ECB fires up the printing presses again.

[sasguru]

Draghi $158B Free Lunch Boosts Bank Profits - Bloomberg

[AtW]

That's not money printing.

"Banks are required under rules approved by the Basel Committee on Banking Supervision to hold capital against any assets they pledge as collateral in exchange for the ECB loans, pushing the cost of participating above 1 percent, Guy Mandy, a London-based Nomura Holdings Inc. analyst, said in a Jan. 24 note. Assets are subject to so-called haircuts depending on how risky they’re perceived to be. That affects how much cash lenders will receive against the value of the assets. "

If banks were printing their own bonds used as collateral that they never expected to buy back then it would be money printing - that's what UK and US Govts do.

[ThomasSoerensen]

Could be interesting to get a tally of the amounts printed by the Fed, BoE and ECB.
Perhaps divide it by GDP or per capita in order to compare.

[AtW]

Perhaps divide it by GDP or per capita in order to compare.

It should be around $1 mln USD per head of half a gramm of gold.

[sasguru]

That's not money printing.

".

See my link here ...
http://forums.contractoruk.com/gener...-into-sky.html

[sasguru]

And listen to what this guy has to say:

Felix Zulauf Interview | FINANCIAL SENSE

If the ECB has expanded its balance sheet by £1 trillion in the last year, I guess you can call that money printing.

[AtW]

If the ECB has expanded its balance sheet by £1 trillion in the last year, I guess you can call that money printing.

GBP has got no benefit of being a reserve currency when money are printed, it also got no backup from exports like Japan when Yen got printed.

This means that US, EU and Japan can get away with far more of this tulip than UK.

[sasguru]

GBP has got no benefit of being a reserve currency when money are printed, it also got no backup from exports like Japan when Yen got printed.

This means that US, EU and Japan can get away with far more of this tulip than UK.

I don't think anyone can "get away with it". The piper will have to paid. But I think not printing money would lead to depression.

PS The UK exports more per capita than Japan. HTH

[BrilloPad]

I don't think anyone can "get away with it". The piper will have to paid. But I think not printing money would lead to depression.

Certainly not printing money would cause depression soon. But one day there will be inflation. And that will bring about its own issues.

[sasguru]

Depends how much inflation. Inflation is better than depression. 70s were better than the 30s.
But hyperinflation would be an issue.