European Central Bank Announces Quantitative Easing Program

[Gold and silver on the rise! The house of cards is coming down!]

Impact on the Global Economy

QE is now no longer a one-off experiment but is deeply engrained as a policy tool at the United States Federal Reserve, the Bank of Japan (BOJ), the Bank of England and now the European Central Bank. The concept of printing currency to solve structural economic problems has taken root at the world's central banks but not borne much fruit.

A European Central Bank QE program will probably cause the Euro to weaken against the United States Dollar.

A strengthening dollar would be deflationary and run counter to achieving the Fed'��s 2% inflation target.

http://smaulgld.com/european-central-bank-announces-quantitative-easing-program/

[Gold and silver on the rise! The house of cards is coming down!]

Won't last much longer.

someone must have rattled their Cage bad!

I'll bet Putin is laughing.

I know the Swiss are!

Iceland and the Swiss are finally getting it!

Ron Paul was right! END THE FED!

They have failed at every mandate they were inacted and impowered to perform. Number one being to ensure the stability of the economy

http://mises.org/blog/swiss-national-bank-hero-or-villain

There has been much hand wringing among popular blogger-economists in response to the breaking of the Euro peg by the SNB. Tyler Cowen, Paul Krugman, and Scott Sumner all lament the loss of "credibility" by the SNB in the wake of its sudden change of policy regime and they darkly hint at dire consequences for the Swiss economy. But the problem with central banks is not credibility, or lack thereof. The Greenspan-Bernanke Fed and other central banks surely lost all credibility over the last 20 years by unwittingly unleashing asset price inflation on the world during the "New Economy" era of late 1990s and then deliberately stoking the inflation of asset prices as a means of stimulating recovery from recessions in 2001 and then again following the financial crisis later in the decade. Indeed the effects of the Great Recession still linger on in the U.S. more than 5 years after it officially ended. This is despite the "unconventional" and extraordinarily inflationary monetary policy of the Fed that has driven the stock and bond markets to all-time highs and rekindled the housing boom.

The real danger from central banks therefore does not lie in their loss of credibility, but in their lack of accountability to the public and its elected representatives. It is precisely accountability, however, that Cowen and his fellow economics bloggers fear and loathe. Cowen contends that the SNB caved to political pressure because its bureaucrats sought to "hoard institutional capital",more plainly, to remain in political favor. According to Cowen,

Without such capital , semi-independent central banks would soon cease to exist, to the detriment of us all.

Cowen has it half right. As one advocate of sound money noted, the recent Swiss gold referendum, even though it failed, was a wake-up call for SNB bureaucrats. Where Cowen gets it wrong is in claiming that wresting the function of supplying money away from the central bank and placing it under overt political control would be "to the detriment of us all." As I have written elsewhere regarding the proposal to have the U.S Treasury take over monetary policy operations:

A common objection to such a proposal is that if money were under the control of the Treasury, monetary policy would become a political football, inflation would be rampant, the United States would founder in a sea of red ink, the dollar would tank on foreign exchange markets, blah, blah, blah. But how much more inflationary would monetary policy become than it is right now? The unelected and unaccountable bureaucrats at the Fed have fastened on the US economy a regime of zero interest rates, indefinite quantitative easing, and the insane targeting of a real variable (the unemployment rate) using nominal variables. . . . This is a reversion to stone age Keynesianism.

Regarding Sumner's claim that abolishing the price ceiling on the CHF will somehow overvalue the currency and ravage the export-dependent Swiss economy, nothing could be further from the truth. First, price controls of any kind, but especially those on currencies, misallocate resources, distort economic calculation and thus the pattern of international trade, and reduce national and global prosperity. Second, the inevitable pain that will attend the short-run adjustments of the Swiss economy to currency appreciation pales in comparison to the long-run economic destruction that would have been wreaked on the Swiss economy by inflation imported from the Euro area had the peg remained in place in the face of the massive QE program just announced by the ECB. Third the Swiss economy is extremely flexible and will be able to adjust to the appreciation of its currency. Leonid Beshidsky points out that, as the EU stagnated, Swiss exporters increased their exports to the U.S., their second largest trading partner. In November 2014, Swiss exports to the U.S. increased by 10%, the fourth consecutive double-digit monthly increase. Meanwhile exports to the EU fell by 2% in November 2014. The Swiss will also be looking to expand exports to China.

Man Who Predicted Collapse Of Euro Against Swiss Franc Makes Second Terrifying Prediction

The Saudi King dies, Yemen falls to the rebels, and Iran has a new long range ballistic missile.... all while this admin says "nothing to see here!"

The house of cards IS coming down! Hope everyone understands and has prepared in some way.... perhaps gold and silver investments?

http://kingworldnews.com/man-predicted-collapse-euro-swiss-franc-issues-second-terrifying-prediction/

50,000 Wall Street jobs cut

.....Wall Street's biggest banks have slashed nearly 50,000 jobs and bonuses
.....Included are Bank of America, Citigroup, JPMorgan and even Goldman Sachs
.....Cuts, announced last week, come as profits opportunities have dried up

It is home to the world's largest stock exchange.

But now, Wall Street in New York has seen nearly 50,000 jobs

In a move that has shocked many pundits, a number of banks including Bank of America, Citigroup and JPMorgan have cut thousands of jobs, as well as bonuses and expenses money

The changes, announced last week, come as profits opportunities have dried up

Read more at http://nypost.com/2015/01/17/50000-wall-street-jobs-cut/?utm_campaign=SocialFlow&utm_source=NYPTwitter&utm_medium=SocialFlow