Central Banks
Category Archive

Soros’s Secret Weapon: the Impossible Trinity

21.03.2017 • Central BanksComments Off on Soros’s Secret Weapon: the Impossible Trinity

Yesterday we looked into how tightening monetary policy is just stimulus in disguise. Even if central banks raise interest rates, as they did in the US recently, they’re still spiking the economic punch bowl. We’re practically a bunch of drunks!The investment opportunities out of this were covered yesterday too. Today we look at what it means for the

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Why American Interest Rates Matter to India

17.03.2017 • Central BanksComments Off on Why American Interest Rates Matter to India

The United States still forms around one-fourth of the global gross domestic product (GDP). It remains the largest consumer in the world. And any global recovery isn’t going to happen, without the American economy finding its way back to where it

The Fed’s Broken Record Stimulus Package

16.03.2017 • Central BanksComments Off on The Fed’s Broken Record Stimulus Package

Janet Yellen gave the nod to increase official US interest rates by a 0.25%, taking the cash rate to a range of 0.75–1.0%. The Fed is using the same tried and failed formula it’s relied on previously to stimulate the economy…and, this time, it’s

The Beginning of the End of Europe

14.03.2017 • Central BanksComments Off on The Beginning of the End of Europe

Today’s Capital & Conflict is issuing an all-out alert. The inflation spectre is back. In Spain, Belgium and Germany inflation rates have been soaring since mid-2016. In Spain, prices have gone from falling 1% per year to rising 3%. In Belgium,

How Misguided Interest Rates Are Ruining Europe

13.03.2017 • Central BanksComments Off on How Misguided Interest Rates Are Ruining Europe

Europe got the European Central Bank and its one-size-fits-all policy instead, which was supposed to dampen the booms and soften the busts. But if Belgium is stuck with Greece and Portugal’s interest rate it will do the exact opposite.

Reckoning Day Arrives for Central Bankers

10.03.2017 • Central BanksComments Off on Reckoning Day Arrives for Central Bankers

Any criticism of central bankers is deemed unsavory. They are above the political fray. Independent thinkers entrusted with guiding the economy. Be courteous. Be respectful. Sorry, those days are over. These people must be held accountable.

Bundesbank: A Ticking Time Bomb

07.03.2017 • Central BanksComments Off on Bundesbank: A Ticking Time Bomb

The Bundesbank's balance sheet total now amounts to more than EUR 1.39 trillion, an increase in 400 billion in 12 months. The bomb bursts when interest rates rise, countries or companies are insolvent, Europe breaks or countries leave the EU.

La Pen: Not Mightier Than the Euro

07.03.2017 • Central BanksComments Off on La Pen: Not Mightier Than the Euro

By Simone Wapler – The Strategy of Simone Wapler (France) – Dear Reader, No this is not a campaign slogan. The candidate of the National Front became the obsession of holders of French sovereign debt, 60% of whom are foreigners outside the euro

Inflation Hits Fed Target for Raising Rates

16.02.2017 • Central Banks

But this is a world whose major institutions – banks, pension funds, governments, large corporations, all the major players in the Deep State system – have flourished on extremely low interest rates. Now, like dinosaurs that have adapted to the tropics,

Lower Inflation Bodes Well For Argentina

15.02.2017 • Central Banks

By Iván Carrino – El Diario del Lunes (Argentina) – On Friday of last week, I took my dog to the vet. In the midst of the conversation about vaccines, anti-parasitics etc., the state of the economy came up. The vet was outraged. “Are you an

Forget the Dog, Beware of Wall Street

15.02.2017 • Central Banks

By Bill Bonner – Bill Bonner’s Diary (USA) – Why should stocks be so expensive? Oh, yes… because the Trump Team is going to light a fire under Wall Street. But they must be wondering about that, too. Raising up stock prices – as we’ve

Why Greenspan is Right to Fear the Eurozone and TARGET 2

06.02.2017 • Central Banks

Simply put, Target 2 is an accounting system that keeps a tally of what bank owes what during transfers happening between European central banks. Does it matter if those electronic euros are stored in Germany or any other country? Not unless one of the

Indian Banks Ballooning With Bad Loans

11.01.2017 • Central Banks

The government will have to keep pumping more capital into public banks in order to keep them going. And that means more taxpayer money going down the drain.

British Economist Blasts Bank Of England Over 2008 Crisis

09.01.2017 • Central Banks

Andrew Haldane, chief Bank of England economist, compared the bank’s 2008 oversight to meteorologist Michael Fish claiming in 1987 that Britain wouldn’t be hit by a hurricane. It was.

Three Reasons the German Government Wants to Eradicate Cash

09.01.2017 • Central Banks

For years, an influential group of economists, politicians and lobbyists has been making a strong ban on cash. Behind them are, however, their own interests and nothing else.

Expensive ECB Rescue of Italian Banks Imminent

04.01.2017 • Central Banks

If the European Central Bank, the ECB, were to agree to this rescue program, this would be a smooth breach of confidence within the Eurozone. The risks in Italy are not manageable.

A French Vision of the Eurozone in 2017

03.01.2017 • Central Banks

Simone Wapler – The Strategy of Simone Wapler (FRA) – It’s the end of the year. A civilized and conscientious biped is supposed to establish a balance and consult his crystal ball to reveal the trends of the following year. This will also be the

Goldman Sachs Laughs at Fraud Accusations

28.12.2016 • Central Banks

Between 2007 and 2012, the bank attempted to move the so-called "Isdafix" to specific levels with certain agreements among dealers. When the Deutsche Bank tried this, they were fined 50 million dollars.

Some Striking Lessons From the Past

22.12.2016 • Central Banks

Fortune’s 2000 portfolio lost 65% of its value over the subsequent decade. By December 2012, three of Fortune’s recommended companies had gone bankrupt and another had been taken over.

A Swift Solution for Bad Banks

22.12.2016 • Central Banks

The thing is, it really shouldn’t be that hard. If only meddling bureaucrats, politicians, and bankers wouldn’t insist on interfering with the processes of the free market.

What American Interest Rates Mean for the World Economy

20.12.2016 • Central Banks

In Germany interest rates creep slowly and quietly upwards, without being noticed by anyone. All of this has tangible consequences for us savers and consumers and a fatal impact on the global economy.

Actual Household Spending Disproves Conventional Economic Wisdom

19.12.2016 • Central Banks

It is time to update our models of how the modern economy works. And we can’t help but wonder why – given that this is its own research – the Bank of England constantly reaches the opposite conclusion.

Red is the New Green

16.12.2016 • Central Banks

The recent rate hike, and subsequent strengthening of the dollar, are only distractions. The bottom line is that the world is deeply in debt and will never return to normal, regardless of the Fed’s choices.

Here’s Why Governments Can’t Stop Wasting Your Tax Money

16.12.2016 • Central Banks

The feds have created a monster. Now, they are desperate to keep it happy… well-fed… and, most importantly, locked up. When this $35 trillion Frankenstein gets loose, there will be hell to pay.