ECB Watch


It doesn’t fund it - you print the money, you unprint the bond; it’s an asset swap; the Monetarists think Reserves have some sort of magic property that induces lending, which is nonsense of course.


How can it be one for one. There is more govt. debt in issue now than ever before. Ireland’s problems continue no matter what the Noonan spin. The UK actually has a bigger deficit than France. It can’t be one for one while govt. debt spirals. I can’t believe that we could be arguing that monetarists don’t believe in pump priming economies through deficit spends, or that monetarists abhor money printing. Milton Friedman come on down.


Europe’s Monetary Madhouse - David Stockman -> … -madhouse/


Draghi predicts continued low interest rates - [google translate] -> … 76464.html

It’s not deflation any more, it’s negative inflation -> … bde719ee44


Stockman is, usually, a complete moron who doesn’t understand fiat currency, However, this time, he is correct, because, of course the individual states do not share a common treasury meaning they are at risk of default unlike the US, UK, Japan, Oz, Canada et al.


Who said the main ECB refinance rate cannot go into negative territory?

Dainsh Central Bank Cuts Lending rate to -0.20%, Deposit rate to -0.20% … rkets.html

Meanwhile, BNP expect another Danish base rate cut to -.0.40%, expect another 50 bps SNB cut from -0.75% to -1.25%. One commentator today said that the ECB will cut by 10 bps on Thursday. Seems unlikely.


Surely, at some point, people are going to realise that Monetarist based policies are fundamentally flawed; that controlling the price of one interest rate in the economy has very little widespread impact.


Why the Hell Does Mario Draghi Want to Leave the ECB Now!? -> … ve-ECB-Now

ECB president Draghi hits out at German critics - -> … -1.2065437


None Dare Call It Fraud—–Its Just A “Savings Glut” - -> … -it-fraud/


Drahgi presser interrupted!! Female protester

"ECB Dictatorship!! ECB Dictatorship!!


There’s no interest in buying them anyway. :angry:


Anatomy of a Bail-In - -> … 201405.pdf
March 4, 2014

The Banking Regulation Review -> … e-2014.pdf
May 2014


A great chart from TrueEconomics.

(start at 1999 and follow the line through 2000, 2001 etc to see ECB rates and q/q growth)

EuroLand - Where Growth goes to Die.


ECB Said to Seek Million Euros of Dutch, Irish Mortgage Debt


10 bps cut looks to be on the cards in December according to JPM and Danske who are reading into hints by the ECB.

WSJ reports ECB will cut several rates, “Mr. Draghi said that menu of options includes further cuts in some of the central bank’s key interest rates, including the deposit rate, which is already negative, meaning banks pay to park excess deposits at the central bank.”

A 10 bps cut would bring the deposit rate to -0.30% and the repo rate to -0.05%.

Great news for tracker holders. More pressure on banks to lower SVR’s. Bad news for depositors.


It’s actually embarrassing at this point. We’ve dropped what? 500bps at this stage and it hasn’t worked, maybe another 10bps will do it? :unamused:
Or, gee, maybe the premise is completely wrong!

Monetarist central banking is dead & buried. It’s ugly offspring, “inflation targeting” central banking, now needs to be put down.


Except they won’t stop. It’s benefitting too many people who can influence the puppets at the centre of this nonsense.


I’ve got a (large to me) lump sum deposit which matures in early November. It will not be going back on deposit except maybe for a small part.
It will go in to shares. It will not go in to a house in Ireland.
These ECB rates do have an effect on behaviour although the behavour they encourage may not be beneficial to society.


Pictet speculate that the repo cut in December will be 5 bps and 10 bps for the deposit rate. … dependent/


Not sure if this was covered in another thread or not.

ECB to blame for Irish austerity, says UK Labour adviser … -1.2410743


The ECB as sovereign lender of last resort … -last.html