The ECB cowardly dogs: printing money in action!

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The ECB cowardly dogs: printing money in action!




by Christophe » 23/01/15, 14:53

After Switzerland: https://www.econologie.com/forums/tempete-fi ... 13700.html

Another big financial news of the week, the ECB uses the same method as in the USA, the money counter against debt!

Analyzes: http://www.france5.fr/emissions/c-dans- ... 015_296635

Not sure that the 2 decisions are not linked ...

To great ills, great remedies. At the end of the meeting of the Board of Governors of the European Central Bank, Mario Draghi announced this Thursday the launch of a historic offensive: the ECB will buy back 60 billion euros of public and private debt per month, until September 2016. Unprecedented in the euro zone, this program called "easing quantitative "aims to distance Europe from the threat of deflation and a crisis combining sluggish growth, falling prices and unemployment.

"We are in a situation where we should lower the key rate even further [the cost of borrowing money, editor's note], but this is no longer possible", explained the boss of the ECB in an interview with the German weekly Die Zeit, published last week. Already at zero, the rates cannot effectively turn negative. "At that point, we have to resort to unconventional measures, which is to change the size and composition of the ECB's balance sheet." What specialists call "quantitative easing" (QE). Clearly, like the United States, Japan and Great Britain, and after months of tug-of-war with Berlin, Mario Draghi has decided to run the printing press, and to inject 1140 billion euros to boost growth in the euro area.

Welcomed on the markets, the announcement of this plan to buy back sovereign debt has already had a definite effect on the CAC 40 and the other major European indices on the rise this Thursday afternoon. Later than the others, this intervention seeks in particular to push investors towards riskier assets, likely to help support the economy of the euro zone. But the boss of the ECB has already warned the States of the Union: his plan will not work if European countries take the opportunity to slow the pace of structural reforms or go into debt more.
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by Remundo » 24/01/15, 20:25

yes, a good creeping devaluation ...

Buying debts that are impossible to repay with money that doesn't exist, you had to invent it, it's called Quantitative Easing combined with debt buy-back.

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by Did67 » 25/01/15, 16:35

Inflation has always been the easiest way to write off debt.

I am one of those who think that the debt accumulated by the different states will never be repaid anyway ...

So I think it was the path of inflation / money printing / devaluation that was taken ...

We will reimburse "really": 1 billion which were worth say 000 Airbus by 10 billion tickets which in a few years will only be worth 000 Airbus equivalent ... And voila.

And frankly, I'm not going to cry because the investors / speculators will have been fucked, sorry.

Missing more than the victory of Tsipras in Greece and, after the phenomenal "Je suis Charlie" across the world, Holland in Davos, in 10 days nothing will be the same! And will Merkel have to get into knitting?
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by Obamot » 25/01/15, 17:43

Yes but no, not exactly ...

This is the "if everything goes wrong" scenario, but we were already on the brink ... Here we are at the point of recovering the adjustment variables - the money-debt paradigm and systemic crisis moving forward. mal an - which in the end should have a "doping" effect

Let’s think, if the crisis continues (or it doesn’t continue, the economy is back on track but sluggish, employees must not be aware of it ...) well I mean that is settled, rather if consumption does not start again, then the unfortunate one thousand five hundred billion could plunge the euro zone into chaos! And become 5 billion to see if it was not ultimately the double that we would have to reinject.

While there, with simultaneously the decline in the barrel and the arrival of new money in the euro zone, cumulated at the fall of the euro against the dollars (which will allow exports to be facilitated everywhere in the world) the big bastringue of the economy should restart! And the one thousand five hundred billion that a distant memory by leverage ...

I always come back to the same pattern! It must be seen that these interactions have a temporal impact. If we count that the daily global volume of exchanges on the stock market is 8 billion dollars! 000% better on the economy will produce over a year the figure - for us astronomical - of 1 billion dollars in additional trade (just to give a scale). Outside the world GDP is not 29'200 billion, but 8'000 billion, but that is the REAL production of "wealth" which is also around 130% ... So 000'1 billion I am not sure that it will be known in the end if the scenario works, we are at scales of 1, ox% ... (i.e. 500 / 0'5 = peanut, but BIG media effect ...! A form of warning also to certain speculators, to tell them:
- "stop playing it, you're not overweight"...)

And there I think that some must have understood the message. It always works when you touch the wallet: in the name of pèze du fric and Saint-Bénéfice: bring ....! : Lol:
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by Ahmed » 25/01/15, 18:43

This monetary measure will only (if all goes as their promoters hope) only to postpone the deadline a little further.
This risks somewhat boosting the majors of the economy, but will have no influence on all of the companies whose parameters will be unchanged.

The debts will never be repaid since the economic necessities which are at their origin are always present. Only new debts will be able to settle the old ones, on their due date.

To speak of "crisis" constitutes an abuse of language, since this term applies to a transient state, it would be better to speak of "insoluble systemic contradictions", but it is much less glamorous!
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by Obamot » 26/01/15, 08:01

Episode II

The ultra-left in power, Greece would therefore not pay the bill! (300 billion alone or debt rescheduled over 50 years ... therefore which will be dissolved in the "economic background noise "of successive crises - oh sorry it escaped me Ahmed - who will follow all those we have known)

Finally, they do not have a majority in parliament, nothing will be obvious, and it will react (chat) all week in Europe, another game of barbichette begins ...! Germany has not said its last word ...
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by Obamot » 26/01/15, 09:05

UP ... They don't agree on the numbers ...

300 billion on France2 this morning, other sources claim a debt at 65 billion ...

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The ECB says "impossible" ... ( : Mrgreen: ) as usual...
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by Christophe » 26/01/15, 10:46

Obamot wrote:Episode II

The ultra-left in power, Greece would therefore not pay the bill! (300 billion alone or debt rescheduled over 50 years ... therefore which will be dissolved in the "economic background noise "of successive crises - oh sorry it escaped me Ahmed - who will follow all those we have known)

Finally, they do not have a majority in parliament, nothing will be obvious, and it will react (chat) all week in Europe, another game of barbichette begins ...! Germany has not said its last word ...


I was just going to talk about it ... the decision of the ECB and this "historic victory" in Greece: would there not be a kind of insider trading the?
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by Christophe » 26/01/15, 10:58

Obamot wrote:I always come back to the same pattern! It must be seen that these interactions have a temporal impact. If we count that the daily global volume of exchanges on the stock market is 8 billion dollars! 000% better on the economy will produce over a year the figure - for us astronomical - of 1 billion dollars in additional trade (just to give a scale). Excluding world GDP is not 29 billion, but 200 billion, but that is the REAL production of "wealth" which is also around 8% ...


Uh could you develop the calculation of 29 billion ... please? Thank you
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by Gaston » 26/01/15, 12:06

Christophe wrote:
Obamot wrote:I always come back to the same pattern! It must be seen that these interactions have a temporal impact. If we count that the daily global volume of exchanges on the stock market is 8 billion dollars! 000% better on the economy will produce over a year the figure - for us astronomical - of 1 billion dollars in additional trade (just to give a scale). Excluding world GDP is not 29 billion, but 200 billion, but that is the REAL production of "wealth" which is also around 8% ...


Uh could you develop the calculation of 29 billion ... please? Thank you
8000 * 1% * 365 days :?:
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