Mario Draghi started a new round of QE. Again. Last time, he said he had a bazooka, but that bazooka was obviously not powerful enough. He have also previously said that he will do everything he can to boost the market again. In addition to his QE program, he also lowered the deposit interest rate.
You can borrow money in your bank and your bank will pay you money for that. Isn`t that funny? Did someone say something about «free lunch?» You cannot find cheaper money at moment and that will make people borrow more money. The strategy is to boost the economy and create a level of optimism.
In the Euro Area, the ZEW Economic Sentiment Index measures the level of optimism that analysts have about the expected economic developments over the next six months. The optimism isn`t sky high, but it isn`t deeply low either.
The ZEW indicator rose by 21,2 points
in September 2019. It was expectation of -32,2 in September but it
came in at -22,4 this month. The servey covers up to 350 financial
and economic analysts and 47,4 percent of the surveyed analysts
expected no changes in economic activity and 15,1 percent expected it
to improve while 37,5 percent predicted a deterioration in economic
condition.
The index reached an all time low of -63,70 in July of 2008. (-100 means all analysts expect the economy to deteriorate). Right before the dot-com-bubble in January of 2000, the index reached an all time high of 89,90.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
What a day. A very important day for
Europe and the rest of the world. The ECB left its main refinancing
operations rate unchanged and lowered the deposit interest rate by
10bps to -0,5 percent. Not only that; policymakers also approved a
new round of bond purchases at a monthly pace of €20 billion as
from November 1st.
They do this because we have Brexit and trade war with China and the plan is to boost growth. At the same time, the ECB lowered its GDP forecasts to 1,1 percent this year. Inflation expectations were also slashed to 1,2 percent in 2019.
President Trump attacked the FED,
calling Fed Chair Jerome Powell and other members «boneheads» for
not driving the U.S interest rates down to zero, or less. Trump
explained that he wanted negatie rates in order to refinance the
outstanding $22 trillion in government debt and lengthen the term.
Right now, there is a $16 trillion in
negative yielding debt around the globe. What a number! Historically,
negative rates have been used as an anti-recession tool to boost
growth when the economy is weak.
But negative interest rate have now become much more common. Just take a look at the value of the negative-yielding debt over the world. It has shot up to $16 trillion, according to BofA.
If you have your money in your bank, it
means you have to pay your bank to lend them your money. Crazy right?
Normally, you will get paid from the bank if you have your money
there, but with negaive interest rate, it is turned up side down.
Similarly, with government-issued debt,
global investors also pay money to hold a bond with negative yields
because the premium that they initially paid for it exceeds the total
interest they receive over the life of the bond.
Switzerland have negative interest rate
at -0,75 percent. Denmark; -0,65 percent. Sweden; -0,25 percent and
Japan; -0,10 percent.
Other countries in Europe are near
negative interest rate. All these countries have zero interest rate;
Spain, Slovakia, Slovenia, Portugal, Netherlands, Malta, Luxemburg,
Latvia, Italy, Ireland, Greece, Germany, France, Finland, Euro Area,
Estonia, Cyprus, Bulgaria, Belgium and Austria.
In comparison; the U.K have 0,75 percent interest rate and the U.S have 2,25 percent. The U.S lowered the rate for the first time in July for the first time since the financial crisis, as inflation remains subdued amid hightened concerns about the economic outlook and ongoing trade tensions with China.
The U.S economy is good, but the global economy is slowing, notably in Germany and China. There are also growing possibility of a hard Brexit, rising tension in Hong Kong, and dissolution of the Italian government. Fed Chair Jerome Powell have a great challenge.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Politicians around the world have
something to learn from president Trump; Listen to the people. You
are there for the people. Otherwise, you will face some problems.
Just take a look at Carry Lam in Hong Kong.
She is not chosen by the people in Hong
Kong but by the Godless one-party rule Communists in Mainland China.
The Communists in Bejing are dictating Carry Lam and tell her what to
say, but that is not what her own people in Hong Kong want.
This is unbelievable. Two million
people are joining the Hong Kong protesters, but the government isn`t
listening to the people. And this has been going on for a very long
time now. So, what is the next step? The Hong Kong protesters want
international support and that`s why they went to the U.S consulate
to ask president Trump for help.
President Trump last month suggested
China should «humanely» settle the issues in Hong Kong before a
trade deal could be agreed but had earlier called the protesters
«riots» that were a matter for China to deal with.
The activists claim that only countries
like U.S can change the current situation in Hong Kong. Activists
want the U.S to pass the Hong Kong Human Rights and Democracy Act.
They call on president Trump to help «liberate» the city.
Thousands of protesters marched to the
U.S consulate, waving American flags and singing the Star Spangled
Banner. A huge banner that read «Do you trust the Communist Party?
Are you crazy? Was hung from the overpass, and protesters repeatedly
chanted slogans like «USA», and «Fight for freedom», stand with
Hong Kong.»
Another banner was held by two Hong Kong protester; President Trump, please liberate Hong Kong. Defend our Constitution!
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Former Overstock CEO Patrick Byrne
revealed the Deep State Coup a few days ago on Fox News. Mr Byrne
said he had released the statement because he realized that someone
would uncover his involvement in the federal investigation if he did
not reveal it himself.
He decided to come forward after a conversation with his «Omaha rabbi», a reference, he said, to Mr Warren Buffet who are a good friend of him. In the statement, he referred to what he described as a romantic relationship with Ms Maria Butina, who is serving an 18-month prison term after being accused by federal prosecutors of trying to infiltrate powerful political circles at the direction of the Russian government.
Mr. Byrne said he helped the F.B.I with
the «Clinton Investigation» and «Russia Investigation.» Those,
he said, «turned out to be less about law enforcement and more about
political espionage conducted against Hillary Clinton and Donald
Trump.»
He describe the people who runs the
country for the «Men in Black». (and he is not talking about the
film). The Men in Black is at the top of the F.B.I og they offered
Mr. Byrne 1 Billion dollars to not speak up about all this mess. He
refused.
Instead, he is selling his own retail company Overstock and maybe Target will buy it?
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Progressive Congresswoman Ilhan Omar
likens anti-Israel resolution to boycotts of Nazi Germany and the
Soviet Union. The Media Mob say Trump is a racist and say nothing
about Omar who is supporting BDS (Boycott, Divestment and Sanctions)
movement.
BDS is a Palestinian-led campaign promoting various forms of boycott against Israel. Some «smart» people are often protesting against Israel but it is nothing more than anti-semittism. In other words; Hate.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Ket Garden
Business, Politics, Finans 