Aren't the Europe crazy? China sells German debt to ECB

Discussion in 'General Trading Discussion' started by WaveWage, Nov 2, 2015.

  1. WaveWage

    WaveWage Well-Known Member

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    Sometimes, I just don't get it: Europe plays a lot on Quantitative Easing side, so much they struggle to aid the economy by finding traders wanting to play to that party.


    The Germany's Central bank must buy, for example, €10 billion of bonds each month. That's a lot of money for the easing policy, and they want to revamp the program given the Asian slowdown affecting the Europe.


    And, since we talk about China, China is "helping" Europe by selling German Bonds, meanwhile the People's Bank of China is freeing up its reserves since the slowdown (the reserves gone from $4 trillion at June 2014, to $3.5 trillion in September).
     

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