'We are reaching the end game in Europe'

[boarderbloke]

From the Telegraph, 'We are reaching the end game in Europe. If they don’t launch real QE soon, the consequences are too awful to contemplate,' warns RBS

<a href="http://www.telegraph.co.uk/finance/economics/11154553/Dam-breaks-in-Europe-as-deflation-fears-wash-over-ECB-rhetoric.html"target=blank>Dam breaks in Europe as deflation fears wash over ECB rhetoric</a>

[boarderbloke]

[URL="http://www.reuters.com/article/2014/10/10/banks-regulations-collapse-idUSL2N0S52LK20141010"]U.S. and UK to test big bank collapse in joint model run[/URL]

[ajl]

They have hit the end game in Europe and QE will only make the problems worse. Coming to Canada soon. With lower energy prices the Canadian economy is toast as well.

[cottonpicken]

They have no choice they have to recap the banks visa ve qe.

We cant take the medicine or it will kill us.

There is no way out.

When this all over alot of people are going to loose alot of money.

God i hope i'm wrong.

[farmaholic]

Cotton, how have you managed your assets to help mitigate some of the risk. You have any mutual funds or cash deposits? Or are you talking overall severe deflation of all assets; paper, stocks, cash, land , metals?

[grassfarmer]

So what do you think of this comment?

"Deflation actually increases the value of the frugals savings. Governments hate deflation as it allows the debts to be repaid with stronger dollars. They need inflation to hurt the saver."

[rockpile]

I certainly don't have the smarts nor the broad base of knowledge and experience in the field of economic theory to even understand what is going on or much less predict what will happen next. I do think there is a huge shift happening globally in what had been the status-quo for the last 60 years. In the developed world, the rich are getting richer, the poor are getting poorer and the middle class is treading water. Meanwhile, in the developing world, the rich are getting richer, the middle class is getting bigger, and the poor are still poor. But sitting here in the catbird seat I'm reminded of some advice given to me a long time ago and it goes like this:
If you and a pal are hiking in the mountains and you encounter an angry charging grizzly bear, remember, you don't have to outrun the bear - just your pal.

Happy thanksgiving everyone!

[fjlip]

Or stay one step ahead of the "bear/economic crash", and all appears to be just fine. That seems to be the plan, put off the consequences of an INSANE banking system, created by the 1% very very rich calling the shots, including dictating to world governments.

[Klause]

This is part of what I was alluding to in my earlier post

[errolanderson]

Bad close on Friday . . . .

Is the next Black Monday, Oct 13th, 2014?

[samhill]

I understand that increasing the money supply and keeping interest rates way below the rate of inflation really hurts people who save and also those on fixed incomes. However, if there is 4 billion more people than 30 years ago, there needs to be more paper money, or there isn't enough to go around.
Must be an equilibrium somewhere.

[errolanderson]

samhill . . . if you are talking governments printing money globally to get out of this problem, ain't gonna work.

This could potentially trigger a currency war, like that of the 1930's. That the outcome wasn't so great.

this market is the 'ghost of inflation's past' . . . .

[ado089]

The EU will be forced to undertake some sort of major QE. It stands to reason a good place to park capital is in one of the beat up European equity markets. They should see the same stock market inflation the US had with QE.

[ColevilleH2S]

Ado, the issue I see with that is they'd have to convert that capital to € to make the investment. If the EU prints like mad, come cashout time your investment would be converted out of € which are now worth less. Or so the theory goes.

[farmaholic]

Like Chermeny, where everyting is goot yaw?