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ECB’s Draghi fired his bazooka and brought rates down to ZERO%

A shock for the little man who still had some money in the bank and used to get something in exchange. A couple of euros to pay the fuel or the bus ticket in order to go to the bank and fix a new date for his deposit.  Central European Bank chief Mario Draghi announced today that interest rates are from form 0.50 % to 0.00%

: “rates will stay low, very low, for a long period of time” but “we don’t anticipate that it’ll be necessary to reduce rate further.”

Of course, he meant that there would not be “negative interest rates”, when you pay money to have your money deposited at the bank. This would have been a heavy blow to Greeks and expats from euro-zone countries as they cannot withdrew their money the whole amount of their deposits due to capital controls.

I don’t want to think of the nightmare for pensions as many funds have earned from rates.

Another issue is that with his new monetary policy, the loans to banks will be extremely low.

Draghi: Extremely cheap 4-yr loans to banks

When the USA went down to 0.00% interest after the Lehman Brothers crisis, the result was …positive: jobs creation. But job creation needs much more than just “low interests” – less bureaucracy and tax incentives for investment,  for example.

Mario Draghi may have been proud of his new regulations except for one problem: His policy backfired within minutes and

The EURO skyrocketed to 1.11 towards the USD.

Draghi, the Exterminator of the Little Euro Man, was supposed to keep the Euro low in order to have the euro-zone area competitive.

Draghi: We have shown today that we are not short of ammunition.

The Bazooka has certainly a defect when the Ammunition backfires…

gold surge/ brent collapse – thats all u need to know

more info here – there is sheer excitement among trades, finance reporters and everyone who has a common sense , here

PS at the end of multiple wrong decisions we will see the EU and the EURO collapsing almost simultaneous.

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One comment

  1. “competitive” eh.

    Just like the refugees are supposed to “compete” with EU homeless and EU jobless for the almost non-existent jobs.

    Long live oligarchy, theft and extraction!!!