ECB Extends QE but Tapers it – Gold prices rise in Euro terms

ECB Extends QE but Tapers it – Gold prices rise in Euro terms


Welcome to illuminati silver, we tell you
the truth about silver. Today is Thursday 8th December 2016 and we
are commenting on the ECB decision today to both extend and taper its QE Programme.
Most European stock markets rose today between 1% – 2% following the European Central Bank’s
decision to extend its asset purchase programme by 9 months, longer than had been expected,
while cutting the size of monthly purchases. The ECB loosened restrictions on the assets
it could purchase and President Mario Draghi gave a dovish press conference where he said
the level of purchases could rise again if needed.
In essence: 1. The ECB extends QE until December 2017
2. The new €60bn a month rate was introduced but would not begin until April 2017. While many investors were confident of dovish
messages from the ECB, few saw a “tapering” coming It seems that the Central Bank has become
stuck between two opposing interests: the other central banks, which are against extending
quantitative easing, and the public, which is still looking to the ECB for fiscal stimulus. George Selgin, senior fellow at the Cato Institute
describes the situation extremely well: “The ECB is playing a difficult (and dangerous)
game. It wants to reassure its more hawkish critics, including German representatives
on its Governing Council who voted against the current purchases, that its quantitative
easing deadlines aren’t meaningless. The ECB also wants to give the public some
‘forward guidance,’ by committing itself to a definite policy course in the future.
Besides countering uncertainty, which itself acts as a drag on investment and growth, an
advanced commitment to future easing is intended to enlist the public’s help in boosting
spending and interest rates by raising today’s inflation forecasts. Consequently, central bankers, by placing
too much emphasis on current conditions, can end up contributing to economic instability
instead of combating it. When central banks commit to future policy actions in advance,
as they do when they make use of forward guidance, they’re even more likely to end up regretting
their actions.” The reaction has been the immediate fall of
the euro by 1pc to $1.06 where it currently stands. We remember back to 11th March 2015
where the euro slipped to $1.0599 below $1.06 for the first time since April 2003. We can now see it falling potentially further
against the dollar especially if the FED raises rates next week. Euro dollar parity should
not prove surprising and the impact on the gold market is that although gold has fallen
by $2 today in Euro terms it has risen by 12 Euros. With further weakness still expected,
we should not be surprised to see gold and silver purchases increase again within the
Eurozone, though for the moment the stock markets are the flavour of the month. We hope you have found this video interesting
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is updated daily can be found at facebook.com/illuminatisilver Disclaimer: Illuminati Silver owners come from a background
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worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of
its owners.

12 Comments

  1. How much PMs are left in t/ earth do you think…after ALL these decades of mining? PMs WILL…are skyrocketing in certain countries. You are VERY fortunate, for now, if you can buy w/ US$ or British pound. Here in Canada, one ounce of silver, Buffalo for ex., will cost around $25 Cdn. It's gonna get MUCH worse….where me thinks PMs will not be available at ANY price.?

  2. This bubble or balloon they keep blowing up reminds me of Humpty Dumpty sitting on that wall. All the kings horses and  all the kings men won't be able to put these world economies back together again when they fall or should I say blow for a long long time. Out.

  3. Italy= Banks in crisis with bad loans (Renzi is happy he's left as its not his problem anymore and he wont be blamed for it). 5 star party will probably start a campaign to exit the EU. Portugal= Not talked about as much but its banks are starved of capital and has a lot of bad loans. Spain= Had a crisis in 2012 and Banco Popular has got rid of its chairman who will be replaced. Youth unemployment sky high and country struggling with its worst debt its had since 1909. Germany= Duetsche Bank escapes by the skin of its teeth by posting profits (They probably had to say they made profits to stop any panic) but the problem is still there with its huge exposed derivatives and they are worried about the result of the Italian referendum. Greece and Cyprus= No need for me to explain that one. France = Experiencing the same problems as Italy will be interesting to see what happens regarding the French Referendum next year. UK= Brexit has caused Sterling to dip and Phillip Hammond to do more spending of billions next year as stated in the Autumn Statement. Switzerland= negative interest rates. Throw all these banking ingredients into the pot and wait for the lid to blow off very soon.The answer by ECB banks…..Print more money and debt

  4. My best justification,when people tell me gold is a dead metal,and people who value it are dying off….Then how much money printing is the straw that will break our backs ! They print and I stack , Im guessing,at some point ,golds worth would be measured in nano amounts if we were to back our fiat paper……just a theory.

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