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5 Key Takeaways From The ECJ’s Kinda Sorta ‘Thumbs Up’ To Draghi
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / by Tyler Durden / 01/14/2015 11:00
Via Dow Jones,
An adviser to the Luxembourg-based European Court of Justice (ECJ) has delivered a tentative thumbs-up to an ECB bond plan unveiled in September 2012 that was aimed at countering euro break-up fears.
The nonbinding ruling has garnered a lot of attention in financial markets, even though the program under review, called Outright Monetary Transactions, hasn’t been used. Its mere presence was enough to convince investors that the euro was here to stay, and sparked a lasting rally in Spanish and Italian bond markets.
Still, Wednesday’s ruling had implications for a separate government bond purchase plan that the ECB is widely expected to announce at its Jan. 22 meeting. That program, known as quantitative easing, would be aimed at raising the money supply and lifting inflation toward the ECB’s 2% target. Unlike OMT, it would certainly be used.
With consumer prices down on an annual basis in December for the first time in over five years, financial markets consider QE to be a given, and the court’s decision appears to give the ECB wide leeway in designing a program.
The post 5 Key Takeaways From The ECJ’s Kinda Sorta ‘Thumbs Up’ To Draghi appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2015/01/14/5-key-takeaways-from-the-ecjs-kinda-sorta-thumbs-up-to-draghi-2/
