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European Central Bank president Draghi announces €1.1 trillion quantitative easing programme

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posted on Jan, 23 2015 @ 06:36 AM
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www.telegraph.co.uk...
www.bloomberg.com...


"The combined monthly purchases of public and private sector securities will amount to €60bn euros,” said Mr Draghi at a press conference following a meeting of the ECB’s governing council.

“They are intended to be carried out until end-September 2016 and will in any case be conducted until we see a sustained adjustment in the path of inflation," he added, meaning the package will amount to at least €1.1 trillion.

Mr Draghi’s package of asset purchases, including bonds issued by national governments and EU institutions such as the European Commission, is intended to boost the eurozone’s flagging economy and to ward off the spectre of deflation.



The ECB president shrugged off determined opposition led by German officials with a pledge to buy 60 billion euros every month through September next year in a once-and-for-all push to put more cash into circulation and revive inflation. To assuage critics, the region’s 19 national central banks will make 80 percent of the purchases and take on any risk they carry.


It is hard to predict the outcome of this move. So far, the reaction in the local media has been rather positive. I personally see it as quite positive decision and hopefully it will help the economy, as currently things are not bad, but too stagnant compared to US for example.




edit on 23-1-2015 by Cabin because: (no reason given)




posted on Jan, 23 2015 @ 06:40 AM
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So they help banks again and as before they (the banks) didn't lend out any money to people or business.
Also the Euro gets lets value and things will get more expensive (more inflation).
They do this since they are afraid of deflation but deflation is good for us (things get cheaper!).

Now Iceland gave the middle finger to the banks, raised interest rates allot and things recovered allot over there.

You see the US or the EU can't raise interest rates since they can't pay for their debts then!

Just screw the people with more taxes and more inflation...




edit on 23-1-2015 by Plugin because: (no reason given)



posted on Jan, 23 2015 @ 08:09 AM
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a reply to: Cabin

This is illegal (in the EU it is against the law to fund government spending by printing euros). Also it is clearly against the German constitution.

You can see why they did this after watching with envy as QE made the rich richer and the poor poorer in the UK and US. However, I'm not sure the Germans will stand for it.

It's good in a way that the EU is collapsing into lawlessness since this should hasten its break-up. Germany and Greece seem to be in a race to get out of the euro zone.



posted on Jan, 23 2015 @ 11:14 AM
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Isn't QE just printing money out of thin air? How much longer will this Ponzi run?



posted on Jan, 23 2015 @ 11:31 AM
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a reply to: HUMBLEONE

Your right it is. It's going to last as long as the Germans allow it.

That's who is footing the bill. Well, them and the UK.



posted on Jan, 23 2015 @ 01:38 PM
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originally posted by: cenpuppie
a reply to: HUMBLEONE

Your right it is. It's going to last as long as the Germans allow it.

That's who is footing the bill. Well, them and the UK.


Thank you for you reply. No worries. Let the dog and pony show amuse you.



posted on Jan, 23 2015 @ 01:59 PM
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a reply to: HUMBLEONE

Exactly, more money being conjured out of thin air. It will cause the Euro to drop further..



posted on Jan, 23 2015 @ 02:14 PM
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Looks like the buzzards are circling the busted out EU central banks.



Big debt crisis on the way.



posted on Jan, 23 2015 @ 02:28 PM
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originally posted by: supermouse
a reply to: Cabin

This is illegal (in the EU it is against the law to fund government spending by printing euros). Also it is clearly against the German constitution.

You can see why they did this after watching with envy as QE made the rich richer and the poor poorer in the UK and US. However, I'm not sure the Germans will stand for it.

It's good in a way that the EU is collapsing into lawlessness since this should hasten its break-up. Germany and Greece seem to be in a race to get out of the euro zone.


I thought I read somewhere that this was the reason they've not done QE before. I'm sure it was said that it's illegal for the ECB to do so because each Eurozone country has their own central bank. What's changed? Why now suddenly fire up the printing presses?



Printing money to finance Government debts is illegal under European Union treaties. But the ECB says QE is a purely monetary tool, in line with its mandate to ensure stable prices.


The Independent

I wish someone would give me a bit of QE and add a few zeros to my bank account. The article gives the impression that because they don't literally print money but only use a computer to create it, it's really ok.



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