{"id":4607,"date":"2015-01-18T09:16:15","date_gmt":"2015-01-18T14:16:15","guid":{"rendered":"http:\/\/olduvai.ca\/?p=4607"},"modified":"2015-01-18T09:16:15","modified_gmt":"2015-01-18T14:16:15","slug":"the-ecb-will-fail-given-the-history-lessons-of-us-and-japan-warns-deutsche-bank","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=4607","title":{"rendered":"The ECB Will Fail Given The “History Lessons Of US And Japan”, Warns Deutsche Bank"},"content":{"rendered":"

The ECB Will Fail Given The “History Lessons Of US And Japan”, Warns Deutsche Bank<\/a><\/h3>\n

Recall that the stated purpose behind the reason why Mario Draghi’s ECB is about to launch a European government debt monetization program ranging between EUR500 and 1000 billion is to halt deflation, spark credit creation and rekindle inflation. Alas, if that is indeed the case, then as Deutsche Bank said has already determined\u00a0apriori<\/em>, it will be a failure. Here’s why from the biggest German bank.<\/p>\n

First, a broad strokes preview of what the world’s most confused Central bank will do this week:<\/p>\n

\n
[The ECB] is trapped down a dark alley and they will bite<\/strong>. For all the pros and cons of public QE as well as the hows and whens, at the end of the day the market has pushed the ECB into that corner.\u00a0Within the context of the practical limitations of QE, we have no doubt that Draghi once again will leave a warm fuzzy feeling that they are prepared to do all that it takes<\/strong>. Of course, like OMT, it probably doesn\u2019t mean they are buying BTPs come February 1st, but that doesn\u2019t matter for BTPs. It also doesn\u2019t matter for the Euro zone outlook given the dubitancy of QE efficacy.<\/div>\n<\/blockquote>\n

And here is why the ECB too will follow its peers, the Fed and BOJ, in\u00a0failing\u00a0<\/em>to boost inflation expectations which at last check were below the Lehman collapse levels and sliding fast (see “The Chart That Terrifies The Fed<\/a>“)<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The ECB Will Fail Given The “History Lessons Of US And Japan”, Warns Deutsche Bank Recall that the stated purpose behind the reason why Mario Draghi’s ECB is about to launch a European government debt monetization program ranging between EUR500 and 1000 billion is to halt deflation, spark credit creation and rekindle inflation. Alas, if […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[57,85,124,1256,233,282,452,1044,538,2719],"class_list":["post-4607","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-japan","tag-boj","tag-central-banks","tag-debt-monetization","tag-ecb","tag-european-central-bank","tag-japan","tag-mario-draghi","tag-money-printing","tag-omt"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4607"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4607\/revisions"}],"predecessor-version":[{"id":4608,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4607\/revisions\/4608"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}