There is hope: Euro Quantitative Easing

AnonyMint

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Quote from: thaaanos on April 09, 2014, 09:05:57 AM

Quote from: AnonyMint on April 09, 2014, 08:18:07 AM

The ECB is prevented from buying sovereign debt, and the German central bank isn't going to allow them to violate that law.

It's about re-capitalizing the German Banks. They still have huge hidden 2008 holes in their subsidiary smaller bank budgets.

Unless the capital moves through the economy as money (i.e. money velocity V in the M x V ≈ GDP), then it is still deflationary.

Won't this just sit on balance sheets or head over to the USA to speculate on the dollar and NYSE.

thaaanos

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Quote from: AnonyMint on April 09, 2014, 08:18:07 AM

The ECB is prevented from buying sovereign debt, and the German central bank isn't going to allow them to violate that law.

It's about re-capitalizing the German Banks. They still have huge hidden 2008 holes in their subsidiary smaller bank budgets.

AnonyMint

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The ECB is prevented from buying sovereign debt, and the German central bank isn't going to allow them to violate that law.

This is maybe about buying corporate debt (bonds). But the corporations have no incentive to invest this money in Europe because no return is possible there, so the money will very likely end up in the dollar and NYSE.

Strong resurgent dollar means gold down and probably no net benefit to Bitcoin (although I do expect Bitcoin to rise again eventually just not as fast and "to the moon" as prior expectations).

I explained those assumptions in the following posts:

https://bitcointalksearch.org/topic/m.6102899
https://bitcointalksearch.org/topic/m.6108434
https://bitcointalksearch.org/topic/m.6118983

EasySam

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It is not ray of sunshine. Recently everyone is just overreacting to everything. It will stabilize after awhile.

Ibian

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Quote from: Biontic on April 07, 2014, 05:52:35 AM

For those unsure about what this 'Quantitative easing' is all about - its wonderfully explained here.
https://www.youtube.com/watch?v=PTUY16CkS-k

Sorry but anything with those awful synthetic voices does not fall under "wonderful".

aminorex

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Sine secretum non libertas

Quote from: pening on April 07, 2014, 06:15:35 PM

To the OP, if Bitcoin relies on poor performance of other currencies, its in a poor state.

However, that fact that BTC is a hedge against over-exposure to national fiat does not in any way reflect negatively upon BTC.

pening

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Quote from: Biontic on April 07, 2014, 05:52:35 AM

For those unsure about what this 'Quantitative easing' is all about - its wonderfully explained here.
https://www.youtube.com/watch?v=PTUY16CkS-k

Amusing until it starting listing out gas and stock market prices increasing in the same context, which shows the author just has no idea.

To the OP, if Bitcoin relies on poor performance of other currencies, its in a poor state.

thaaanos

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As long as they never stop printing money Tongue

If bitcoin has 8 decimal places why shouldn't a 1.000.000 $ bill circulate?

miketonic

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Everyone is printing money.. How long people will trust this system? Huh

thaaanos

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Quote from: painlord2k on April 07, 2014, 01:47:23 PM

Quote from: thaaanos on April 07, 2014, 08:38:37 AM

too late if you ask me... The trust in the Eurozone is already broken, and Nazi parties rise across Europe.

They rise as opposed to what?
International Socialist in the government and bureaucracies and national socialists in the street.
It is not too late to cause hyperinflation and allow the national socialists to get the government and allow the bureaucrats change shirt from red/pink to black/brown.

Practically, Bernanke and Jellen are reducing the QE and the ECB is taking the slack.
Jellen reduce the QE to 60 billions/month and Draghi put out 80 billions €/month QE (equivalent to 105 billions US$/month)
Call it tapering, if you want.

Actually there are no longer socialists in Europe, either they have transformed into right wing, or they are out of power. Right now the right wing policies dictate Europes future. If it wasn't for their precious sytemic banking network about to implode they wouldn't twitch a musle.

painlord2k

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Quote from: thaaanos on April 07, 2014, 08:38:37 AM

too late if you ask me... The trust in the Eurozone is already broken, and Nazi parties rise across Europe.

They rise as opposed to what?
International Socialist in the government and bureaucracies and national socialists in the street.
It is not too late to cause hyperinflation and allow the national socialists to get the government and allow the bureaucrats change shirt from red/pink to black/brown.

Practically, Bernanke and Jellen are reducing the QE and the ECB is taking the slack.
Jellen reduce the QE to 60 billions/month and Draghi put out 80 billions €/month QE (equivalent to 105 billions US$/month)
Call it tapering, if you want.

thaaanos

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too late if you ask me... The trust in the Eurozone is already broken, and Nazi parties rise across Europe.

right wing authoritarian

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currency war = YES!!!!

johnytelevision

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Every day there are some good and bad bitcoin related news in the world. It just depend who you want to listen to.

S4VV4S

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http://www.businessweek.com/news/2014-04-06/draghi-s-1-dot-4-trillion-question-lingers-as-ecb-mulls-bond-buying

English version

Biontic

full member

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HodL tight, it's gonna get wild

For those unsure about what this 'Quantitative easing' is all about - its wonderfully explained here.
https://www.youtube.com/watch?v=PTUY16CkS-k

Carlton Banks

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Will also get the "currency wars" fully into action. Japan, US and China will eventually be forced to increase their own supply inflation to offset ECB printing.

painlord2k

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Merit: 254

When you think there are no good news for Bitcoin or all price signals are negative, then a ray of Sunlight come to shine:

http://intermarketandmore.finanza.com/draghi-prepara-il-bazooka-ecco-il-progetto-eqe-euro-quantitative-easing-62298.html

For not italian or german speaking people:

Mario Draghi, ECB Chairman (equivalent to the Federal reserve Chairman for the Euro zone) is preparing his 1000 billions € QE (80 billions €/month).
Bigger than Bernanke's QE3.

They are just playing bad cop/good cop exchanging the parts as they feel expedient.

Thias will bode well, very well, for Bitcoin (and other assorted cryptocurrencies), gold, silver.

Topic: There is hope: Euro Quantitative Easing (Read 2182 times)