Business Magazine

Tuesday: Euro Drops 1.5% as ECB Promises MORE FREE MONEY!!!

Posted on the 19 May 2015 by Phil's Stock World @philstockworld

Embedded image permalinkBad news is great news!  

The Greek talks have stalled, England's CPI is deflating, German GDP slipped to 0.3% in Q1 and German Investor Sentiment (ZEW) dove to a 5-month low, dropping over 20% in one month to 41.9.  That and collapsing bond prices were the last straw for the ECB, who announced this morning they would "front-load" their $75Bn monthly bond-buying into May and June, to avoid having to bother over the holidays.   

This is a fun way the ECB can double up on stimulus without SAYING they are doubling up on stimulus:

“Even though this is just front-loading, it is effectively an increase in the size of quantitative easing, even if just for a short period of time,” said Simon Derrick, a currency strategist at BNY Mellon.  “It shows that within the existing framework, the ECB is willing and able to be incredibly flexible,” Mr. Derrick said.

Tuesday:  Euro Drops 1.5% as ECB Promises MORE FREE MONEY!!!Separately on Tuesday, Christian Noyer, the head of France’s central bank and a member of the ECB governing council, said the ECB was ready to go further if needed to meet its inflation target.  “The purchase program will continue until the end of September 2016 and beyond if we do not see a sustained adjustment in the path of inflation,” he said.  

Does anyone besides me think it's strange to announce more QE WHILE the markets are making record highs?  Anyone???  

Tuesday:  Euro Drops 1.5% as ECB Promises MORE FREE MONEY!!!We have indeed fully embraced the worst kind of Voodoo Economics, with the World's Central Banks creating endless supplies of money out of thin air by simply writing checks to buy bonds which enable the Sovereign nations to go endlessly into debt.  There have been, so far, no consequences for this behavior and even countries like Greece, who have no possibility whatsoever of being able to pay off their debts, are lent more and more money.

As you can see from the chart, household debt and Government debt have climbed substantially in the past few years and Corporate debt is on the rise as well with Trillions of Dollars in additional debt accounting for about 250% of our GDP growth over the past 7 years.  That's in-line with our over 300% Debt to GDP ratio and you can, indeed live high on the hog while maxing out your credit cards – it's one big party as long as you can keep making those minimum payments (and as long as they keep expanding your credit line).  

That's what we're doing folks, we (the entire Planet Earth) are going further and further into debt and our Banker, the Central Banksters, are very happy to keep lending us money.  Not only that, but they are lending it to us at the "teaser" rates of 2% or less, which makes those debts seem like a no-brainer, don't they?  Every week it's like getting another credit card offer in the mail when another Central Bank says they will increase or extend their QE offers – if you act now!  

Meanwhile, the Fundamentals remain in free-fall:

Tuesday:  Euro Drops 1.5% as ECB Promises MORE FREE MONEY!!!

SPY DAILYIf this doesn't bother you (how can this not bother you?), then go ahead and buy equities.  We came up with a lovely play on the S&P ETF (SPY) in yesterday morning's Live Member Chat Room which will double your money if the S&P climbs 50% higher, to 3,000 by Jan, 2017.  We put that trade up at 10:28 and sent it out as a Top Trade Alert and already it's up $7,950, as we had a good first day - I'll review it today in our Live Trading Webinar (1pm, EST).   

As I mentioned last week, we got a bit too bearish in our agnostic Short-Term Portfolio so we looked to add more longs to our bullish Long-Term Portfolio to balance things out.  It's a very sensible way to play the markets!  If the Central Banksters are going to insist on pouring money onto us, we'll stand outside with buckets and collect the cash.  The difference is we're quick to convert our ill-gotten gains back to cash because we KNOW they are ill-gotten and we KNOW there will, one day, be a hell of bill to pay.

Last Wednesday I told you:

By next week, at least 80% of those remaining 210,617 FAKE June orders will be rolled along to fake the next month – all in order to create a false sense of demand to drive up the prices you pay for energy – sucker!  That's right, you are a sucker.  You are a sucker because you don't get mad about this, you don't take action and you keep electing people who are in the pockets of the oil companies and let this happen.  

Here's what the NYMEX strip looks like as of yesterday's close:

Click for
Chart Current Session Prior Day Opt's

Open High Low Last Time Set Chg Vol Set Op Int

Jun'15 59.54 59.63 58.64 58.65 08:30
May 19


-0.78 3680 59.43 31705 Call Put

Jul'15 60.32 60.42 59.40 59.41 08:30
May 19


-0.83 48791 60.24 445177 Call Put

Aug'15 60.66 60.81 59.83 59.83 08:30
May 19


-0.81 4715 60.64 121214 Call Put

Sep'15 60.99 61.08 60.12 60.12 08:30
May 19


-0.79 3213 60.91 159836 Call Put

Oct'15 61.26 61.30 60.42 60.42 08:30
May 19


-0.76 1855 61.18 79218 Call Put

Nov'15 61.68 61.68 60.78 60.78 08:30
May 19


-0.73 1321 61.51 52018 Call Put

Dec'15 61.95 62.01 61.15 61.15 08:30
May 19


-0.71 4925 61.86 214944 Call Put

Jan'16 62.22 62.22 61.54 61.54 08:30
May 19


-0.64 1233 62.18 58193 Call Put

As you can see, 178,912 contracts (84.9%), representing 178,912,000 barrels of oil that were scheduled to be delivered to the United States, have been CANCELLED for June delivery.  This helps to create an artificial shortage of oil that drives the price you pay at the pump higher than it should be.  At the same time, 445 Million barrels of fake, Fake, FAKE!!! orders have been created in July, also to drive up the prices by creating a false sense of demand.  This money is being stolen from you – WAKE THE F*CK UP AND GET ANGRY ABOUT THIS!!!

I'm showing you this scam, I'm telling you how you are being ripped off (about $1,500 per person per year in higher gasoline and utility prices) and I'm telling you how to contact your Congressman to complain about it.  Feel free to send these posts or use your own words but please – DO SOMETHING!!!  

Meanwhile, we're happy to make our money off the scammers.  Those June oil Futures we suggested you short at $61.50 (/CLM5) last Wednesday are failing $58.50 this morning for a gain of $3,000 per contract while (JO), the Coffee ETF we suggested you go long on at $22.25 is now $24.69 – up a quick 10.9% for the week (you're welcome).  

From a trading standpoint, we don't care IF a game is rigged as long as we know HOW the game is rigged and are able to play along but, from a moral standpoint – we're outraged!  

Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • I Still Managed To Shop These In Mauritius!

    Still Managed Shop These Mauritius!

    Travelling to Mauritius? Thinking of what you should buy? Here is a list that SSU contributor Sakshi bought and she has some honest take on Mauritius markets.... Read more

    The 22 April 2018 by   Shoppingaholic
  • Food Review: Katz’s Delicatessen, New York City

    Katz’s katzenjammer sandwich Katz’s deli in the lower East side of New York comes recommended by most guidebooks and travel websites, and someone we know said... Read more

    The 22 April 2018 by   Emma
  • Healthy Lunch Salad!

    Healthy Lunch Salad!

    Yesterday, I invented this lovely healthy lunch or dinner. I even eat it like breakfast this morning! So good, So yummy! You can eat it just like this but I wil... Read more

    The 22 April 2018 by   Sophies Foodie
  • Skincare Empties #8

    Skincare Empties

    Hi All,According to the Instagram polls am posting an empties post first. I am so into powder cleansers that I ended up using two of them both are my favorites. Read more

    The 22 April 2018 by   Skincarevilla
  • The Most Important Mission Of The Modern Mormon Church

    Most Important Mission Modern Mormon Church

    Previously: A Plea Unto Every Latter-day Saint On the shelf directly behind me is a hefty Dictionary of Early Christian Beliefs, which I like to browse now and... Read more

    The 22 April 2018 by   Rockwaterman
  • 6 Ways To Be A Business Leader As Well As A Developer

    Ways Business Leader Well Developer

    Almost every entrepreneur starts their journey by developing a solution, based on their idea of a new technology or required service. These idea and developer... Read more

    The 22 April 2018 by   Martin Zwilling
  • Salone 2018 & Milan - Impressions

    Salone 2018 Milan Impressions

    A glimpse to the atmosphere and my impressions. Central Station Milan Beautiful details Along with the centuries old architectural beauties it is also the... Read more

    The 22 April 2018 by   Trendoffice

Paperblog Hot Topics