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  • Germany ready for deficit spending if recession hits: Spiegel

Added at 10:26am

  • German government wants to sacrifice black zero in recession

    From spiegel.de

    Chancellor Angela Merkel (CDU) and Finance Minister Olaf Scholz (SPD) are prepared to give up the goal of a black zero in the federal budget in the event of a recession. The SPIEGEL learned from sources in Chancellery and Federal Ministry of Finance. The holes, which would break a economic crisis, for example, through lack of tax revenue, should be stuffed with new debt. The government wants to let the so-called automatic stabilizers work in the downturn. Loss of revenue or increased spending due to the crisis are offset by loans, which smooths the course of the economy. The requirement applies to the budget of the ... (full story)

Short the pound spike and buy the EU equities ...
Reason for moving?
It's life let's live and enjoy
Good for me
That which does not kill us makes us stronger
So.. purposely trying to negate the really weak US consumer data numbers are we?
Quoting Aaafx-trader
Short the pound spike and buy the EU equities ...
Why selling pound ?
Does not sound healthy.
Quoting Ghass1234
{quote} Why selling pound ?
If you read between the lines, they are saying to Britain: We are ready for a devaluation war..
Ok. EUR up...
Next - expect a contrary message that this must be consolidated with the rest of the EU members (which is true) before they can sacrifice anything.
Then - EUR back down where it was.
Start with 1000$. Increase by 3% every day. After one year 2 213 314$
Quoting Aaafx-trader
{quote} If you read between the lines, they are saying to Britain: We are ready for a devaluation war..
Devaluation means that Eur down , GBP up , no ?
or from a technical point of view

simple manipulation for tightening the knob, big moves will follow as the knob in 5mins is tooo toght now.
Attached Image (click to enlarge)
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Quoting Aaafx-trader
{quote} If you read between the lines, they are saying to Britain: We are ready for a devaluation war..
There then is the option to reissue Deutsche Marks - if all else fails.
Quoting Ghass1234
{quote} Devaluation means that Eur down , GBP up , no ?
No, it means a nightmare ...
No, it means huge fiscal boost around 100-150B EUR yearly. This means huge boost for EZ growth, inflation etc. This means strong EUR in coming months/year.
Quoting JakubSzalaFX
No, it means huge fiscal boost around 100-150B EUR yearly. This means huge boost for EZ growth, inflation etc. This means strong EUR in coming months/year.
Lol
Good luck with that
Draghi's "poison tooth" is pulled out
Quoting Aaafx-trader
{quote} Lol Good luck with that
Buy EU equities
Quoting JakubSzalaFX
{quote} Buy EU equities
Exactly
BIG rally coming soon in the GBP - more than a spike.
Printing money is just more paper on the bonfire.
Quoting Maxthetrader
BIG rally coming soon in the GBP - more than a spike.
Down. You always dream.
Quoting JakubSzalaFX
No, it means huge fiscal boost around 100-150B EUR yearly. This means huge boost for EZ growth, inflation etc. This means strong EUR in coming months/year.
Well, EUR/USD spiked so this must be what the market is thinking. I personally think it is insane that they would think this after all that the ECB threw at it with negative rates that this would help. But apparently they think this will cause inflation...
Quoting Maxthetrader
BIG rally coming soon in the GBP - more than a spike.
ya i feel it too Pound up
I get it ... trading the EUR on the upside make alot of sense, than shorting and get hit with a 200-400 spike!
So just let the pair go and trade something else
Quoting skillz16
{quote} Well, EUR/USD spiked so this must be what the market is thinking. I personally think it is insane that they would think this after all that the ECB threw at it with negative rates that this would help. But apparently they think this will cause inflation...
Actually, most of the Western World(maybe the whole World) think that most of the EZ economic slack comes from the German budget surplus.

PS

About your comment to the ECB action. No one really believes Germany would resign from their surplus. So any fiscal stimulus would be a shock.
A report from a non govermental source.
Confucius: the man who broke the mountain was the same man who started ...
Quoting JakubSzalaFX
{quote} Actually, most of the Western World(maybe the whole World) think that most of the EZ economic slack comes from the German budget surplus. PS About your comment to the ECB action. No one really believes Germany would resign from their surplus. So any fiscal stimulus would be a shock.
Good point about the perceptions part of this.
Short cover before the weekend - then loading up again for another run.
do they know something scary???
Quoting Aaafx-trader
I get it ... trading the EUR on the upside make alot of sense, than shorting and get hit with a 200-400 spike! So just let the pair go and trade something else
Dax Down my friend
Quoting Aaafx-trader
{quote} Exactly
Too expansive

It's short until we get some real dip.

Right now dips are nothing, its a dip for retailers to buy and big boys to sell
COT: The precious data ignored
Quoting kuroro001
{quote} Too expansive It's short until we get some real dip. Right now dips are nothing, its a dip for retailers to buy and big boys to sell
Well, i'm not a big fan of shorting ... so you have that!
  •  Guest
  • | IP XX.XX.84.34
Not all currencies can go down together. Some must go up.
  •  Guest
  • | IP XX.XXX.3.145
That's just to prop up the EUR while their economy is tanking from the US/China trade war. In another words, filling in what the Chinese have taken out. Oh, let's not forget the US/EU trade war that DJT hasn't fired up... yet. Net net -- EUR/USD will still be under pressure.
Not explained the whole condition of the Euro Zone.
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  •  Guest
  • | IP X.XXX.226.14
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  • Story Stats
  • Posted: Aug 16, 2019 10:23am
  • Submitted by:
     Newsstand
    Category: High Impact Breaking News
    Comments: 35  /  Views: 22,014