- Bloomberg’s Handy Guide To Why Falling Prices Are Horrible For You (ZeroHedge, Jan 22, 2015):
With almost perfect comedic timing, Bloomberg unleashed the mainstream media’s Draghi-confirming raison d’etre for QE… explainining why – shock horror – deflation is bad for you. No matter that the QE efforts of The Fed (and BoJ) entirely (totally and utterly) failed to spark any increase in inflation expectations, we must try try try again. However, despite the exuberant disgruntlement with deflation that Bloomberg offers, Portuguese economy minister Guindos had something ‘odd’ to say this morning: “European deflation is positive.” We are sure he will issue some clarifying statement soon enough walking back such a dangerous and anti-authority comment. Continue reading »
- What ECB QE Will Do For The World (In 1 Word & 1 Simple Chart) (ZeroHedge, Jan 22, 2015):
- *DRAGHI SAYS TODAY’S MEASURES WILL BE EFFECTIVE
- *DRAGHI SAYS TODAY’S MEASURES WILL BOLSTER INFLATION
- *DRAGHI CITES SIGNALING EFFECT ON INFLATION EXPECTATIONS
“Different this time?” or “Einsteinian Insanity”?
With The ECB set to announce a QE4EVA-esque bond-buying initiative within the next hour or two, we thought it worth looking at just what The Fed’s balance-sheet experiment did for inflation expectations (the key narrative that is driving Draghi’s decision) and economic growth (what every politician is demanding Draghi help with)…
The answer… Nothing!!
From “whatever it takes” to OMT to “discussing” bond purchases, with European interest rates at record (incomprehensible) lows (apart from Greece) and EURUSD at 11-year lows (down 25 handles in the last 8 months), Mario Draghi looks set to unleash interventionist ‘hell’ on the investing public in Europe with EUR50 billion (plus plus) of ECB QE per month for as long as it takes.
And then there’s this:
- *MERKEL SAYS DEBT CRISIS ‘MORE OR LESS UNDER CONTROL,’ NOT OVER
- *MERKEL SAYS ECB IS MAKING AN INDEPENDENT DECISION TODAY
QE has never ‘worked’ and never will, …
… unless you want to destroy the currency, the middle class & the poor, then it will work miracles.
The SNB already knew that the elitists will unleash QE and has left the floor.
QE is just a way, by now the only way, of kicking the can down the road, … until the entire financial system collapses.
- It’s Europe’s last throw of the dice but will the QE experiment work? (The Telegraph, Jan 21, 2015):
The European Central Bank could finally pull the trigger on quantitative easing to stop the deflation rot. But what are the options and how’s it all meant to work?
With the western world facing high terror alerts, the biggest meeting of top CEOs and world leaders comes at a delicate time. As Bloomberg’s Tom Gibson exclaims in this brief clip, “it feels like half the Swiss army is here,” but officials play down the security presence as ‘business as usual’. With a special no-fly-zone and snipers overhead, Davos is protected by 3,000 military personnel for these few days… no wonder the billionaires aren’t worried about leaving their private jets unlocked on the Davis runways.
Having proclaimed it is not Zimbabwe, Nigeria’s currency is starting to look a lot like a hyper-inflating mess. After devaluing to a 168 peg in November, the Naira has crashed to 200 / USD today – smashing above the upper peg band of 176 as it appears Nigeria is losing control. The collapse of Oil Producer currencies had abated for a week or two but the last 2 days have seen the Ruble and Naira tumble (even as The USDollar weakens modestly ahead of the ECB QE tomorrow).
Because nothing says ‘stability’ like a Central Bank in charge of things, the
smartestrichest men in the world have proclaimed in Davos this week that “we need a central bank of oil, like the central bank in financial world.” As long as they are not Swiss, of course. Oil has been volatile today amid these calls for stability after Saudi Aramco comments on cutting projects (supply) sent prices higher, and was then talked back by the CEO bringing prices lower. Oman – the largest non-OPEC Middle East oil producer – blasted that “we have created volatility,” noting it was having a “really difficult time,” and that’s “bad for business,” demanding OPEC slow production. But it was The IMF that sparked the greatest concerns as it warned oil producers to treat this oil price drop as permanent noting that they expect these economies to lose $300 billion. only to be contradicted by OPEC’s al-Badri who noted “oil prices will rebound back to normal soon.”
- Hungary Set to Initiate EU Alliance to Reject GM Crops (Sustainable Pulse, Jan 20, 2015):
Hungary will initiate a joint alliance of European Union member states rejecting the use of genetically modified organisms in farming with the aim to make the entire European Union free from GMO crops, Hungarian farm minister Sándor Fazekas said on the sidelines of the Global Forum for Food and Agriculture in Berlin at the weekend.
Sandor Fazekas said the countries committed to GMO-free farming must forge an alliance because “we would like to keep our food and our environment healthy and we are convinced that the agriculture of the EU and Hungary can remain competitive with conventional crop and livestock production”.
The Hungarian Farm Ministry said last week that Hungary’s interests were fulfilled when a vote passed in the European Parliament allowed individual member states to ban the cultivation of GM crops. “It is an especially important strategic interest for Hungary laid down in its constitution also to ensure that its agriculture is GMO-free,” he said. Continue reading »
The new GMO directive passed by Parliament opens the floodgates of GMO authorizations, without actually strengthening the power of the member states, and also assigns a monopoly of expertise to EFSA which is unacceptable, given the infiltration of lobbyists within the health agency.
CRIIGEN press release: Rough translation into English by Claire Robinson
This Tuesday, 13 January 2015, the European Parliament adopted a new Directive that fundamentally changes the game for marketing and cultivation of GMOs in Europe at the expense of legal, health and environmental security. This new European text on “renationalisation of GMO authorization procedures” was meant to be more stringent and aimed, among other things, to “facilitate” national bans on GMO crops. The biotech lobby, with the support of some pro-GMO member states in the European Council (UK, Netherlands, Spain …), still managed to impose its will to introduce more GMOs in Europe. The new directive now gives more power to businesses, working in partnership with the member states with which the authorizations must be negotiated, while facilitating the process of marketing and cultivation of new GMOs. Continue reading »
- Russia Slams US/NATO Attempts To Draw It Into Military Conflict With Ukraine (ZeroHedge, Jan 21, 2015):
NATO’s Jens Stoltenberg unleashed the latest tirade against Russia this morning proclaiming – though offering no proof – that there are Russian forces and heavy equipment in Ukraine and a high number of Russian forces on the border which “doesn’t contribute to a peaceful solution.” Apparently pre-empting this outburst, Pravda reports Anatoly Tsyganok, director of the Military Forecasting Centre, exclaims, “Ukraine reiterates that Russia is in the war, but it’s not true,” adding that in fact “the USA and the NATO have artificial satellites continuously circulating above this territory and control the situation,” concluding with a jab at The US & NATO that “Russia has never participated in the military conflict. And no attempt to involve Russia in the conflict will be crowned with success.”
Putin offered a peace plan but it was rejected…As Reuters reports,
Ukraine’s President Petro Poroshenko rejected a peace plan proposed to him last week by his Russian counterpart Vladimir Putin, Putin’s spokesman Dmitry Peskov said on Sunday evening, according to Russian media. Continue reading »
- S&P Surges As ECB’s QE Leaked: Board Proposes €50 Billion In Bond Monetization Per Month (ZeroHedge, Jan 21, 2015):
And so with less than 24 hours to go, the ECB has decided to leak its deliberations not only to Merkel and Hollande, but Dow Jones. To wit:
DJ: ECB EXEC BOARD’S QE PROPOSAL CALLS FOR ROUGHLY EUR50B IN BOND BUYS A MONTH – SOURCES
ECB SAID TO PROPOSE QE OF 50 BILLION EUROS A MONTH THROUGH 2016
More as we see it, but if indeed this will be a program without risk-mutualization and conditional and limited burden-sharing, where the hope was that Draghi would “shock and awe” the world with the size of the bond purchasing program instead, €600 billion per year looks decidedly on the low side of any “surprise” announcement where the whisper number was for €1 trillion per year, and if indeed this is the final formulation may result in a substantial disappointment for stocks after the initial kneejerk reaction.
Yes, but look who’s talking:
Bundesbank President Axel Weber has dished out €338 billion!!!
- EU has squandered last chance to make euro workable, warns Ex-Bundesbank chief (Telegraph, Jan 21, 2015):
Axel Weber says it is “hard to say” whether Europe would be in better shape today if the euro had never been launched, a tactful evasion understood as nostalgia for the stability of the D-Mark
The former head of the German Bundesbank has warned that the European Central Bank (ECB) will not succeed in raising inflation for years to come and is almost powerless to revive the fortunes of the eurozone on its own.
Axel Weber, now chairman of UBS and widely-regarded as Europe’s most influential private banker, said Europe’s leaders had squandered the chance to rebuild the eurozone’s foundations when the going was good and markets were calm. Continue reading »
- Europe’s Scariest Chart (ZeroHedge, Jan 18, 2015):
One week before the all-important Greek parliamentary elections and, as KeepTalkingGreece reports, left-wing SYRIZA leads in all polls published on Sunday newspapers with difference rate to Nea Dimokratia being 3.1% – 5%.
To Potami appears to have secured the third position, while Golden Dawn is losing support. To Kinima, the party of former prime minister George Papandreou is flat at 2.7% and most likely will not manage to pass the 3% threshold and enter the Parliament.
According to calculations, SYRIZA would get 144 seats in the Parliament. That is 7 seats less than the 151 needed to form a majority government. Continue reading »
From the article:
“And we are also finally glad that with every passing day more and more banks, pundits and “straight to CNBC” experts wearing business suits realize what we said 6 years ago, namely that QE will never work as one can’t fix a failed financial system due to record debt problem with more debt and even more props to support an even more failed financial system. And that QE has, is, and will continue failing… for everyone but the 1% of course, who with every passing day continue to tempt not only fate but the guillotines as well. Reference? See the French Revolution, because it is never different this time.”
- The ECB Will Fail Given The “History Lessons Of US And Japan”, Warns Deutsche Bank (ZeroHedge, Jan 18, 2015):
Recall that the stated purpose behind the reason why Mario Draghi’s ECB is about to launch a European government debt monetization program ranging between EUR500 and 1000 billion is to halt deflation, spark credit creation and rekindle inflation. Alas, if that is indeed the case, then as Deutsche Bank said has already determined apriori, it will be a failure. Here’s why from the biggest German bank.
First, a broad strokes preview of what the world’s most confused Central bank will do this week: Continue reading »
- Charlie Hebdo fallout: Belgium deploys troops, UK raises terror alert to ‘severe’ (RT, Jan 17, 2015):
Europe is in a state of high alert after anti-terror raids netted over two dozen arrests. UK police have raised threat level to ‘severe’ fearing attacks similar to the one narrowly averted in Belgium, while Brussels has deployed troops to guard key sites.
- Now We Know The Plan: More Surveillance and a Patriot Act For Europe (SHFTplan, Jan 15, 2015):
The irony is almost worse than 9/11.
Then, President Bush responded by stating, with bravado, that they attacked us because they hate our freedoms.
This time, the attack against the publication of satirical Mohammed cartoon, was not only an act of terrorism, but an attack on the spirit of free speech.
And the government response this time? After staging a photo op of world leaders, various heads of state have proposed new waves of surveillance and repressive attempts to ban encryption and violate the freedom of speech in communication devices through new spy policies and laws.
On Sunday, as more than 3 million people flooded the streets of Paris in support of the free speech principles that Charlie Hebdo embodied, a group of 12 European ministers issued a joint statement calling for internet service providers to more swiftly report and remove online material “that aims to incite hatred and terror.”
Establishing a framework to enhance police work and intelligence sharing concerning the actions of alleged terrorists and extremists, the joint statement from 12 European ministers and U.S. Attorney General Eric Holder declares the intent to: “counter violent extremism” and “fight against radicalization, notably on the Internet,” in part through the “swift reporting [and removal] of material that aims to incite hatred and terror.” Meanwhile, it aims to beef European border control, “step up the detection and screening of travel movements” and enhance law enforcement, particularly in “working to reduce the supply of illegal firearms throughout Europe.” Continue reading »
- The SNB’s Wake-Up Call: Keynesian Central Banking Is Destroying Money And Markets (David Stockman’s Contra Corner, Jan 17, 2015):
It seems everyone was short the franc (CHF) as a matter of taking monetarism at face value. In other words, it amounted to believing the central party line about the economy and normalcy despite the fact that markets have been increasingly pessimistic about it all and actively and aggressively betting against it. Goldman Sachs is just one of many: Continue reading »
- The Truth Behind The ‘Cherlie Hebdo’ Solidarity Photo-Op (ZeroHedge, Jan 17, 2015):
Once again the mainstream media peddled the spoon-fed propaganda that world leaders “led the march” to honor the victims of the Paris shootings last week. Glorious photo-ops of Merkel, Hollande, Poroshenko, David Cameron (oh, and not Barack Obama) were smeared across front pages hailing the “unity in outrage.” However, as appears to be the case in so many ‘events’ in the new normal managed thinking in which we live, The Independent reports, French TV has exposed the reality of the ‘photo-op’ seen-around-the-world: the ‘dignitaries’ were not in fact “at” the Paris rallies but had the photo taken on an empty guarded side street… Continue reading »
- Russia’s Modest Proposal To Greece: “Exit Europe And We Will Lift The Food Import Ban” (ZeroHedge, Jan 17, 2015):
It has not been a good week for Greece: first we learned that its treasury has run dry as Greece have stop paying all taxes ahead of the elections (and likely after), making further reforms virtually impossible as the government simply does not have the cash to promote economic changes; then we found out that first two then all four of the largest Greek banks have submitted Emergency Liquidity Assistance requests to the ECB to preserve liquidity in light of a deposit run that is picking up pace. And yesterday, adding insult to injury, Spiegel leaked that while seeking preapproval from Merkel for his QE program to be announced next week, Draghi told the Germans that Greek bonds won’t be among the securities monetized by the ECB. Continue reading »
A suspect in a hostage taking situation raises his arms in the air as he is detained by members of special French RAID forces outside the post offices in Colombes outside Paris, January 16, 2015.(Reuters / Philippe Wojazer)
- Gunman armed with Kalashnikov takes hostages at post office near Paris (RT, Jan 16, 2015):
Several people were taken hostage by an unknown gunman at a post office in Colombes, a northwest suburb of Paris, French media reported. After negotiations, the assailant handed himself over to police.
The gunman was armed with a Kalashnikov rifle, a gun and numerous grenades, French RTL radio reports. From two to five people were taken hostage, say police sources. The incident took place at about 12:00 GMT.
After negotiations with the assailant began, reports emerged that an unknown number of hostages was released and the gunman eventually surrendered to police. Continue reading »
- EU Parliament Votes ‘Yes’ on GMO Opt-Out for Member States (Sustainable Pulse, Jan 13, 2015):
New legislation to allow EU member states to restrict or ban the cultivation of crops containing genetically modified organisms (GMOs) on their own territory, even if this is allowed at EU level, was passed by MEPs on Tuesday. The legislation, informally agreed by Parliament and Council in December, was originally tabled in 2010 but was then deadlocked for four years due to disagreement between pro- and anti-GMO member states.
“This agreement will ensure more flexibility for member states who wish to restrict the cultivation of the GMOs in their territory. It will, moreover, signpost a debate which is far from over between pro- and anti-GMO positions” said Frédérique Ries (ALDE, BE), who is steering the legislation through Parliament. Continue reading »