SocGen Explains That Since The ECB's QE Will Fail, It Will Need To Be Increased To €3 Trillion, Include Stocks

Submitted by Tyler Durden on 01/22/2015 - 15:27
"The potential amount of QE needed is €2-3 trillion! Hence for inflation to reach close to a 2.0% threshold medium term, the potential amount of asset purchases needed is €2-3tn, not a mere €1tn. Should the ECB target such an expansion of its balance sheet, it would have to ease some conditions on its bond purchases (liquidity rule, quality...) or contemplate other asset classes- equity stocks, Real Estate Investment Trust-(REIT), Exchange-traded fund (ETF)...- as the BoJ, previously."

What Mario Draghi Said When Asked If His QE Will Unleash Hyperinflation

Submitted by Tyler Durden on 01/22/2015 - 17:08 Question:. what would you say to those who are concerned that when the ECB buying up bonds, electronically printing money, whatever one calls it, is the first chapter in a story that leads inevitably towards hyperinflation. What is your response to that?
Answer: I think the best way to answer to this is have we seen lots of inflation since the QE program started? Have we seen that? And now it's quite a few years that we started. You know, our experience since we have these press conferences goes back to a little more than three years. In these 3 years we've lowered interest rates, I don't know how many times, 4 or 5 times, 6 times maybe. And each times someone was saying, this is going to be terrible expansionary, there will be inflation. We did OMP. We did the LTROs. We did TLTROs. And somehow this runaway inflation hasn't come yet.

"Stocks Have Gone Up Due To The Fed" Carl Icahn Warns "It Will Come Home To Roost"

Submitted by Tyler Durden on 01/22/2015 - 13:24 In an awkwardly uncomfortable non-cheerleadery few minutes on CNBC this morning, he-who-must-be-listened-to (when he is buying stuff and not selling it) - Carl Icahn - dropped a few truth bombs on an unsuspecting Scott Wapner. Starting with warnings about energy sector debt, fearing a surge in defaults and "what management can do to hurt you" if you own that debt, Icahn then moved on to discuss today's ECB move and its implications. Confirming his "extremely cautious" stance to the overall market, Icahn explained how "the reason the stock market has gone up is because of the Federal Reserve," and now the rest of the world is jumping on the bandwagon "with all this issuance of money," and the implicitly strengthening USDollar "will come home to roost at some point." While not pointing to a specific point in time, Icahn concluded, "you do have to be extremely cautious and we have hedges on.. and it's too early to buy oil stocks/bonds."

The Data Doesn't Lie - Here's What's Really Driving Interest Rates!

Submitted by Tyler Durden on 01/22/2015 - 14:35 Hilsenrath claims a little birdie (Fed insider) told him that rates will be raised later this year. We expect the Fed is just jerking him around. There is nothing fundamentally or otherwise to suggest rates will move up. We're not sure if Hilsenrath is part of the game or just a gullible fool who is being used to keep the market off balance. Why would the Fed want the market off balance? The Fed does so intentionally because theory suggests such a strategy will improve the effectiveness of monetary policy. Regardless of what the Fed says, the reality is that interest rates are not moving up anytime soon. Here's why...

Bloomberg's Handy Guide To Why Falling Prices Are Horrible For You

Submitted by Tyler Durden on 01/22/2015 - 14:09 With almost perfect comedic timing, Bloomberg unleashed the mainstream media's Draghi-confirming raison d'etre for QE... explaining why - shock horror - deflation is bad for you. No matter that the QE efforts of The Fed (and BoJ) entirely (totally and utterly) failed to spark any increase in inflation expectations, we must try try try again. However, despite the exuberant disgruntlement with deflation that Bloomberg offers, Portuguese economy minister Guindos had something 'odd' to say this morning: "European deflation is positive." We are sure he will issue some clarifying statement soon enough walking back such a dangerous and anti-authority comment.

Ukraine Preparing for War with Russia

from We Are Change:

Draghi-geddon Collapses Euro & Crushes Crude; Stocks Soar But Bonds & Bullion Bid

Submitted by Tyler Durden on 01/22/2015 - 16:10

Smuggling Drugs Across The Mexican Border? There's A Drone For That

Submitted by Tyler Durden on 01/22/2015 - 15:49 Worried about the honesty of your drug mule? Concerned that your smugglers will demand higher and higher minimum wage? There's a drone for that. Once again technology has enabled 'progress' as AP reports police in a Mexican border city said Wednesday that a drone overloaded with illicit methamphetamine crashed into a supermarket parking lot. As AVWeb notes, drones carrying illegal drugs and contraband have been among the creative ideas used by smugglers, and crashes do happen from loss of control or perhaps weight-and-balance problems. Brings a whole new meaning to 'Breaking Bad'.

Here Is The Driver Behind The European Stock Surge (Hint: Not Earnings)

Submitted by Tyler Durden on 01/22/2015 - 15:36 What is going on in Europe? Nothing short of the biggest multiple expansion episode in history. As SocGen calculated two days ago "the reported P/E multiple on Eurozone equities has risen from 11.5x to 18.7x today – a multiple expansion of over 60% in 30 months – and now stands at a premium to both the rest of Europe and RoW."  And now, with today's latest surge in the Eurostoxx, the multiple has hit what may well be a record 19x, pushing the expansion well into the 60% range over the past two and a half years, making Europe the most expensive market on a PE-multiple basis in the entire world.

 

What Reforms: Hours After ECB's QE Announcement, French Government Fails To Reach Job Creation Agreement

Submitted by Tyler Durden on 01/22/2015 - 15:11 Remember when just a few short hours ago, the ECB's Mario Draghi said that under no circumstances should the ECB's historic launch of QE be taken by anyone as a substitute for legitimate fiscal and other labor reform: as in the one thing the continent that has youth unemployment higher than 50% in various nations truly needs, instead of a Dax at record highs? Well, we are happy to report that just hours after the launch of QE, French trade unions and employer groups failed to reach agreement in a final bid to spur job creation in a moribund market by simplifying rules on worker representation in firms, the government and unions said.

 

Daniel Hannan Exposes Davos' Narcissistic Corporatist Racketeering

Submitted by Tyler Durden on 01/22/2015 - 13:46 "Davos Man... derives most of his income, directly or indirectly, from state patronage. Davos is a place where you see, in Marxist terms, is a gang of rentiers coming together to devise new means to live off the sweat of the workers... It’s like an Ayn Rand novel, where lobbyists reach cosy arrangements with each other in elliptical language."

The Euro Crashes To 12 Year Lows And Now The US Commerce Secretary Starts To Grumble About A Strong Dollar

Submitted by Tyler Durden on 01/22/2015 - 12:57 A crashing Yen failed to help Japan or fix its economy, but while Japan may now be a lost cause, the Keynesian masterminds of the world will give it another try, and following today's Draghi's announcement, the EURUSD has crashed to the lowest level since 2003, tumbling over 200 pips, and printing below 1.14 moments ago. However, in a clear indication that the party for the USD-bulls may be ending, none other than the US commerce secretary moments ago said the impact of a rising dollar on exports and economic growth bears monitoring.
 

Yemen's US-Backed Government & President Resign

Submitted by Tyler Durden on 01/22/2015 - 12:51 In the short space of an hour - following weeks of battles and a recent standoff in Sana'a with Houthi rebels - all the well-laid plans of the US manipulators has gone astray:
*YEMEN GOVERNMENT RESIGNS, PRIME MINISTER PRESENTS RESIGNATION TO PRESIDENT AMID REBEL STANDOFF
*YEMEN PRESIDENT HADI HAS RESIGNED, AIDE SAYS
This comes after signing a short-term peace deal following an admission that they had lost control. And with oil-prices plunging once again, which means social instability in the middle east is about to explode making the Arab spring of 2011 seem like child's play by comparison, things around the globe are about to take a dramatic turn for the worse.




 

Here Are The Negatives In Today's ECB QE Announcement

Submitted by Tyler Durden on 01/22/2015 - 12:23 Everyone knows the positives, or rather positive, even if nobody at the ECB is willing to come out and say it: the ECB's QE - whose structural details were laid out previously - will boost stock prices, and... that's it. Who benefits as a result of this has now become a socioeconomic and philosophical discussion. So here, courtesy of ADMISI's Marc Ostwald, are the negatives.
 

We’ve Let The Clowns Come Way Too Far

Submitted by Tyler Durden on 01/22/2015 - 11:59 If speeches like the State of The Union this week, and the reactions to it, make anything clear, it’s that the PR guys won the fight against critical thinking. All you need to do is get people to believe whatever it is you got for sale. And 99.9% of people are easily fooled. That’s how you define democracy in 2015: how many people can you fool? Which is the most convincing sleight of hand?
 

Best start to the year for silver prices since 1983

by Peter Cooper, Silver Seek:
So goes January, so goes the rest of the year. That’s what silver investors will be hoping after the best start to the year since 1983 with prices up 15 per cent. Silver has still to re-test its all-time high of $50 an ounce set back in 1980. Today the price hovers at around just $18, some 35 years later.
Silver prices move in tandem with gold and are leveraged to the upside and vice-versa. The three-year correction in precious metal prices took the silver:gold price ratio to above 70, a historically high level, leaving considerable room for silver price outperformance as the gold price moves back up.
Read More @ SilverSeek.com

Facebook Attempt to Silence Opposition: Facebook to Filter News it Deems Questionable

from Off Grid Survival:
In what I believe to be the latest attempt to silence alternative media – the media who actually takes the time to do their job, instead of regurgitating the same old government propaganda – Facebook has started a program to filter out what they claim are fake news stories. While that may sound like a worthwhile cause, how they determine what constitutes a fake news story is pretty sketchy to say the least.
Facebook is implementing a new feature that will allow users to flag stories that they believe are false. The problem with this strategy is it’s really nothing more than a way for those who oppose free speech to silence their critics. Keep in mind that most of the people receiving these so-called fake news stories in their news feeds, are people who trust those souces and have choose to follow those facebook pages.
Read More @ OffGridSurvival.com

World War III Will Begin In Syria

by Dave Hodges, The Common Sense Show:
I am under attack by elements of the state-run Russian military. I am not alone. Anyone who dares to expose Russian military preparations for World War III, is under attack as I have discovered. Some of us in the media have had their reputations inaccurately impugned, some of our sponsors contacted and threatened and these Russian government employees have been trolling on our website pretending to be casual readers who are launching vehement attacks upon anyone who says anything but “Putin is a Christian and he stands for all that is holy and good”. For the record, I loathe Obama and much of our government because they have allowed themselves to be corrupted by the bankers who have hijacked our government. However, as bad as things are in America, America is a preferable living location than the reincarnated Soviet empire under Putin. I will have much more to say on this topic in a future article. Threats from the state-owned media aside, I will not be deterred. In fact, what I am going to publish this morning will give Russian officials the proverbial chest pains before the heart attack, because this is true.
Read More @ Thecommonsenseshow.com

The Great Reset Will Hammer Final Nail In West’s Coffin

from KingWorldNews:
Stephen Leeb: “Investors are finally recognizing after what Mario Draghi said today that there are really no trustworthy fiat currencies in the world. Well, when paper currencies break down, monetary metals like gold and silver go up. That’s what we are seeing right now….
“I want to make some comments about the oil market. If we did not have the extra oil from fracking in the United States the world would be 3 million barrels short in terms of oil production. OPEC knows that oil is finite and it would be impossible for them to produce that much oil over the long-term.
Stephen Leeb Continues @ KingWorldNews.com

Head of IT Companies Monitoring Pentagon, FBI, NSA and Army Presumed Dead After Suspicious Fire

from The Daily Sheeple:
In the vein of all the suicided bankers, here’s another mysterious death connected to some pretty high places.
The 16,000 square-foot Annapolis mansion of millionaire IT executive Don Pyle, 55, went up in flames so fast on Monday, investigators believe a chemical agent must have been used. The house, dubbed “the castle” by neighbors, was fully engulfed by the time the fire department got there. It took 85 firefighters to finally put the blaze out. Pyle, his wife and four grandchildren are currently presumed dead.
Read More @ TheDailySheeple.com

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