pension.

Even as the US was down a bit and GDPUSD=X was up, my fund is still up,

 

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7 hours ago, Locke said:

(...)lower%20yields%20force%20households%20to%20save%20more_0.jpg(...)

Um... Is that not just an illustration of whether monetary policy was ahead of, or behind the curve?

In the later part of the last millennium, reductions in interest rates drove consumption.

Now, falling consumption is followed by desperate (but lagging) reductions in rates.

 

Edit. Also, for full information, I'd like to see 10 versions of the same chart, with the split between periods  shown for 2001, 2002, 2003 etc, all the way to 2010 .

Edited by Timm
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11 hours ago, Gigantic Purple Slug said:

Why give money to savers [...] it won't stimulate the economy.

I'm sure you already know, but economies are driven by savings.

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  • 415 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%



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