Europe started printing money ?

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ArberPro
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ArberPro

Europe started printing money ?
« on: September 07, 2014, 08:12:27 PM »
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I saw in the news that ECB cut the lending  rates to 0.05%  and increased the negative deposit rate to -0.2%.
So my questions are :
-did they start printing money now ? (if not i think they will start very soon )
-if eu arbers have there savings in euro should they switch to another currency ?
-now or in the soon future is the time to invest in  land or houses?  (so you're savings wount lose value)
-what is the negative impact of this will they create another bubble? (i am hearing about avoiding deflation ,and revieving the industry but nothing about the side effects)
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sportoboy
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Re: Europe started printing money ?
« Reply #1 on: September 08, 2014, 01:36:08 PM »
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-did they start printing money now ? (if not i think they will start very soon )

Well, they haven't started printing money yet, but according to the other measures they've taken, it is the next step. That's why euro has taken the downfall during the past months (around 6,5% down compared to USD). But I don't think that the ECB will do the massive printing that the US have been making in the past few years. Also, no one can surely predict the moves, cause besides printing there are many aspects affecting a currency.

-if eu arbers have there savings in euro should they switch to another currency ?

We had a similar discussion here when the euro currency was having it's crisis back in 2012 with a very unstable situation in Greece and the bank crisis in Cyprus. I've written a post, but can't find it. Keyword is diversification. Even in good days, you shouldn't have all your savings in euros. No need to switch, but at least split your -not used for arbing- bankroll in two or three currencies you trust. Also, buying some precious metals won't hurt, I would suggest a 10% of your bankroll.

-now or in the soon future is the time to invest in  land or houses?  (so you're savings wount lose value)

That can be part of your diversification. But beware of the overrated land markets. If you are going towards property investment find an underrated market. It's tough, I know...

-what is the negative impact of this will they create another bubble? (i am hearing about avoiding deflation ,and revieving the industry but nothing about the side effects)

Well, by avoiding deflation you have... inflation, so that's the worst side effect. With inflation, your euros will lose value and prices on products, services etc will rise. Also, a main target for the ECB was to replace USD as the prevalent currency in world transactions (for example when a country sells oil to another). If they go the "printing money" path, that would be very hard to achieve.


Now, I'm not an economics experts, that's just my point of view. I would be happy to see posts from other members, that are more educated on the subject or more experienced on the economics field.
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