Fed and ECB prepare a new party for the financial sharks

(ECB, 2019)

At the time of trillion dollar companies and global borrowing much above the 2008 crisis levels, and after nine years of continued swelling of values in all and every western capital markets, bankers decided there cannot be turning back to normality, interest rates and debt wise. They say the thing must not be stopped from continuing inflating.

If it does, a new financial meltdown will erupt and will largely surpass the abilities of the central banks to again save the financial system. So, it’s better to continue feeding the banking leviathans with zero cost money. Both the American and the European central banks have succumbed to the treat. We will learn soon where the thing leads to.

The Fed changes course

The proof that the crisis is already here first surfaced in the United States early this January. On the first Friday of this year, the American central bank (the US Federal Reserve), announced it decided to reverse its plan for gradually returning to normal levels of interest rates and less accommodating monetary policy.

All along 2018, the Fed’s new Chairman, Jerome Powell, was resolutely continuing his predecessor’s less accommodating monetary policy. Early last year he started a program of a series of small interest rates hikes (0.25% each time) in order to set the cost of money back at normal levels and make the banks start paying something for the Fed’s 4.5 trillion dollars they had received for free.

‘America first’ for…bankers

New York bankers though, thought differently and convinced the ‘America First’ President Donald Trump that the new monetary measures were not good. So, Trump threatened to fire Powell if he doesn’t change his policy lines.

Apart from Trump’s threats though, Powel must have realized that the banks were readying to inflict a new financial melt-down on the real economy. They have done this more than once in the past twenty years. So, on that Friday, Powell announced “the central bank was open to changing course on rate hikes”.

No end to ‘casino’ finance

This was the signal that the ‘Casino’ finance will continue for as long as possible. The American banks will continue holding the $4.5 trillion for free and ‘investing’ it wherever they like. At the same time, the real economy will continue producing poverty for the many and immense riches for the princes of the markets.

Last week, the syndrome of more and more free money for the market leviathans crossed the Atlantic Ocean and engulfed Europe. The threat of another recession in Eurozone, which materialized lately made the European Central Bank more susceptible to the new ‘ideas’.

The ECB

Some days ago, Benoît Cœuré, prominent Member of the Executive Board of the European Central Bank said, “The ECB would then be called on to increase its activities as an international lender of last resort”. He was speaking on 15 February at the right place, in the Council on Foreign Relations in New York City. No need for more evidence to prove that Eurozone’s central bank is following in the steps of its big sister, the Fed. Cœuré promises abundant finance for the financial sharks even on the other side of the Atlantic Ocean.

The problem is, though, for how long still will the real economy be able to carry the burden of all those free trillions in the hands of the financial leviathans?

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

Stopping antimicrobial resistance would cost just USD 2 per person a year

Further reforms will promote a stronger and more inclusive Hungarian economy

How tomorrow’s buildings will make you – and the planet – healthier

Those who produce food are among world’s hungriest – UN rights expert

New VAT rules in the EU: how a digital sea could have become an ocean

The Europeans with a job diminish dangerously

4 reasons cities should embrace Universal Basic Income

How electrification will make the world more inclusive

Disaster Medicine in Medical Education: the investment you just can´t afford to ignore

Generation Z will outnumber Millennials by 2019

COP21 Breaking News_03 December: Transport Industry Drive for Improved Energy Efficiency and Electro-Mobility to Stem High Growth of Emissions

Fighting for minds of youth in Latvia

ECB will be the catalyst of Eurozone’s reunification

TTIP’s 11th round major takeaways and the usual “leaked” document

South Sudan’s women caught up in ‘futile man’s war’ UN gender equality chief

The EU Commission is lying to the “Right2Water” campaign

European Youth Event 2016 – bridge between youth and policy makers

EU Parliament: ECB accountable for not supporting real economy

MEPs propose measures to combat mobbing and sexual harassment

3 lessons from India in creating equal access to vaccines

UN chief highlights action across borders for ‘stable and prosperous Eurasia’

ILO welcomes new UNDP report that places decent work at the heart of sustainable development

Climate change update: consistent global actions urgently needed as we are running out of time

Why precision medicine is the future of healthcare

Parliament makes it easier to organise a European Citizens’ Initiative

European tourism remains a strong growth factor

Budget MEPs approve €34m in EU aid to Greece, Poland, Lithuania and Bulgaria

European Parliament approves more transparency and efficiency in its internal rules

Why Eurozone needs a bit more inflation

Business uncertainty rises as US grants only temporary exception to EU for steel and aluminium tariffs

Abandoned mines could become the farms of the future

AI can be a game-changer for the world’s forests. Here’s how

GSMA Announces New Speakers for Mobile 360 Series – MENA, in association with The European Sting

How we can work together in the fight against NCDs

Responsible Artificial Intelligence

‘Safe Eurobonds’: a new trick to betray the south euro area countries

EU approves disbursement of €500 million in Macro-Financial Assistance to Ukraine

Europe must regain its place as world leader in digital technology

Impossible Brexit options: WTO or new referendum?

Teamgum @ TheNextWeb 2014

Youth Internationalization: part of everyday life in JADE

Education remains an impossible dream for many refugees and migrants

Germany readies to pay for the Brexit gap in EU finance

French elections: by the time the EU economy revives and the migration crisis is solved extremists could take over Europe

Spain will soon overtake Japan in life expectancy rankings. Here’s why

What can stop the ‘too big to fail’ bankers from terrorising the world?

The 4 types of leader who will thrive in the Fourth Industrial Revolution

Rule of Law: Commission launches infringement procedure to protect the independence of the Polish Supreme Court

Is a uniform CO2 emission linked car taxation possible in the EU?

COP21 Breaking News: “There is an ecological debt that the world needs to pay back to Africa”, French President Francois Hollande promises 2 Billion euros by 2020 from Paris

Companies have a new skill to master – innovation

Our children’s career aspirations have nothing in common with the jobs of the future

Fed and ECB prepare a new party for the financial sharks

The Junior Enterprise concept, one of the best ways to develop practical skills

Sudan: Health challenges in the Sustainable Development Goals era

MWC 2016 LIVE: Ericsson/Cisco partnership on track, insist execs

Scientists are using machine learning to unlock the mysteries of long-dead languages

Nearly 900 reportedly killed following ‘shocking’ intercommunal attacks in DR Congo

These are the countries where most adults still don’t have a smartphone

‘We need to do more’ to transform the world, deputy UN chief tells African audiences

Energy Union: EU’s effort towards a cleaner climate with integrated energy market

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s