Central Banks
Category Archive

Here’s What Spooked the Markets on Wednesday

15.12.2016 • Central Banks

Today, the US Federal Reserve did as the market expected. It raised interest rates. Yet there’s an obvious reason that this won’t be the last rate hike. Our eyes are on March.

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The Fed Must Feed Its Frankenstein

15.12.2016 • Central Banks

The Fed can raise short-term rates. But it will have to follow, not lead. It will have to hide in the shadow of rising consumer prices, staying “behind the curve” of inflation expectations.

The Bank Break Up Is Only a Distraction from the Real Threat

15.12.2016 • Central Banks

New banking regulations appear to be purely cosmetic. The real problem is in the foundation, where bankers ensure that everyone has access to “easy money” and debt is swept under the generational rug.

Italian Banking Sector Could Collapse On December 31st

14.12.2016 • Central Banks

If struggling bank Monte dei Paschi di Siena doesn’t resolve its financial issues by then, either through a restructuring or a capital injection, it could lead to a nightmare January for all of Europe.

A Lesson in Reaganomics That Could Revolutionize Argentina

13.12.2016 • Central Banks

In the 1980s, the United States was able to overcome a long period of “stagflation” under President Ronald Reagan. Argentina is currently facing a very similar situation under Mauricio Macri.

What the Fed’s Dec. 14th Meeting Means for Europe

09.12.2016 • Central Banks

From Dec. 14th onward, expect things to get more expensive here in Germany and across Europe. As the European Central Bank simply watches the decision in the US, I call this "cold expropriation."

Europe Has Bigger Fish to Fry Than Trump

08.12.2016 • Central Banks

By John Stepek – MoneyWeek Magazine (Great Britain) – I was in the pub with a financial adviser friend earlier this year, not long after the Brexit vote. Being based in Scotland, he’d already seen his business disrupted by the independence

The ECB Loses Control of Our Financial System

07.12.2016 • Central Banks

You may have asked yourself frequently in the past few months why the financial markets react differently to important events than predicted by experts. The answer is simple.

Another Crisis Comes and Goes Before You Can Understand It

06.12.2016 • Central Banks

By Kris Sayce – Port Phillips Insider (Australia) – Another crisis comes and goes almost before you can understand it. Yesterday, markets in Asia took a beating as the Italian constitutional referendum result became clear. Then, European markets

Watch the Numbers for Signs of a Crisis

06.12.2016 • Central Banks

By Nick O’Connor – Capital & Conflict (Great Britain) – After an initial bump, markets took the news of the Italian referendum vote in their stride. Does that mean Italy and Europe are out of the woods? That’s what I asked Tim Price.

The Euro Set to Decline Over the Next 5 Years

06.12.2016 • Central Banks

By Julien Backhaus – Wealth Protection Up-To-Date (Germany) – A Briton has said a few hours ago that the euro stands before the end. This statement will probably not surprise you. Crash prophets are finally more than enough. Still, the statement

Italy on the Brink of a Devastating Crisis

02.12.2016 • Central Banks

By Julien Backhaus – Wealth-Protection-Up-T0-Date (Germany) – You have already heard of a referendum in Italy on Sunday. It is about a total of 46 constitutional changes that the people should wave through. The vote is necessary from the point of

Is RBS a Buy?

01.12.2016 • Central Banks

It’s been eight years since the global financial crisis and some banks are still suffering. But yesterday we got a warning that not all UK banks are 100% out of the woods yet.

Philip Hammond’s Looking for Market Failure in the Fund Management Sector

01.12.2016 • Central Banks

I wrote in this week’s MoneyWeek editor’s letter that Philip Hammond’s abolition of letting fees for tenants should be seen as the start of this government’s intention to intervene wherever it sees “market failure.”

Projekt Angst: The End of Europe as We Know It

29.11.2016 • Central Banks

In German, it’s Projekt Angst. In French, it’s Projet de Peur. In Italian, Progetto di Paura. They all mean the same thing. Project Fear.

How to Admit You’re Wrong (Like a Central Banker)

23.11.2016 • Central Banks

Negative rates are a sign something is wrong in the system. That scares people. That fear leads them to becoming more conservative and actually saving more than they would otherwise.

100% Chance of Raising Rates – Why We’re Skeptical

23.11.2016 • Central Banks

Based on the futures markets, there is now a 100% probability of the Fed raising rates. But after the US election, we’ve come to doubt polls and probability… maybe we shouldn’t buy this rumor either.

Are You Prepared for the US to Raise Interest Rates in December?

17.11.2016 • Central Banks

If the Fed really has been gagging to raise rates, it’s never had a better time to do so. Given the near certainty, we should be able to assume that the market has fully priced a rate rise into all asset prices.

Keeping Yellen Around is a Win-Win for Trump

14.11.2016 • Central Banks

Should predictions of a US recession in 2017 come true, Yellen will be the perfect scapegoat. If the economy doesn’t tank, then Donald takes credit for a strong economy. Either way he spins it, he wins.

Why the Swiss Choose to Pay Their Taxes Early

09.11.2016 • Central Banks

By Federico Tessore – Investor Passport (Argentina) – What if I told you that there is a country whose citizens LOVE to pay taxes? No, I’m not talking about Argentina. I’m talking about a country where taxpayers not only don’t try to

Euro Central Bankers Turn Up the Heat on Cash Holders

07.11.2016 • Central Banks

At a meeting in London back in 2015, central bankers discussed the best ways to punish cash holders. You’ve already seen a few of their ideas in action: NIRP and the abolition of the €500 note.

The Fed Decides to Stifle Economy Even Longer

04.11.2016 • Central Banks

Bill Bonner – Bill Bonner’s Diary (USA) – Here’s the latest from the Fed. It just completed a two-day policy meeting and wrote in a press release: The Committee judges that the case for an increase in the federal funds rate has continued to strengthen

Bank of England Apologizes for Botching Economic Forecast

04.11.2016 • Central Banks

Nick O’Connor – Capital & Conflict (GBR) – In this issue of Capital & Conflict… the irony of sovereignty… asking the European Court for permission to leave… inflation returns… how to admit you’re wrong like a central banker… and why

UK Bank Leader Under Pressure to Step Down

31.10.2016 • Central Banks

At the weekend, reports surfaced that Mark Carney, governor of the Bank of England, may be close to stepping down. He could even use this Thursday’s inflation report to make the announcement.