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ECB dumps 3/4 TRILLION on money markets

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General interest discussions, not necessarily related to depletion.
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Re: ECB dumps 1/2 TRILLION on money markets

Unread postby Tuike » Wed 19 Dec 2007, 10:40:44

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Re: ECB dumps 1/2 TRILLION on money markets

Unread postby highlander » Wed 19 Dec 2007, 11:42:15

I heard a report this AM that said the european central bank is raising interest rates due to inflationary pressures. Who would have thought..........
This is where everybody puts profound words written by another...or not so profound words written by themselves
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Re: ECB dumps 1/2 TRILLION on money markets

Unread postby greenworm » Wed 19 Dec 2007, 23:49:05

$this->bbcode_second_pass_quote('', 'I')nternational banking clique if you will.


For all you home gamers playing along, break bank (ben bernanke) is ROBbing the GATES, that Bill built. I think this naming convention thing is really fabulous, you can even pick out the next president using it. I don't think it's the fact that they are so smart, I think it is the fact that the sheep are too medicated and stupid. :lol:
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Re: ECB dumps 1/2 TRILLION on money markets

Unread postby SchroedingersCat » Thu 20 Dec 2007, 00:05:16

A few (hundred) billion here, a few (hundred) billion there -- pretty soon you're talking about real money!
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Re: ECB dumps 1/2 TRILLION on money markets

Unread postby roccman » Thu 20 Dec 2007, 13:23:57

Dumped another 200 Billion today!!!
"There must be a bogeyman; there always is, and it cannot be something as esoteric as "resource depletion." You can't go to war with that." Emersonbiggins
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Re: ECB dumps 1/2 TRILLION on money markets

Unread postby gnm » Thu 20 Dec 2007, 14:53:38

$this->bbcode_second_pass_quote('roccman', 'D')umped another 200 Billion today!!!


Rocc, do you have a link for that? So we are talking 700B now?! If so holy crap!

8O

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Re: ECB dumps 1/2 TRILLION on money markets

Unread postby JPL » Thu 20 Dec 2007, 19:38:43

$this->bbcode_second_pass_quote('gnm', '')$this->bbcode_second_pass_quote('roccman', 'D')umped another 200 Billion today!!!


Rocc, do you have a link for that? So we are talking 700B now?! If so holy crap!

8O

-G


I just can't believe that the Eurozone decided to f**c it's own ass in such a stupid fashion. 10 years of careful fiscal policy down the drain. And for what? So we can join the Yanks in their downward spiral?

This is madness!!!

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Re: ECB dumps 1/2 TRILLION on money markets

Unread postby MacG » Thu 20 Dec 2007, 19:48:19

$this->bbcode_second_pass_quote('JPL', ' ')<snip>

This is madness!!!

JP


Maybe, but I strongly suspect that the alternative is worse. At least in the short term. People not being able to make payments at all would mean severe chaos, and bankers might be eaten alive by crazy mobs.
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Re: ECB dumps 1/2 TRILLION on money markets

Unread postby gnm » Thu 20 Dec 2007, 20:02:51

$this->bbcode_second_pass_quote('MacG', 'M')aybe, but I strongly suspect that the alternative is worse. At least in the short term. People not being able to make payments at all would mean severe chaos, and bankers might be eaten alive by crazy mobs.


Bankers and lawyers killed!? Oh the humanity!

:evil:

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Re: ECB dumps 1/2 TRILLION on money markets

Unread postby JPL » Thu 20 Dec 2007, 20:40:03

$this->bbcode_second_pass_quote('MacG', '')$this->bbcode_second_pass_quote('JPL', ' ')<snip>

This is madness!!!

JP


Maybe, but I strongly suspect that the alternative is worse. At least in the short term. People not being able to make payments at all would mean severe chaos, and bankers might be eaten alive by crazy mobs.


I disagree,

The Eurozone finances are not unstable - far from it. The ECB has to date been very tight about issuing new money and also successfully maintained a low interest-rate policy - this has enabled good economic growth across the Eurozone for many years, but without the credit bubble that now threatens the Anglo-American economies.

& now it's been thrown away - for what? There is enough money on the line here here to put a European 'Man on the Moon'. Or to build 10 Channel Tunnels.

To me it doesn't make sense. They have just put the world's largest economic region onto the skids for no reason I can see other than propping up 'The Fed'.

Pleuggh...

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Re: ECB dumps 1/2 TRILLION on money markets

Unread postby FoxV » Fri 21 Dec 2007, 18:23:46

$this->bbcode_second_pass_quote('Eli', 'I')t will become inflationary only if it comes out the other side, which in my opinion it won't.

it can also become inflationary by a collapsing currency.

when foreigners start looking at their small pile of Euro's and compare it to the ever growing mountain of Euro's filling up the MBS hole. They'll start thinking that perhaps its not worth keeping any more (so much for OPEC wanting to switch to Euros)

ultimately if they continually print money the only outcome is inflation.

Either:
A) People accept further credit and the money comes out the other side as loans spent.
B) People refuse the credit, the Euro zone tanks because the modern economy cannot function without expanding credit and the Euro drops in value.

At the end of the day, if you create money, you cause inflation. The only reason why the US is getting away with it is that foreigners are sucking down all the extra dollars (mostly because of hegemony). That will end soon, and when it does, 36 years of exported inflation is going to very quickly be imported.

What I believe we are witnessing now is the End Game of the Modern global financial system. Never in history has the entire world been based on fiat currency, and we're all about to learn first hand why.
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Re: ECB dumps 1/2 TRILLION on money markets

Unread postby mmasters » Fri 21 Dec 2007, 19:15:38

$this->bbcode_second_pass_quote('FoxV', 'W')hat I believe we are witnessing now is the End Game of the Modern global financial system. Never in history has the entire world been based on fiat currency, and we're all about to learn first hand why.

Yeah, the whole thing will probably tank on the heels of some catastrophe.
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Re: ECB dumps 3/4 TRILLION on money markets

Unread postby DantesPeak » Sat 22 Dec 2007, 00:05:28

I agree with FoxV that money creation is basically always inflationary. While a falling economy will have deflationary business effects, they can be offset most of the time by new inflationary money issues.

It's possible that deflation could occur in the US if the electrical grid, for example, breaks down. Zimbabwe has hyperinflation in the dark, so even then, deflation is not guaranteed. We are not quite there yet, so I don't see deflation as very likely any time in the next three years. Most likely, inflation will continue to accelerate in the US until there is some type of crisis on the level of the "banking holiday" in 1932.


The ECB actually conducted reverse repo operation today removing some of the extra new money until December 27. Meanwhile special new swap deals continue, helping support the dollar at year end. (Euros are sold to borrow at the swap in dollars).
It's already over, now it's just a matter of adjusting.
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