Lowering interest rates is not always good news—not in a system dominated by the Wall Street and City of London gambling houses. Therefore the question “Cui Bono,” usually raised in criminal cases, is legitimate. The ECB lowered its three main interest rates by a quarter point yesterday: the Marginal lending facility to 4.50%, the Main refinancing operations to 4.25% and the Deposit facility to 3.75%.
Some analysts see this as a way to help financial flows to the USA, where ten-year bonds are at 4.60%, in order to avoid a Wall Street collapse before the elections.
On the other side of the Atlantic, indeed, official sources are revising downwards growth estimates. The GDPNow indicator of the Atlanta Fed was at 4.1% for Q2, it went down to 2.7% at the end of May, and further down to 1.8% last Tuesday.
