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ECB Maintains Interest Rates Amid Economic Uncertainty
549 sats \ 25 comments \ @TomK 18 Jul econ
The European Central Bank (ECB) has decided to keep interest rates steady across the Eurozone. The main interest rate remains at 4.25%, and the deposit rate, the rate banks earn on parked funds, holds at 3.75%.
Despite the Eurozone's recession pressures, the ECB opted not to lower rates, largely due to the U.S. Federal Reserve's policy of maintaining higher rates despite a weakening job market. The ECB aims to prevent a widening rate gap between the Eurozone and the U.S., which could trigger capital flight.
To counter this, the ECB, in collaboration with partner central banks, will continue substantial purchases of U.S. Treasury bonds to prevent U.S. rates from rising too high and attracting capital away from Europe.
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77 sats \ 1 reply \ @BitcoinAbhi 18 Jul
I was thinking that this time ECB will lower the interest rates and provide some relief. But it's like 2 sided sword for ECB now!
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0 sats \ 0 replies \ @TomK OP 18 Jul
they already have to keep correcting the widening interest rate spread between US government bonds and especially those of Germany through their own purchases of US government bonds. if they now lower interest rates before the United States moves, the problem will worsen and the euro will lose value faster and faster. this implies a serious currency crisis which will then lead to a sovereign debt banking crisis. that's what it's all about a la long anyway
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58 sats \ 1 reply \ @Undisciplined 18 Jul
How long until dollarization?
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55 sats \ 0 replies \ @TomK OP 18 Jul
Before that, we'll return to our national currencies. I'm already looking forward to the Deutschmark and here in Spain to the digital peso.
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56 sats \ 9 replies \ @Coinsreporter 18 Jul
The ECB is looking like a slave of Fed. If Fed never drops interest rates, will ECB keep on with it? I'm stating to doubt that ECB/EU was formed as an associate to US.
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11 sats \ 8 replies \ @TomK OP 18 Jul
monetary policy in europe is completely dependent on that of the united states. the so-called euro-dollar market, i.e. loans that are granted outside the united states in nominated dollars, are currently pretty much the only thing keeping the european union alive. the euro continues to lose importance in the international settlement ranking. If they continue to lower interest rates, and they have to in view of the fact that the self-created zombie economy cannot refinance the high rates, i.e. relatively high rates, in the lending business, then capital will of course be withdrawn from the eurozone even faster than is already the case. what they are doing here is systematically drying up this so-called euro dollar market and thus regaining their own sovereignty over monetary policy.
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112 sats \ 7 replies \ @IamSINGLE 18 Jul
They should've adopted dollar as their currency!
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101 sats \ 0 replies \ @Coinsreporter 18 Jul
Haha! What a remark! Surely, they must have if they are so compelled by US!
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24 sats \ 4 replies \ @TomK OP 18 Jul
We will all see a return to the national currencies of the past.
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56 sats \ 1 reply \ @IamSINGLE 18 Jul
I think EU will burn itself and then will again rise the same old model of different currency.
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24 sats \ 0 replies \ @TomK OP 18 Jul
Yes
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56 sats \ 1 reply \ @Coinsreporter 18 Jul
All countries must be thinking that the Brexit was a good move by UK! May be one or two are planning their exit from EU/ECB.
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24 sats \ 0 replies \ @TomK OP 18 Jul
The next sovereign debt crisis will show how far solidarity among Europeans will go, whether German pensioners should really finance the labor market in Portugal or whether, for example, a completely overvalued currency will continue to destroy Greece's exports.
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13 sats \ 0 replies \ @TomK OP 18 Jul
We will all see a return to the national currencies of the past.
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45 sats \ 6 replies \ @Satosora 19 Jul
I feel like this is a zero sum game. They wont really win by purchasing treasury bonds, they are just delaying the inevitable.
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33 sats \ 5 replies \ @TomK OP 19 Jul
of course, the manipulation of the interest rate spread is nothing more than another market manipulation that will have to blow apart at some point, and it is only natural to consider that the Americans are on the verge of a regulatory turnaround due to the election of Donald Trump, which will attract so much capital that here in the eurozone the store will clearly fly apart, and that is what they are most afraid of, which is why they talk about it all the time in political circles, hence all the hatred of Donald Trump
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45 sats \ 4 replies \ @Satosora 19 Jul
Yes, he will cause chaos.
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33 sats \ 3 replies \ @TomK OP 19 Jul
it is so urgently necessary that pressure is exerted on the european union from outside to implement market economy reforms and to dispose of the political caste. what we experienced yesterday, that Ursula von der Leyen is first held guilty by the court because of the corruption affair surrounding Pfizer defendants and then immediately afterwards elected Commission President in a backroom deal, is all unacceptable. this parasite card has nothing else in mind than to implement a sick ideology and to enrich itself.
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45 sats \ 2 replies \ @Satosora 19 Jul
Did he actually get elected? I thought that was a joke...
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33 sats \ 1 reply \ @TomK OP 19 Jul
the left and green groups in the european parliament discussed this election in a backroom deal beforehand. it's all fake, a simulation, a matrix of shit
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45 sats \ 0 replies \ @Satosora 19 Jul
It has to be. No one would want someone so blatantly crooked in office.
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45 sats \ 1 reply \ @02bcd3eeb0 18 Jul
Insane that banks get free money for their reserves, pure corruption.
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13 sats \ 0 replies \ @TomK OP 18 Jul
Fiat Clown World formed the most interestinf and brutal matrix ever
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45 sats \ 1 reply \ @0xbitcoiner 18 Jul
These are highly risky strategies that may backfire. I'm uncertain if it's a sound strategy, only time will reveal that.
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45 sats \ 0 replies \ @TomK OP 18 Jul
the eurozone is far beyond the point of no return in terms of fiat debasement. right now, when the recession is at its beginning, the states are already running extreme deficits again, which can only be stopped by the fiat money press. the debasement of money is implicit and it must accelerate if you argue within the logic of this fiat system. i don't see how monetary policy reforms could be carried out within the existing set of rules that could stabilize the euro again and make it an anchor of value, for example by depositing it with bitcoin or gold. These officials are miles away from that, they live in a completely different world
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