In a move of pure desperation, the European Central Bank (ECB) reveals their Bailout as QE ends.
Translation: They’re broke and are running for cover so the sheeple don’t see how the ECB has destroyed their retirement funds…and future.
ECB president, Christine LaGarde, said that the central bank will activate one part of the bond-purchasing firepower it’s earmarked as “a first line of defense” against a possible debt-market crisis this coming Friday… which just “coincidentally” happens to be the day the ECB’s QE ends!
Don’t’ you just love the phrase “possible debt-market crisis?”
It’s a nice way of saying to the sheeple: “We are soooo screwed but we’ll keep kicking the can down the road hoping you won’t figure out what we’ve done to you.”
A Bailout as QE Ends?
Ironically (or NOT) this “First Line of Bond Crash Defense” acts as a band aid giving them “flexibility” to cover their misuse of funds from the ECB’s €1.7 trillion ($1.8 trillion) pandemic bond-buying portfolio.
And since there are no other buyers for Europe’s toxic bonds, they’re desperately trying to curb unwarranted turmoil in government bonds as interest rates are lifted from record lows to curb unprecedented inflation.
Let’s call it “Catch 22.”
As it stands, they can’t pay the debt on existing bonds and any rise in rates becomes a double-edged sword.
Any rise in rates decreases their already declining bond prices.
And it ultimately creates more inflation…which, in turn spurs more sovereign defaults.
The point is simple.
The ECB no longer matters and has no control over their future.
And any bailout attempt – like the one they want to put in place tomorrow – will end in disaster.
And because of their stupidity/sanctions against Russia they’ll soon see they cannot print up heat or fertilizer.
Speaking of Russia, be sure to see tomorrow’s post.
We’ll show you how Russia’s forced default – thanks again to sanctions – has been a windfall for their economy.
The Problem with Bailouts
Ironically (or NOT) the collapse of Europe’s bailouts to replace their QE will present opportunities for those with ears to hear.
Learn about them in out July “…In Plain English” newsletter (HERE).
Share this with a friend…especially if they think Europe is a safe place to invest.
They’ll thank YOU later.
At Financial$Matter We’re Not Just About Finance.
We simply use finance to give you hope.
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