The US economy is on its way to stagflation. Inflation rates are rising, economic growth is slowing significantly in the first quarter to just 1.6%. As a result, the bond market is selling off and interest rates are rising. This also poses a problem for the ECB, which is trying to defend the interest rate spread against the euro to stem the flight of capital. Now Christine lagard is being asked to intervene massively in the US bond market
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42 sats \ 0 replies \ @Cje95 25 Apr
I don’t think many people understand just how bad this is… while yeah the economy grew like you said bonds are tanking interest rates are going up and that puts more pressure on the general public. The Feds have their hands tied because inflation is stuck at 3% and just like how Chinese manufacturing data impacts the rest of the world US economic health does the same!
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42 sats \ 2 replies \ @BlokchainB 25 Apr
Rumblings of a recession bubbling back up?
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50 sats \ 0 replies \ @TomK OP 25 Apr
Can you imagine the panic in the eurozone when they bring Count Dragila back into play?
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42 sats \ 0 replies \ @Cje95 25 Apr
In the U.S. at least I’ve seen growing talks of one if not two more rate INCREASES… just two months ago everyone was trying to decide if we would get 5 rate cuts this year or not and now we are talking about possible increases… it’s wild
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42 sats \ 6 replies \ @jp305 25 Apr
What are the options for the ECB? Isn’t that the problem for Canada?
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8 sats \ 0 replies \ @TomK OP 25 Apr
I doubt very much whether the ECB still has any options. the clamor for the return of Mario Draghi is no coincidence! they have to decide whether to save their currency or the state finances by buying more and more bonds. the same basically applies to Canada. both are actually trapped. They are dying fiat currencies
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0 sats \ 4 replies \ @Cje95 25 Apr
ECB did just cut rates if I am remembering correctly so they could if necessary undo them.
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0 sats \ 3 replies \ @TomK OP 25 Apr
When? Today?
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42 sats \ 2 replies \ @Cje95 25 Apr
I want to say their last meeting… let me check!
I was wrong it was just a group of the 12 that wanted immediate cuts! Switzerland was the country who did do cuts that I might have mixed up with
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0 sats \ 1 reply \ @TomK OP 25 Apr
No. Last they just fu..ed around
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42 sats \ 0 replies \ @Cje95 25 Apr
Yeah based on my quick read over we had Switzerland cut rates while Japan increased them (taking them out of negative territory for the first time in forever), Nigeria, Turkey, and Malaysia (increased theirs yesterday) hiking rates. I'd assume at least in the US we are going to get a 25-basis point hike before we get our first cut... and our cut is likely to just be cutting that single hike
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0 sats \ 0 replies \ @TomK OP 25 Apr
I doubt very much whether the ECB still has any options. the clamor for the return of Mario Draghi is no coincidence! they have to decide whether to save their currency or the state finances by buying more and more bonds. the same basically applies to Canada. both are actually trapped. They are dying fiat currencies
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