Tag Archives: Mario Draghi

Inflation poses no problems in the Eurozone

28 Feb

Ben Bernanke clarified his position as a response to the insistence of some Congressman (mostly Republicans): a strategy for normalizing monetary policy (printing press is not exactly the usual procedure) is not in the eyes of officials. Furthermore, when it will be decide to raise interest rates or extract liquidity, the announcement will be made in advance. ECB President Mario Draghi did not want to create a dissonance, and in a speech on Wednesday said that there is no rush to withdraw monetary stimulus. One of the arguments the low inflation rate which is gonna fall below target is supported by recent data: Eurozone consumer prices rose 2% in the last year, and without food and energy, alcohol and tobacco, their level is about  1.3% higher.

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Economic look

11 Feb

imagesRisk trends collapsed in 2000 and 2007 although the foundations were perceived as excellent, with economic growth (speculative) in the U.S. and Europe. Current trend is not a creation of wealth  (everybody get a loan) or expectations in this regard but the creation of  coordinated central bank interventions. Creation of paper money out of thin air led this to historically low interest rate levels forcing investors to protect themselves from negative real interest rates and seek higher returns in safety and risk assets (stocks, commodities, currencies like NZD, EUR, GBP, CAD which tend to appreciate in periods of optimism, against  USD, JPY, CHF, which is appreciated in times of panic). Continue reading

European Central Bank President Mario Draghi said on Friday that:

30 Nov
  • recession is still on te table (we have not left the recession)speach Mario Draghi
  • latest forecasts show that European economic recovery will begin in the second half of 2013.
  • he remained positive that Greece will remain in the Eurozone.
  • we are ready for a new intervention to maintain stability in the euro area.
  • it’s time for further efforts to strengthen the euro area.
  • the euro area needs to be strengthened across all 17 member states.
  • banking supervision should be applied to all banks.
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