Posted on 12/05/2014 6:07:09 PM PST by Lorianne
The European Central Bank has dashed hopes for quantitative easing this year and acknowledged for the first time that the institutions elite board is split on plans for a 1 trillion liquidity blitz.
Equity markets fell across southern Europe,with Italys MIB off 2.77pc, led by sharp falls in bank stocks. Spains IBEX dropped 2.35pc.
The euro surged by more than 1pc to $1.2455 against the dollar in early trading as speculators rushed to cover short positions. Expectations for immediate stimulus had been riding high after the ECBs president, Mario Draghi, pledged action as fast as possible last month.
The bank slashed its forecasts for economic growth to 1pc next year, and admitted that inflation will remain stuck at just 0.7pc, a combination that traps large parts of southern Europe in deflationary slump and corrodes debt dynamics. BNP Paribas said eurozone inflation is likely to average 0pc in 2015, after turning negative this month.
The credibility of the ECB lies in tatters. Its now patently clear that Draghi lacks the crucial German support for launching full-blown QE, said sovereign bond strategist Nicolas Spiro.
(Excerpt) Read more at telegraph.co.uk ...
Amazing people crying in their spilt beer about deflation!
Only yesterday these same people were b*tching life was getting too expensive.
You’d think they would show gratitude.
deflation?
not sure. But interest rates the bank pays us have sure deflated!
i called my bank to ask about something and they recommended i transfer some $ from checking into savings, “because it pays higher interest for you”
Later, I checked their rates.
The checking appears to earn 0.08% interest.
The savings appears to earn 0.10%. Or maybe it was vice-versa.
There’s sure no incentive to save or put your money into a bank at all, for that matter.
It’s wise to keep hidden, well-distributed supplies of cash on hand.
As long as you’re burying cash all over your yard, please ........(1), co rider adding lots and lots of silver and gold coins (in case the fake currency craps out completely on us), and the. (2) send me your address and a map by private email. Thanks. Smile smile smile.
Well-distributed.
It is NOT about SHTF.
It is simply about landing on your feet when life throws you some lemons.
All assets can be distributed, i.e., in different locations.
If one wants to stop getting ripped by the elites one first has to “catch up” and understand how they operate and do the same things they do where appropriate.
It’s the basic concept of: don’t fight a gun battle with a knife.
This could get interesting.
ok, got it! makes good sense...
smile
smile
just keep the neighbors’ dogs out of your yard is all
smile
smile
There is no such thing as an irreversible deflation trap in a free market. Only government can cause this. The solution is less, much, much less government. Europe cannot do that. They’re past the point of no return.
Only war or violent revolution will fix this. The EU is their Sun King.
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