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

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.

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...

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.

Isn't QE just printing money out of thin air? How much longer will this Ponzi run?

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.

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.

a reply to: HUMBLEONE

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

Looks like the buzzards are circling the busted out EU central banks.



Big debt crisis on the way.

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.

What is Draghi still doing in the ECB aside from bailing out Italy's bankrupt policies and giving cash to EU intelligence services whose only purpose it to orchestrate fake NATO missions to bring migrants into EUrope ?

originally posted by: Flanker86
What is Draghi still doing in the ECB aside from bailing out Italy's bankrupt policies and giving cash to EU intelligence services whose only purpose it to orchestrate fake NATO missions to bring migrants into EUrope ?

gladio et al requires infinite resources for the daisy-chain. run a deficit to gain a financial increase (only applies to the public purse) and your great great grand-daughters embryo won't be aware of the principal only the servicing of it.
f

I've never professed to have anything more than a rudimentary understanding of economics and finance but, correct me if I'm wrong, won't the long term effect of this be rising inflation?

Didn't we try this in the UK at some point, and if memory serves correctly wasn't it criticised as just another mechanism by which the rich get richer and the poor get poorer?

a reply to: Freeborn

QE in the words of max keiser 'a dog eating it's own vomit'.

you are correct freeborn g brown then pm suddenly found his bollocks on the table next to a large lump hammer. unconfirmed jungle-drums stated 'give us da money or we crash da system'.

it did indeed save the banks however the longer term implications are sustained public debt and stressed personal debt.

the European system will quite easily swallow that trillion and the servicing will be easy payments gently increased in accordance with a sympathetic ear whilst the bond issuing machinery requires more coolant than fuku.
f

a reply to: fakedirt

Now this might sound daft and I'm almost certain its been suggested before but surely if the intention is to stimulate the economy, and not just to help banks and bankers out, then wouldn't it be more beneficial if every household and / or taxpayer were given a sum of money along with the proviso that the money be spent within a certain timeframe and on certain predefined goods?

Like I said, I have a limited understanding of economics and finance!

a reply to: Freeborn

and yes inflation will eventually rise and indeed the rich got richer (uk offshoring of profits is a vibrant, healthy stealth economy for the top financial boys in certain commonwealth territories). the debt however lands at out feet. think bhs, carillion foe examples.

financial weapons of mass destruction that even the fca shudder near the stench of.
f

originally posted by: Freeborn
a reply to: fakedirt

Now this might sound daft and I'm almost certain its been suggested before but surely if the intention is to stimulate the economy, and not just to help banks and bankers out, then wouldn't it be more beneficial if every household and / or taxpayer were given a sum of money along with the proviso that the money be spent within a certain timeframe and on certain predefined goods?

Like I said, I have a limited understanding of economics and finance!

I fully agree. this liquidity exercise didn't work out the way it was presented. the banks held the cash from the boe at near zero interest rates and upped their charges and interest rates till the pay-day companies gouged the masses. the private companies under stress due to greed backfiring simply borrowed at the lowest charge, bought up all publicly offered shares at the lowest price and consolidated their positions. write-offs, r and d, charitable contributions etc lessened their tax burdens considerably.

austerity is the living proof things went south with regards to stimulating the economy with shouts of green shoots all around lol. green shoots for the tossers avoiding the register of members interests in the commons and the other place to name but two organs showing signs of a festering tumour.
f

The erogation of liquidity towards Italy should be ending immediately. Possibly in th ecoming days as the Italian intelligence is constantly using those funds for destructive activity against the EU and for further importation of illegal migrants.