The ECB announces additional QE and extended duration...

And the money printers go Brrrrrrrrr.

When the money printing starts, it's hard to stop.

Especially when the data is showing that it will be some time before a real sustainable recover starts to manifest.

For this reason the ECB announced Thursday evening that they would be beefing up their QE program to roughly $1.5 trillion worth of asset purchases.

And this would be extended through June of 2021.

Though, judging by the wording and the current pace of purchases it is more likely that this is the start of QE infinity, much like the FED is doing in the US.

The announcement can be seen here btw:

https://www.cnbc.com/2020/06/05/ecb-coronavirus-stimulus-expected-to-continue-as-inflation-remains-low.html?__source=twitter%7Cmain

QE infinity?

Due to the number of assets being purchased on a daily basis it looks very much like the ECB will reach their program limits well before June of 2021.

Due to this, there is expectation that the total QE amount will be expanded in the near future as well.

Which is leading many to call this more like QE infinity, where there are actually no limits and central banks just keep printing and buying until the problem is solved.

Similar to what the FED is going.

This is all very much expected...

Once you start printing money, you never really stop.

The economy and financial system gets so dependent on it that there will only be brief periods of time where it can stand on its own two legs without it.

Like we saw in 2018 and 2019.

However, as we saw it doesn't take much to topple things over and then the money printers are turned right back on the stimulus comes right back.

This works for a while until eventually you have too much money floating around out there with little to no velocity.

The savers and those holding this money are the big losers as everything price in it will continue to go up in value.

This includes bitcoin.

Everything seems to be lining up perfectly for bitcoin right now.

Like Bloomberg said the other day, something would have to go terribly wrong for bitcoin not to hit $20k+ this year.

Stay informed my friends.

Image Source:

https://www.cnbc.com/2020/06/05/ecb-coronavirus-stimulus-expected-to-continue-as-inflation-remains-low.html?__source=twitter%7Cmain

-Doc