ECB Quantitative Easing - what does it really say about the global ponzi scheme?

[Andre]

Here's a question for all those financial pundits out there. What does the Europen Central Bank's decision on 24 January to begin printing €60 billion per month really signal?

Is it primarily designed to provide cheap cash to EU governments by buying their bonds?

Is it designed mainly to prop-up the equity markets so that speculators can help to sustain the Ponzi scheme a bit longer?

Is it primarily aimed at providing EU banks with cheap cash to prop up the doomed banking system?

Is it mainly designed to make cheap cash available to service the mountains of unsustainable debt out there?

And if all or some of the above is true, the real question that intrigues me is what can they do next after the QE scheme ends?

Can anyone shed some light on this?

[rgray222]

Qualitative Easing (QE) is an attempt to stimulate the economy to keep the growth party going. They created this invisible magic not by printing bank notes but by pushing computer keys. If they flooded markets with actual cash we would be in for an inflation ride that would parallel hyperinflation in the Weimar Republic (Germany) in 1921. Instead they do it through stealth financial means which can actually cause deflation if the interest rates don't rise.

The problem I see with any QE program is that the money goes to the wealthy. Virtually all this money is filtered through the stock market which makes rich people richer and wealthy people incredibly wealthy. This in itself is not bad if everyone else has a fair chance to jump on this "free" money bandwagon but they don't. The middle class can participate in a very small way through pensions and 401's. Any retirement program tied to the stock market will probably have modest to good gains. But the real players are the very wealthy. The people who stand no chance of participating are those at the low end of the financial spectrum. The QE program might stimulate the low end of the economy and there may be more jobs at McDonalds but is not enough to truly make a big difference.

If you look at the QE program in the United States it has widen the wealth gap to new historical highs by every measure possible. President Obama has directed the Federal Reserve in the US to put between $50-$80 BILLION EVERY MONTH FOR FIVE YEARS into the stock market. You do not need to be an investment banker to understand who is going to benefit the most. A great deal of this money is to pay pack political party donors and to stoke the finances of big donors for upcoming elections.

It is common for politicians like Obama or Cameron to create unimaginable wealth for a handful of people and then turn around and demonize them for being too wealthy and "not paying their fair share." The logic behind Quantitative Easing is flawed beyond comprehension and the hypocrisy of government is stunning.

[lucidity]

The european QE will have the same effect as the USA QE and UK QE.
It's basically injecting money into the economy... inflation will result.
The inflation will erode the value of everyone's savings.
The inflation will erode the value of everyone's earnings.
Poor people will get poorer.

Simultaneously they've brought in laws (in the USA and UK ... i'm not sure about Europe)
to the effect that, in the event of another banking crisis, the banks can bail themselves out
by stealing money from the bank accounts of their own customers! .... do you think i'm joking ?

For this reason many people are (understandably) seeking alternative ways of storing
their savings. Buying property (houses, apartments), buying silver (or gold), investing in bitcoin...
Another useful strategy is to invest in other currencies.
The Swiss Franc is a current favourite... the expectation is that the Franc will gain value
for the rest of 2015 and perhaps into 2016 too.
Some are taking bets on the right time to buy Russian Rubles.
The value of the Ruble has crashed recently... how much lower will it go?
Assuming there's no WW III the value of the Ruble may begin to rebound
sometime later this year.

However.. money is only money.
Whatever happens economically and politically there is always an
opportunity for you to increase your emotional and spiritual wealth.

be happy

lucidity :-)