ECB’s Mario Draghi Fires His Monetary Bazooka!

I think this is a pretty fair statement, but in another email today Larry Edelson, someone (only) associated with the same company, Money and Markets, has sent out an email saying the DOW will go to 31,000 by 2016 and please watch his video to understand the reasons why. To my mind, at the very least this is an irresponsibile statement. It’s time, I think, for people to do their own homework.~J

afternoon-edition-mam
What Will the Impact Be on the Euro? Bonds? Stocks?

By Mike Larson

All eyes on Wall Street were focused on Frankfurt this morning. So what did European Central Bank President Mario Draghi deliver?

First, he said the ECB would launch a 60-billion-euro-per-month ($69 billion) QE program on March 1.

The program will initially run through at least September 2016, meaning it will ultimately total around 1.1 trillion euros ($1.3 trillion). But he also suggested at the press conference that it could become open-ended QE if it didn’t work.

Second, he announced that the ownership of the purchased bonds will be split by the ECB and national central banks. The idea is to force some of the risk of loss down to the individual countries that make up the euro zone in the hopes of spurring governments to take their own stimulus efforts.

At his press conference today, Mario Draghi gave the markets a jolt
with his version of QE and risk sharing.

So how did the market react? With a heck of a lot of volatility! The euro initially fell, then rallied, then fell again to as low as 1.343 against the dollar. Gold rallied sharply, then dipped, then rallied back again.Third, he did not follow the path of other central banks like the Swiss National Bank or Denmark’s central bank, and lower all its benchmark interest rates into negative territory. The main refinancing rate was held at 0.05 percent, while a separate deposit facility rate remained at negative-0.2 percent.

Long-term U.S. Treasury bond yields? They surged before the news, then fell after it, then rallied to finish the day slightly higher. Stocks were all over the map, too, rising sharply, then reversing lower, then reversing higher again to finish up more than 250 points on the Dow.

What does that tell me? Investors don’t know what the heck to make of the ECB’s latest gambit … especially because it’s coming on the heels of several other central bank surprises. That includes the surprise cut from Canada’s central bank yesterday, and the “Swiss Shocker” a few days before it.

“These central bankers have NO IDEA what to do!”

Here’s what is clear to me: These central bankers have NO IDEA what to do! They’re throwing everything at the wall to see what sticks. They’re moving with increasing frequency. And they’re not even coordinating those moves anymore. It’s an all-out banker brawl, with investors like you caught in the middle.Oh and while we’re at it, Denmark’s central bank followed the ECB move by cutting its main deposit rate again — to negative-0.35 percent today. It had already lowered that rate to negative-0.2 percent from negative-0.05 percent on Monday.

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5 Responses to ECB’s Mario Draghi Fires His Monetary Bazooka!

  1. Alex says:

    I can actually see the market hitting 31,000. I think it is possible. Why? Well if you look back several years to when DSK came to New York he was pushing for the IMF SDR to take the place of the U.S. Dollar as the worlds reserve currency.
    http://money.cnn.com/2011/02/10/markets/dollar/
    This is because the SDR is not as heavily leveraged as the US Dollar. This gives them another ponzi scheme to work, but only after the QE in Europe is pushed to it’s limit.

    Of course there are othe criminal elements that don’t want the SDR to replace the Dollar as the reserve currency so they got rid of DSK in the usual way.
    http://www.theguardian.com/world/2012/dec/10/dominique-strauss-kahn-case-settled
    Of course the outcome was that he stepped down as the head of the IMF.

    So now that The Federal reserve is going to ramp down the U.S. QE. Europe will kick in… then once it is exhausted the IMF will kick in with the SDR. This can go on for a while. Sure it will ruin lives and economies, but hey the criminals maintain control and come out on top. Also all this quantitative easing will bring tons of liquidity to the markets. It goes on and on. The only way to stop these guys is to expose them and for that a big step would be to Audit the Fed!

    Anyway just my take!

    • Jean says:

      Well, Alex, I’m on my iPad now, but there is a post you really should read about Putin’s master moves – game over! I posted it near the beginning if the month. . .and it’s translated from the Russian. Many people think like you do, but I think they are in for a surprise . . . Hugs, ~Jean

      PS the article is titled Grandmaster Pitin’s Golden Trap🙂

  2. swo8 says:

    Talk about a bubble. They can’ keep gold down for long. It’s going to take a wheel barrow of money to buy a loaf of bread.
    Leslie

    • Ken says:

      Wow! The Central banksters via the puppet governments and their MSM ministries of propaganda have gotten the people to believe that the way to manage their debt is through more debt. They actually have the people believing that QE is stimulus. We have been witnessing the biggest bank robbery in history and the banks are doing the robbing. The rich are getting richer and poor are getting poorer. Once again we all know who will benefit and who is on the hook for this theft. They blatantly privatize the profits through their derivatives casino and socialize the losses. This is all crashing right now. Their greed and corruption have no bounds or shame. Unfortunately if the sheeple don’t receive an invitation from their political parties to the economic collapse, they won’t know it’s happening until their Bread and Circuses get interrupted.

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