Cryptocurrencies

Is the ECB getting ready to rain 650 billion euros for Christmas? – Cryptocurrencies

Hygienic hysteria returns to center stage. While the media are cheating on it, the European Central Bank (ECB) is preparing to drown us under a second wave of billions. It is rumored that Frankfurt will reopen its monetary valves before Christmas. A godsend for Bitcoin.


600 billion zizanie

Reuters made inquiries with 8 informants having their entries at the European Central Bank (ECB). The world news agency reports that the tension is growing. Christine Lagarde, who had succeeded in recreating the lost consensus under the aegis of Mario draghi, would be too conciliatory with the governors wishing soften more monetary policy.

Fringe ” hawkish Of the Governing Council complains that the good performance of the economy this summer is not being emphasized more. Conversely, the governors “ Dovish »Grow Christine Lagarde to adopt more haughty language highlighting the risks hanging over growth and the appreciation of the euro against the dollar.

Both factions have views diametrically opposed. The falcons would like the ECB to start resell the debts it holds in its balance sheet. On the contrary, the doves wish to increase the “Pandemic Emergency Purchase Program” (PEPP). In short, from “Quantitative Easing” (QE) but special Covid edition

Inside the ECB

Mario draghi had grown accustomed to making meaningful public statements even before speaking to the Board of Governors. An attitude that had warmed the spirits, especially that of Jens Weidmann, the president of the Bundesbank.

We thought the hatchet was buried thanks to the renowned tact of Christine Lagarde, but discord has finally made a comeback. In question, the governor Panetta which took its ease last week by declaring that the ECB should riskdo too much rather than not enough “.

“It’s like Mario is back” the anonymous Reuters source said …

Mario Draghi whatever it takes
The front page on Mario Draghi after his famous “wathever it takes” in 2012

As regards the permanent staff of the ECB, the latter also seems to be in favor of carrying out a very “accommodating” monetary policy by recommending passing the Special Covid QE of 1350 billion to 2000 billion! Christine Lagarde was not receptive to this suggestion, but it is rumored that the majority of governors would welcome announcements to this effect on December 10.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

In the hood of the Central Bank

Banks in the Euro Zone can already borrow at a rate of up to -1% (the famous TLTRO). Put another way, the ECB pays private banks to borrow at its counter. But Reuters sources suggest that the ECB will not move on rates this year.

By the way, once this money is borrowed, the banks are exposed to a negative rate of -0.50% if they keep it in their “coffers” without lending it to the real economy (SMEs).

So there remains mainly the QE (buyout of sovereign debt) in an attempt to restart the debt machine. The mechanism being that after buying the debts from the private banks, the latter end up with a lot of cash which will be taxed at -0.50%. What forces them to lend, States and multinationals in particular, at any rate, as long as it is above -0.50%. Many countries like Germany, France, Austria and Holland are now getting paid to go into debt. For example, the French 10-year rate is currently -0.25%.

Phantom epidemic and counterfeit money

To summarize, the ECB is using the Covid crisis as a pretext to distribute billions of euros while being forgotten behind the antiseptic media fog. Neither seen nor known, we are witnessing the massive bailout of banks. So many billions that will end up fueling the debt ponzi scheme and sacrosanct growth.

Perverse consequence (sought?….) Of this system: multinationals jostle at the gate and use all this free manna to buy back their own shares. This generates an artificial rise in their stock market prices and exacerbates inequalities.

Another consequence: the currency is devalued. In other words, savings and our purchasing power are eroded by inflation. Speaking of which, don’t miss our big piece coming out this week on the massive manipulation of inflation numbers.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Gradually, around the world, authorities are fueling fear and panic with a phantom epidemic having nothing to do with that of March in terms of lethality. It seems written in advance that the ECB will jump at the opportunity of a re-containment to imprint our impoverishment. Protect before it’s too late. Save in the form of Bitcoin!

Tags

Related Articles

Back to top button
Close
Close