Posted Dec 16, 2021 by Martin Armstrong
As I mentioned on the Private Blog yesterday, the Federal Reserve declared World War III in the financial markets as the European Central Bank (ECB) was on its knees groveling, “Please don’t raise rates.” The Bank of England (BoE) is in far better shape than the ECB, which is on the verge of collapse. The BoE became the first major central bank to raise interest rates to 0.25% from a historic low of 0.1%. They were the first central bank to raise rates since the beginning of the pandemic, while the ECB said it would continue to cut its bond purchases, but that is questionable.
The ECB is in serious trouble. Where the Fed has allowed previous purchases to mature, the ECB has been rolling everything they have been buying in addition to new purchases. Europe is just doomed, and the lockdowns following the agenda of Schwab’s Great Reset make claims of economic growth a very bad joke.
The ECB is in a major crisis. The BoE did not follow the course of action as the ECB, so it is not in such a state of need of intensive care. Needless to say, the computer’s projection of rising rates appears to be on target.