Not much to comment :-D
You see what I see. ECB QE is not just useless in terms of no effect at all to real economy, but it is clearly not even weakening the Euro! In fact Euro is a lot stronger against most of major crosses, so Mr. Draghi and his friends must have some headache now. Even their belowed asset bubble in European equities is bursting! All gains earlier this year is given back.
So after more than half year of printing what have they acheived:
- No Increasing relative competitiveness through forced devaluation effect (weaker FX rate)
- No credit boom. No increasing CPI expectations. No real economy effect at all. No increasing velocity of money despite increasing monetary base (money is stuck in the financial system, not reacing real economy)
- No long term wealth effect through increasing asset inflation (equity bubble).
- But yes, there are certain Pricing and risk distorsions
- Yes, there is financial supression and robbing out savers who invest in fixed income (bond, deposit) based. Forcing more irrational long term risk taking and leverage!
- .... (feel free to add your comments)
What's next guys? Print more? Or just keep quiet it might have failed right at the very beginning?
They would better stop now, or channel money directly to people, instead of shadow bailing out your own, almost insolvent banking system.
It would be so simple! Just fckn send or transfer 500-1000 EUR to ALL Eurozone citizens' directly, with restriction that they must SPEND it on goods and services, not save or invest it. So do you really want to see inflation? Do this! .... ah, of course Rates and yields would immediately spike up... but hey guys, the two walk together in normal economics, or is it really what they want to avoid, or at least postpone? ;-)
It is clear. They wanna rob savers, while they exactly know and see it will not cause inflation gradually. However at one point what will cause massive inflation? The loss of faith in these Central Wankers and the always and ever printed fiat ccys. It will be very easy to spot. Just go and read some about the 1945-46 Hungarian hyper inflation.
Every time I think of this, I come to the conclusion that we must at least focus more on Gold, even if not yet go all in long, since Price action is still not bullish there. But it is time to hold some minimum amount of gold.
Anyway, this is just a theory, a spot observation. Maybe ECB will increase printing to 1000 bn EUR/ month to collapse EUR, and Gold will still not go up. So what you have to do is: Don't think too much, just follow your simple rules, and trade charts, trade price action, trade trends!