ECB Plan Said To Pledge Unlimited, Sterilized Bond-Buying

September 5, 2012 By 5 Comments

Both the Fed and the ECB are now openly discussing open-ended (UNLIMITED) QUANTITATIVE EASING.

Do you recall reading here that QE will continue TO INFINITY….AND BEYOND!!!  ?

A globally coordinated and unlimited QE announcement by the Western Central Banks appears imminent, and will send gold and silver exploding out of their range trade/consolidations to new all-time nominal highs.

 

European Central Bank President Mario Draghi’s bond-buying proposal involves unlimited purchases of government debt that will be sterilized to assuage concerns about printing money, two central bank officials briefed on the plan said.

Under the blueprint, which may be called “Monetary Outright Transactions,” the ECB would refrain from setting a public cap on yields, according to the people, and a third official, who spoke on condition of anonymity. The plan will only focus on government bonds rather than a broader range of assets and will target short-dated maturities of up to about three years, two of the people said.

The euro jumped half a cent on the report and traded at $1.2611 at 5:40 p.m. in Frankfurt. European stocks advanced. An ECB spokesman referred to an Aug. 20 statement in which the Frankfurt-based central bank said it was misleading to report on decisions that haven’t been taken yet.

Draghi told the European Parliament this week that the ECB needs to intervene in bond markets to wrest back control of interest rates in the fragmented euro-area economy and ensure the survival of the common currency. Policy makers are deliberating on the plan today and Draghi will announce whether it has been agreed to at a press conference tomorrow.

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Comments

  1. Avatar of CactusAttackedUs CactusAttackedUs says:
    September 5, 2012 at 3:03 PM

    Haha.  Oh man!  That’s going to be like jumping off a cliff and then planning to flap your arms so you don’t fall and splatter into a thousand pieces. 
    This should be interesting … and sucky.
     

  2. Avatar of AGXIIK AGXIIK says:
    September 5, 2012 at 3:54 PM

    This sounds like a recipe for self destruction of the ECB.  When I hear the word ‘sterilization’ applied in any manner the word vasectomy pops out.  Draghi may lose a important part of his anatomy.

  3. Avatar of Syphax Syphax says:
    September 5, 2012 at 6:28 PM

    What exactly do they mean when they say “sterilized “?

    • Avatar of RocketsRedGlare RocketsRedGlare says:
      September 6, 2012 at 6:49 AM

      I’m not sure but, it suggests stopping the spread of financial infection. It’s funny in a way because the central banks are the financial parasites sucking the life out of nations! Leaving behind the infirmed body of humanity ripe for infection!

  4. Avatar of Sumkid Sumkid says:
    September 6, 2012 at 7:18 AM

    …and then QE will stop so that this stage will begin.


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