Europe Has Just Entered the “END GAME”

It’s GAME OVER for the ECB and for Europe.

The ECB has cut interest rates into negative territory four times. It has also spent €1 trillion in QE bringing its balance sheet to a record high.

These are truly extraordinary policies. Keynesian shills usually claim that the reason their policies don’t work is because a Central bank hasn’t done “enough.” At FOUR NIRP cuts in two years and €1 trillion in QE the ECB has most certainly done enough.

And what has it got to show for it?

The ECB is close to exhausting its ammunition and appears increasingly powerless to do more under the legal constraints of its mandate. It has downgraded its growth forecast for the next two years, citing the uncertainties of Brexit, and admitted that it has little chance of meeting its 2pc inflation target this decade, insisting that it is now up to governments to break out of the vicious circle.

http://www.telegraph.co.uk/business/2016/09/08/ecbs-mario-draghi-has-run-out-of-magic-as-deflation-closes-in/

We all know the ECB wasn’t going to achieve significant GDP growth. The ECB all but admitted this a few years ago when it suddenly changed its language to ignore growth and instead focused on “inflation” and inflation targets.

But now… the EBC is admitting it won’t hit it inflation target “THIS DECADE.”

It’s GAME OVER for the ECB and for Europe.

What’s coming will not occur quickly. I am in no way suggesting that Europe will break apart tomorrow. But the fact the ECB has admitted that even its extraordinary policies have failed to the point that it won’t achieve its goals for a decade indicates it’s the beginning of the end.

Debt deflation is the end game for Europe. Most EU nations are insolvent as soon as their interest rates spike even into the low single digits. And with EU banks leveraged at 26 to 1 with EU sovereign bonds being used as the senior most assets on their balance sheets, you only need a 4% drop in EU bond levels to render most large EU banks insolvent.

And we’re talking about a banking system that is north of $46 TRILLION IN SIZE.

This is more than TWICE the size of the US banking system, which nearly took down the world in 2008. So it Europe goes, it’s going to be exponentially worse than 2008.

If you’re looking for investment strategies to profit from this, I can help you…

Case in point, thus far in 2016 Private Wealth Advisory subscribers have made a killing shorting European banks while also being long various mining companies.

As a result of this, we’re now at 107 STRAIGHT WINNING TRADES.

Indeed, we haven’t closed a single loser since November 2014.

107 straight winners… and not one closed loser… in 20 months.

We take a careful and calculated approach to investing… which is how we’ve been able to maintain this incredible streak of winners… despite market conditions that can be described as “challenging” at best.

You can join us today by taking out a 30 day trial subscription to Private Wealth Advisory for just $0.98.

If you find Private Wealth Advisory is not what you’re looking for just drop us a line and you won’t be charged another cent.

To take out a 30 day trial subscription to Private Wealth Advisory for just $0.98…

CLICK HERE NOW!

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Disclaimer: The information contained on this website is for marketing purposes only. Nothing contained in this website is intended to be, nor shall it be construed as, investment advice by Phoenix Capital Research or any of its affiliates, nor is it to be relied upon in making any investment or other decision. Neither the information nor any opinion expressed on this website constitutes and offer to buy or sell any security or instrument or participate in any particular trading strategy. The information in the newsletter is not a complete description of the securities, markets or developments discussed. Information and opinions regarding individual securities do not mean that a security is recommended or suitable for a particular investor. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. 

Opinions and estimates expressed on this website constitute Phoenix Capital Research's judgment as of the date appearing on the opinion or estimate and are subject to change without notice. This information may not reflect events occurring after the date or time of publication. Phoenix Capital Research is not obligated to continue to offer information or opinions regarding any security, instrument or service. 

Information has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. Phoenix Capital Research and its officers, directors, employees, agents and/or affiliates may have executed, or may in the future execute, transactions in any of the securities or derivatives of any securities discussed on this email. 

Past performance is not necessarily a guide to future performance and is no guarantee of future results. Securities products are not FDIC insured, are not guaranteed by any bank and involve investment risk, including possible loss of entire value. Phoenix Capital Research, OmniSans Publishing LLC and Graham Summers shall not be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided. 

Phoenix Capital Research is not responsible for the content of other websites or emails to which this one may be linked and reserves the right to remove such links. OmniSans Publishing LLC and the Phoenix Capital Research Logo are registered trademarks of Phoenix Capital Research. Phoenix Capital Management, Inc.
What Happens When the Everything Bubble Bursts?
  • By trying to corner the bond market (risk-free rate)
  • the Fed has created a bubble in everything
  • We call this THE EVERYTHING BUBBLE
  • Reserve your copy of our Executive Summary
  • To prepare for what's coming down the pike!