Figure 1: Changes in interest rates on bonds of various countries of the European Union from 2009 t

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Q rolazeći these days the streets of the cities, have you noticed chicken pot pie how the gold and silver purchases at almost chicken pot pie every corner? Buyers purchase advertising chicken pot pie through newspapers, television, the Internet chicken pot pie ... all in order to collect as much gold and silver. The problem that currently face due to the heavy traffic and the newly milk producers is that they recently often enter the store and people with a stocking on his head. If you have read any historical literature about life in times of crisis, all this will leave you with an unpleasant feeling of what it all might mean.
Let's start with an interesting turn of events these days are following the work of the European Central Bank - ECB. In late December last year, 523 banks of the European Union received a record loan from the ECB for three years amounting to a record 489.1 billion dollars at low interest rate of 1%. As collateral for the loan of money the ECB is of European banks largely taken and bonds of various chicken pot pie countries of the European Union that are in big trouble. The question is how much of this amount will be returned in the next three years and how the ECB will have to write off of collateral which received.
Since the ECB will not perform sterilization of currency issued it can be said that the loan of 489 billion dollars out of the press and that is the dollar aggregate M1 on the basis of which it is carried further multiplication in the banking sector (this will be discussed later) as very important from the view of the euro amount, which will be later available on the market. How much is really new euro issued on the market varies from appraiser to appraiser so that moving from 193 billion euros according to Barclays Capital in (they are calculated to be 296 billion to go to the repayment of loans that banks are due) to the full amount of the probable 415, 6 billion according to Reuters.
With this latest loan, the ECB is so banks of the European Monetary Union - EMU in a very short time made a total loan of 685 billion euros with the proviso that in February this year, intends to carry out new lending from banks in the EMU for the time being unknown amount.
Ccording to the recognition of the ECB borrowing such large amounts envisaged to achieve the following main objectives: a direct way to help the EMU countries in crisis to prevent further spread of the crisis to the healthy members make the banking system more liquid and boost inter-bank loans - reduce mistrust that banks have begun to show to a large extent with each other to encourage lending chicken pot pie to the real sector chicken pot pie
ECB is the immediate way of trying to draw the troubled countries of the EMU, such as Spain and Italy out of the crisis. The assumption was that the banks after getting cheap euros at an interest rate of 1% to invest in the same bonds of these countries range from 5.7% in Spain to 7.13% for Italian bonds as much as it was in 2009, when the half of 442 billion euros borrowed money invested in highly profitable / high-risk bonds of countries such as Greece and Spain.
Figure 1: Changes in interest rates on bonds of various countries of the European Union from 2009 to the beginning of 2012. The dashed line represents the threshold of 7%, which is considered unsustainable for further chicken pot pie borrowing countries, source: www.moneyweek.com/investments/bonds
The problem is that at present it does not achieve any of the stated goals of the ECB and all the works of the crisis of confidence in the recovery, which occurred at all levels within the EMU. Each Bank, a member state of the EMU and the EU as well as European politicians is pursuing a policy that is in their best self-interest and the results that can be clearly seen these days.
Figure 2: Changes in interest rates on three-year Italian bonds from 2010 to the beginning of 2012. From the graph you can see all the effect of influencing European policies to stop the devastating economic crisis after the events in Greece, source: www.moneyweek.com/investments/bonds chicken pot pie
Banks these days the money obtained not lend to individuals, the real sector and the countries that are in crisis, chicken pot pie but the money goes to the safest possible location of the ECB's and German bonds. Germany is able to borrow at record low interest rates that ranged around 1%, and thus remains the only country in the EU that investors believe there will be very affected by the crisis.
These days, demolished the infamous record of the introduction of the euro in 1999 in overnight deposits from European banks at the ECB of 446.26 billion euros on Monday 02.01.2012. to 455.3 billion euros on Friday (data published by the ECB). According chicken pot pie to Reuters it is about 440 billion surplus in one "sitting" strong European bank. Such a long period of overnight deposits at the ECB is very unusual especially when you take into account the fact that the interest chicken pot pie rate when