Tuesday, September 9, 2014

ECB monetary policy has become more expansionary

Make no mistake about it: the ECB has become expansionary and this is but the first step in its doing so.

Just as few, other than we, thought that the Fed would have QE 2 and QE 3 following the first round of QE, we suspect that few will argue that this first round of QE on the part of the ECB shall result in larger and more such operations in the future, but we do and we are.

That is what is important to understand here beyond minutia: this is the first shot across the monetary bow in Europe by the ECB and it shall not be the last.

Remember this statement in the days, weeks, months and perhaps even the years ahead. The ECB has, in the most common language, lost its monetary virginity and once lost it cannot ever be regained.


via http://www.zerohedge.com/news/2014-09-05/dennis-gartman-short-power-control-terms