European Central Bank Hints at QE Program Early Next Year

European Central Bank Discusses its own Quantitative Easing Program

Will the ECB do QE?

ECB President Mario Draghi hints at asset purchases early next year

Buy Gold Online

How To Buy Gold

Fractional American Gold Eagles in 1/10, 1/4 and 1/2 oz Sizes for Smaller Budgets

JM Bullion

How to Buy Silver

2014 American Silver Eagles Still Available

The European Central Bank Set to Start its own Quantitative Easing Program?

Quantitative may soon go transcontiental, reaching continental Europe early next year. Just as the United States winds down its six year $4 trillion quantitative easing program, Europe is perhaps set to start its own. With a struggling European economy, President of the European Central Bank (ECB) Mario Draghi announced today to that the ECB is considering its own asset buying program perhaps starting “early next year”.

When pressed by a reporter what “early next year” meant, Mr. Draghi was elusive and refused to say whether it meant at the first ECB meeting of 2015 or later. In Fed speak, we will probably have to wait a “considerable period of time” to find out what “early next year” means.

ECB Says No to Gold Purchases

Earlier this month the ECB hinted at perhaps buying gold and other assets as part of any proposed European QE program. At today’s press conference a reporter asked Mr. Draghi what assets were under consideration for the ECB to buy. Mr. Draghi responded “all assets but gold“. Theoretically (but more than unlikely) that leaves silver and bitcoin on the table to be considered for purchase by the ECB as part of their QE program early next year.

Impact of QE on the Global Economy

QE is now no longer a one-off experiment but is deeply engrained as a policy tool at the United States Federal Reserve, the Bank of Japan (BOJ), the Bank of England and coming soon to the European Central Bank. The concept of printing currency to solve structural economic problems has taken root at the world’s central banks but has not borne much fruit.

A European Central Bank printing Euros out of thin air to buy assets will weaken the Euro and cause the Swiss National Bank to print Francs to support the 1.2:1 (the Swiss may regret their failure to adopt the Save our Swiss Gold referendum earlier this week that would have prevented such Franc printing).

A European Central Bank QE program will also cause the Euro to weaken against the United States Dollar.

A strengthening dollar would be deflationary and run counter to achieving the Fed’s 2% inflation target.

Since the ECB has delayed its own QE program for now, the Euro is rising and the dollar falling. A too early start to ECB QE would have meant a too strong dollar too soon.

If the ECB starts QE early next year, it won’t be long before the dollar strengthens again causing the Fed to reverse its recent projections that an interest rate hike is coming in 2015 and announce that the Fed is joining its central bank brethern in a massive global currency printing festival as it launches QE4.

Get Free Updates From

Subscribe to and get the free In Case You Missed Itweekly email as well as updates and analysis on gold, silver, real estate and the economy.

Also get the free report “Twelve Key Differences Between Gold and Silver” when you subscribe.

Further Reading:

European Central Bank May Buy Gold

Mario Draghi’s press conference

The Danger of Artificially Low Interest Rates

Janet Yellen and Negative Interest Rates

Janet Yellen and The Precious Printing Press

Bank Bail-Ins Coming to the U.S.

Royal Canadian Mint

Please visit the Smaulgld Store for a larger selection of recommended Kindles, books, music, movies and other items.

Or you can support by making all your Amazon purchases through the search widget below and by ordering your gold and silver by clicking on the JM Bullion, BGASC, Golden Eagle Coins, Perth and Royal Canadian Mint ads on the site.

Buy American Gold Buffalo Coins

*DISCLOSURE: Smaulgld provides the content on this site free of charge. If you purchase items though the links on this site, Smaulgld LLC. will be paid a commission. The prices charged are the same as they would be if you were to visit the sites directly. Please do your own research regarding the suitability of making purchases from the merchants featured on this site.

Chart Disclaimer: Information presented here has been obtained from a third party and is presented for information purposes only. Smaulgld can not and does not guarantee the accuracy or timeliness of the data displayed on this site and therefor the data provided should not be used to make actual investment decisions. You should always consult a professional investment adviser before investing in precious metals or any type of investment. You acknowledge that Smaulgld assumes no responsibility for the integrity of data on this site.

The content provided here is for informational purposes only. Making investment decisions based on information published by Smaulgld (SG), or any Internet site, is not a good idea. Accordingly, users agree to hold SG, its owner and affiliates, harmless for all information presented on the site. SG presents no warranties. SG is not responsible for any loss of data, financial loss, interruption in services, claims of libel, damages or loss from the use or inability to access SG, any linked content, or the reliance on any information on the site.

The information contained herein does not constitute legal, tax or investment advice and may be subject to correction, completion and amendment without notice. SG assumes no duty to make any such corrections or updates. As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment. SG disclaims any and all liability relating to any investor reliance on the accuracy of the information contained herein or relating to any omissions or errors and as such disclaims any and all losses that may result.

Post Navigation