The Death of the Euro

At last year’s WEC, we warned that the collapse of the euro was underway. We achieved the Yearly Bearish Reversal on the close of 2015, but we did so far below the number. We had been waiting for the rally to retest the 11600 level, which we finally achieved. The ECB monetary policy has been typical banker nonsense and has brought Europe closer to a major financial crash. Draghi has applied the unsupported quantity of money theory and assumes he will simply buy in the debt and the cash will miraculously be spent wildly by consumers. Trading volumes and the velocity of money have been falling in general since 1996-1998. The low to negative interest rate policy of the ECB has endangered pensions and ailing banks, and this is just now beginning to push pensions and banks over the edge. Draghai will not admit he is wrong, so he will blame everyone other than himself. Continue reading

How Many More “Saves” Are Left in the Central Bank Bazookas?

The master narrative of the global economy shifted six years ago from “China will push global growth for decades to come” to “the central banks can push global growth for decades to come.”

Time after time we’ve witnessed enfeebled global markets jolted out of terminal declines by central bank pronouncements and new money-printing policies. Never mind that the European Central Bank’s (ECB) Mario Draghi had no concrete proposals in hand when he announced the ECB would “do whatever it takes” to save the European Union from the financial consequences of its reckless abandonment of risk management; the mere announcement was enough to trigger a massive reversal in global markets. Continue reading