The European Central Bank's (EZB) council made its interest rate decision with a solid majority, though not unanimously, according to President Lagarde. She noted that some members preferred a pause. The council has decided to raise its benchmark rates by 25 basis points and indicated no further hikes, given current conditions. Decisions remain dependent on inflation outlook and other economic data... blablabla... they're done. Now the fight is heating up: do they defend the Euro or yield spreads.
25 sats \ 1 reply \ @TheBTCManual 15 Sep 2023
Whats your take on all this so-called EU trade war stuff going on with China?
https://www.dailymaverick.co.za/article/2023-09-14-did-europe-just-start-a-trade-war-with-china-over-electric-cars/
reply
110 sats \ 0 replies \ @TomK OP 15 Sep 2023
The problem is that the EU is divided concerning chinese trade policy. Italy now changed the camp and voted for opting out of the new silk road participation. Germany is losing a growing part of it's export market share within the EU and sees itself being replaced by chinese competitors. So the sentiment is switching hostile towards China but still there is a lot of funding by the CCP if You think of Greece for example. I guess it will become worse.
reply
11 sats \ 1 reply \ @OC 15 Sep 2023
Done raising rates but only just beginning destroying the currency
reply
11 sats \ 0 replies \ @TomK OP 15 Sep 2023
... by funding the growing state deficits. Who in his right mind would be buying Eurozone bonds?? The Euro is a zombie, walking around by manipulating the yields...
reply
0 sats \ 1 reply \ @quark 15 Sep 2023
Today they have said there is a possibility to hike again in December.
Market doesn't like confusing messages. Euro is in big trouble anyway.
reply
0 sats \ 0 replies \ @TomK OP 15 Sep 2023
December is a long way to go. In fiat terms it's nearly eternity and inflation could come down fast as the consumer has been hit hard.
reply
0 sats \ 4 replies \ @siggy47 15 Sep 2023
Tom, did you see this article?:
https://www.politico.eu/article/christine-lagarde-profile-european-central-bank/
I know it's from a U.S. left wing publication, but does accurately state her position?
reply
392 sats \ 2 replies \ @TomK OP 15 Sep 2023
Well, to me the article is hiding one eminent message that Lagarde is communicating indirectly: she is clearly referring at the USD being under threat by the BRICs and their not even installed own trading mechanism or coin. She knows that the Euro is doomed the moment capital markets will be closing the yield gap between Germany and the US. Therefore they are constantly spreading USD Fud all around the world and the media. That's how I read this. The USD (FED) is winning.
reply
0 sats \ 1 reply \ @siggy47 15 Sep 2023
Interesting perspective. Do you agree that it's only a matter of time before both currencies are doomed, or do you see the dollar surviving in the medium term?
reply
21 sats \ 0 replies \ @TomK OP 15 Sep 2023
I do not see a better Fiat currency than the USD. The moment the states find their path back to free market capitalism they will be accelerating capital import, maybe draw back military activities to stabilize their fiscal position. Meanwhile the Eurozone.... You already know.... it's really a mess
reply
20 sats \ 0 replies \ @TomK OP 15 Sep 2023
Hola, I'm going to check it.
reply