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By Pete Moore On September 12th, 2019

The European Central Bank is using up its last bullets in an attempt to bolster its ailing economies. The deposit rate on reserves at the ECB has been cut further, from minus 0.4% to minus 0.5%. That’s a record low even for the ECB.  It’s also opening up the liquidity tap again to the tune of 20 billion euros a month.

Outgoing ECB president, Mario Draghi, has also urged governments to cut taxes in order to help their economies. Like that’ll ever happen.

The last things that the Eurozone needs are a Germany heading for recession and a WTO Brexit …



  1. Never mind – it all worked out so well…….


  2. This policy has already failed but they can’t admit it so they try again. Reducing the rate is a further attack on savers but it also undermines the Eurozone banks’ profitability, and several of them, notably Deutche Bank are already in the basket case category.

    Of course Trump wants the Fed to do exactly the same. This week we were treated to to yet another Twitter tantrum in which he called for negative rates and QE, even though the US economy is close to full employment. As a Wall Street cheerleader he is terrified that the market will melt down before election day next year, so he wants to see it go even higher on the back of free money, which will of course be splurged on yet more share buy-backs and pointless takeovers. Anything except productive investment.

  3. The Fed chairman is the enemy of the people

    I know this because Honest Donald Trump said so.

  4. Here’s the Tweet, from yesterday morning. The first few replies are worth a read 🙂


  5. Trump has thrown another tantrum today, the toys are flying out of the pram:

    “US President Donald Trump has reacted furiously to the euro’s fall against the dollar following the European Central Bank’s (ECB) decision to cut interest rates for the first time in over three years.

    The euro fell as much as 0.7 per cent following the announcement, but was down 0.3 per cent by 2.30pm UK time to stand at $1.098. Lower interest rates make euro-denominated assets less attractive, reducing demand for the currency.

    Trump tweeted: “European Central Bank, acting quickly, Cuts Rates 10 Basis Points. They are trying, and succeeding, in depreciating the Euro against the VERY strong Dollar, hurting U.S. exports…. And the Fed sits, and sits, and sits. They get paid to borrow money, while we are paying interest!”

    The euro has fallen over five per cent against the dollar over the last year. Yet its decline is not simply a result of ECB policy, but also reflects stronger US growth, which makes the dollar more valuable. In his press conference following the decision, ECB president Mario Draghi bluntly rebuffed Trump, whom he called the “First Tweeter”.


  6. Phantom, on September 12th, 2019 at 9:09 PM Said:

    The Fed chairman is the enemy of the people

    The Fed is an enemy of the people. It is the ‘Federal Reserve’, having no government control contrary to the Constitution, and no reserves. It’s a fraud.

  7. Yet the US Has enjoyed great prosperity generally since the Fed was created

    Imagine that

  8. The Fed should be fully audited every year. It has way too much power and way too little accountability. This has been a demand of Ron Paul and others like David Stockman for decades and it should be met.

    If Trump professes to hate the Fed so much, why does he not action this? Could it be because Wall Street is against it because it just loves all that cheap money to speculate with? And Trump is a fully bought and paid for shill for Wall Street, we know that for sure. And he doesn’t care how big the federal deficit gets, but he wants to be able to charge holders of US Treasuries for the privelege of lending to Uncle Sam, just like the Germans can. So he wants the same thing as Wall Street, permanently low interest rates, preferably negative rates. It has already happened in the EU and Japan and it seems inevitable in the USA and the UK soon.

    Welcome to Bizarro World where you get paid to borrow and charged for lending.

  9. Trump – totally – likes cheap money and debt, And he brags about not paying his bills in full .He has said so many times in his career.

    Here, in 2016 from Politico

    Donald Trump, the presumptive Republican nominee for president and self-described “king of debt,” offered a glimpse into his deal-making playbook Wednesday morning as he defended himself from Hillary Clinton’s attacks.

    “I’m the king of debt. I’m great with debt. Nobody knows debt better than me,” Trump told Norah O’Donnell in an interview that aired on “CBS This Morning.” “I’ve made a fortune by using debt, and if things don’t work out I renegotiate the debt. I mean, that’s a smart thing, not a stupid thing.”

  10. The last things that the Eurozone needs are a Germany heading for recession . . .

    When Germany can no longer meet the bills that means others (Poland) are going to have cuts made to the money the EU gives them. And when those Zombie economies start to tank and their people will have to wait in line along with all the non-EU immigrants to get a job, being in the EU will not be seen as such a good idea.


    Pete, you’re way behind time. It was 9 years ago that the Eurozone was finished and the Euro was on its last legs. Remember?

  12. In 2009-2010 the same guys promised significant inflation in the US and world also.

    Still waiting!