Kumowizard
Long

EURO and the "super efficient" ECB QE

FX:EURUSD   Euro Fx/U.S. Dollar
491 3 15
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!
So technically EUR up, USD down, EUR/USD regain, EUR/Sek up, USD/Sek down. So far these trends do fit the picture
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well actually since the start of last summer QE Euro did loose its value ALOT

and he is not watching 100-pip moves=) so not all is that bad in Mr Drahgi's actions..
+1 Reply
There's a big talk coming between the FED and bankers etc this weekend with talks on the table as to why no inflation has kicked in, they really can't understand it.. i can of course.. Bankers have stolen all they can with the 2008 property bubble leaving the middle-class in many countries broke and homeless. At the same time they've been writing fascist laws pushing outsourcing and manufactures to China where regulations are some what loser.
Trying to start a business today is like trying to boil a kettle with snow.. many of the regulations are only in place to protect and bailout already failed corps deemed by Gov't as "To big to fail"
All this QE and bailouts is put onto the working class with tax.. democracy is meant to be there for the people, not just private corps. So my famous words to Gov't... hahahhaha idiots !!
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