Keyword: centralbanks

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  • Are Central Banks Losing Control?

    03/10/2017 8:56:55 AM PST · by Lorianne · 8 replies
    Of Two Minds ^ | 08 March 2017 | Charles Hugh Smith
    Eight years after the crisis of 2008-09, central banks are still injecting $200 billion a month into the global financial system to keep it from imploding. If you want a central banker to choke on his croissant, read him this quote from socio-historian Immanuel Wallerstein: "Countries (have lost the ability) to control what happens to them in the ongoing life of the modern world-system." Stated another way, Wallerstein is asking: what do central banks no longer control? The quote is from Wallerstein's recent meditation on China: China is Confident: How Realistic? "The question is how realistic is this self-assessment of...
  • We should nationalise German banks' Warning Deutsche Bank teetering on edge of CRISIS

    08/09/2016 7:06:46 PM PDT · by MarchonDC09122009 · 17 replies
    UK Express ^ | 08/09/2016 | SIMON OSBORNE
    http://www.express.co.uk/news/world/698305/Deutsche-Bank-financial-crisis-EU-Angela-Merkel 'We should nationalise German banks' Warning Deutsche Bank teetering on edge of CRISIS A TOP economist has warned that Germany's biggest bank is teetering on the edge of crisis and they only way to protect it against future shocks is to nationalise it. By SIMON OSBORNE 20:03, Tue, Aug 9, 2016 | UPDATED: 21:00, Tue, Aug 9, 2016 Germany central bank, the Deutsche Bank, would be hit hard in a new financial crisis Martin Hellwig said stress tests carried out by the European Central Bank revealed the Deutsche Bank would be left in a precarious position in the event of...
  • Central Banks Now Selling US Debt at Record Pace

    08/18/2016 11:12:36 AM PDT · by milton23 · 16 replies
    Daily Signal ^ | 8/18/16 | William T. Wilson
    In the first six months of 2016, foreign central banks sold a net $192 billion of U.S. Treasury bills, notes, and bonds. This is more than double the pace from the same time last year. China, Japan, and Brazil were the leaders in selling U.S. debt. With the U.S. debt running at approximately $19.4 trillion, this could be problematic. A large selloff of U.S. bonds would decrease their price, or in other worlds, increase domestic interest rates in general (bond prices and interest rates always move in the opposite direction).
  • Brexit Chaos to Serve as Cover for ECB Bank Bailouts

    06/17/2016 10:04:01 AM PDT · by Lorianne · 4 replies
    Wolf Street ^ | 14 June 2016 | Don Quijones
    Over the course of the last few months, Brexit has become one of the biggest catch-all preemptive scapegoats of recorded human history. Even far beyond the old continent’s porous borders, politicians, central bankers, and economists are warning their respective populations to brace for a serious aftershock if the people of Britain vote to leave the EU. This is is a remarkable feat given that the UK has its own perfectly functioning currency, and as such decoupling from the EU, while bumpy, should not pose an immediate financial threat either to the UK or the EU, let alone the world at...
  • Central Bank Dump Of US Debt Deepens

    05/20/2016 6:42:09 PM PDT · by Lorianne · 25 replies
    Contra Corner ^ | 18 May 2016 | Patrick Gillespie
    Central banks are dumping America’s debt at a record pace. China, Russia and Brazil sold off U.S. Treasury bonds as they tried to soften the blow of the global economic slowdown. They each sold off at least $1 billion in U.S. Treasury bonds in March. In all, central banks sold a net $17 billion. Sales had hit a record $57 billion in January. So far this year, the global bank debt dump has reached $123 billion. It’s the fastest pace for a U.S. debt selloff by global central banks since at least 1978, according to Treasury Department data published Monday...
  • 'Miracle' needed to save the world, because central banks can't

    05/11/2016 6:03:21 AM PDT · by Lorianne · 12 replies
    Source material cannot be posted to FR | 11 May 2016 | Vesna Poljak
    see link below
  • German report: Bailout has saved banks, not Greece

    05/07/2016 11:15:18 AM PDT · by Lorianne · 8 replies
    Ekathimerini ^ | 04 May 2016
    Some 95 percent of the 220 billion euros disbursed to Greece since the start of the financial crisis as loans from the bailout mechanism has been directed toward saving the European banks. That means about 210 billion euros was eventually channeled to the eurozone credit sector while just 5 percent ended up in state coffers, according to a study by the European School of Management and Technology (ESMT) in Berlin. “Europe and the International Monetary Fund have in previous years mainly saved the banks and other private creditors,” concluded the report, published yesterday in German newspaper Handelsblatt. ESMT director Jorg...
  • Lost Faith In Central Banks And The Economic End Game

    04/08/2016 3:38:14 AM PDT · by SkyPilot · 5 replies
    Alt-Market ^ | 6 Apr 16 | Brandon Smith
    We live in strange economic times, stranger perhaps than at any other point in history. Since 2007-2008, the globally intertwined and dependent fiscal system has suffered considerable declines in every conceivable area. Manufacturing around the world is in a slump, from Japan to China to Europe, with the minimal manufacturing accomplished in the U.S. also fading. Consumption is falling, most notably in petroleum and raw materials. Employment is truly dismal, with the U.S. posting over 94 million people as “non-participants” in the national work force. High paying jobs are disappearing, and the only jobs replacing them are in the...
  • World is 'overloaded on monetary policy', says OECD

    03/20/2016 2:34:18 PM PDT · by Lorianne · 4 replies
    Telegraph (UK) ^ | 19 March 2016 | Szu Ping Chan
    Central banks cannot haul economies out of stagnation on their own, the OECD has warned. Catherine Mann, chief economist at the Paris-based think-tank, said countries were now “overloaded on monetary policy” as she described the use of negative interest rates as “a reaction of central banks trying to meet the objective of raising inflation and fostering growth alone”. Ms Mann said banks faced being “squeezed” by the unintended consequences of sub-zero rates in an environment where demand remained subdued. The OECD has repeatedly warned that fiscal policy and structural reforms are needed to ensure recoveries are self-sustaining. “In the economies...
  • Central Banks Have Signed Their Death Warrants

    02/28/2016 8:35:01 PM PST · by TigerLikesRooster · 31 replies
    Daily Reckoning ^ | February 22, 2016 | David Stockman
    Central Banks Have Signed Their Death Warrants During the past year U.S. consumption spending for health care rose by 5%. Spending at restaurants and bars were up by 9%, while spending for gasoline and other energy products was down by 22%. This was Mr. Market at work--millions of households reallocating their spending in response to relative price changes. It had nothing to do with a macroeconomic abstraction called "weak demand". Actually, the medical care component of the CPI rose 3.3% last year. Housing and shelter were up by 3.2%, while gasoline prices were down by 7.3%. It all added up...
  • Burning Down the House in 2016

    02/22/2016 7:08:24 AM PST · by Travis McGee · 86 replies
    Western Rifle Shooters Association ^ | February 22, 2016 | Matthew Bracken
    Hold tight, wait 'til the party's over. Hold tight, we're in for nasty weather. There has got to be a way Burning down the house. By now, it should be obvious to the observant that the 'scoundrels-looting-the-treasury' phase of our economic arc is about played out, and before the entire rotten financial edifice collapses, there will be a war ignited across Europe and the Middle East which will serve as a distraction for the masses, while the very worst of the scoundrels take to ground to wait for the smoke to clear before they emerge. The gangsters actually directing the...
  • Central Banking Goes Negative

    02/18/2016 8:40:29 PM PST · by MtnClimber · 3 replies
    Project Syndicate ^ | 18 Feb, 2016 | STEPHEN S. ROACH
    NEW HAVEN - In what could well be a final act of desperation, central banks are abdicating effective control of the economies they have been entrusted to manage. First came zero interest rates, then quantitative easing, and now negative interest rates - one futile attempt begetting another. Just as the first two gambits failed to gain meaningful economic traction in chronically weak recoveries, the shift to negative rates will only compound the risks of financial instability and set the stage for the next crisis. The adoption of negative interest rates - initially launched in Europe in 2014 and now embraced...
  • Questions grow over banks as profit warnings pile up

    02/11/2016 6:18:56 PM PST · by SkyPilot · 8 replies
    The Associated Press ^ | 11 Feb 16 | GREG KELLER
    PARIS (AP) -- Questions are growing over the financial health of banks, particularly in Europe and the U.S., as they face a toxic mix of low economic growth, bad loans and squeezed earnings. France's Societe Generale became Thursday the latest bank to issue a confidence-shattering profit warning, which helped trigger a new sell-off in financial stocks. The bank saw its share price stumble 12 percent and major rivals like Deutsche Bank and UniCredit saw losses of nearly 10 percent. European banks are not the only ones to suffer. Japanese bank Mitsubishi Financial fell 7 percent on Thursday. In the U.S.,...
  • The War on Cash is About to Go into Hyperdrive

    02/11/2016 1:04:34 PM PST · by SkyPilot · 67 replies
    Zerohedge ^ | 11 Feb 16 | Phoenix Capital Research
    The global Central Banks have declared War on Cash. Historically, one of the safest things to do when the markets begin to collapse is to move a significant portion of your holdings to cash. As the old adage says, during times of deflation, "cash is king." The notion here is that cash is a safe haven. And while earning 1-2% in interest doesn't do much in terms of growing your wealth, it sure beats losing 20%+ by holding on to stocks or bonds during their respective bear markets However, in today's world of fiat-based Central Planning, cash represents a REAL...
  • The recession of 2016 Central bank bungles, oil price fluctuations and overregulation...

    01/19/2016 4:46:52 AM PST · by expat_panama · 12 replies
    The Washington Times ^ | January 18, 2016 | Richard W. Rahn
    There will be a recession in the United States and much of the rest of the world in 2016. After reading the above sentence, you should be thinking, what possibly could the writer know that the International Monetary Fund, the Federal Reserve and the Obama administration do not know given all their resources and all of their professional economic forecasters? If one looks at the forecast record of the IMF and the Fed over the past several decades, one will not find any case in which a year of positive growth was followed by a year of contraction in which...
  • Any doubts over about December Fed hike may be swept away

    11/14/2015 7:59:42 AM PST · by BenLurkin · 23 replies
    in.reuters.com ^ | Jonathan Cable
    While most U.S. data has been relatively upbeat, retail sales rose less than expected in October, suggesting a slowdown in consumer spending that could temper expectations of a strong pickup in fourth-quarter economic growth. In the meantime, Britain's Bank of England was once pegged as likely to be the first major central bank to tighten policy but prices fell again last month, data will probably show on Tuesday. With inflation so far below its 2 percent target the BoE's Monetary Policy Committee won't be raising its benchmark rate from a record low 0.5 percent until at least April, a Reuters...
  • Doubters question 'strange' stock market rebound

    11/06/2015 11:05:02 AM PST · by SkyPilot · 20 replies
    Reuters and Yahoo News ^ | 6 Nov 15 | Alistair Smout and Danilo Masoni
    The double-digit stock-market rebound after a bruising summer has put European shares back into positive territory for the year, but sentiment around the central-bank-fueled rally remains fragile. Weak trading volumes, a so-far disappointing earnings season and a focus on reliable dividend payouts rather than blockbuster growth have all contributed to the view that investors are being sucked into a market updraft rather than enthusiastically betting on a cyclical upturn. Even with European shares getting a fresh lift from a weaker euro on Friday - after U.S. data smashed expectations and fueled bets on tighter U.S. rate policy in contrast with...
  • Central bank cavalry can no longer save the world

    10/12/2015 12:14:19 PM PDT · by Lorianne · 8 replies
    Reuters ^ | 10 October 2015 | David Chance
    In 2008 central banks, led by the Federal Reserve, rode to the rescue of the global financial system. Seven years on and trillions of dollars later they no longer have the answers and may even represent a major risk for the global economy. A report by the Group of Thirty, an international body led by former European Central Bank chief Jean-Claude Trichet, warned on Saturday that zero rates and money printing were not sufficient to revive economic growth and risked becoming semi-permanent measures. "Central banks have described their actions as 'buying time' for governments to finally resolve the crisis... But...
  • US interest rate rise could trigger global debt crisis

    09/14/2015 7:50:38 AM PDT · by SkyPilot · 10 replies
    The Telegraph ^ | 13 Sep 15 | Telegraph Staff
    Global debt levels are dangerously high and central banks cannot keep the game going indefinitely, warns the high priest of orthodoxy Debt ratios have reached extreme levels across all major regions of the global economy, leaving the financial system acutely vulnerable to monetary tightening by the US Federal Reserve, the world's top financial watchdog has warned. The Bank for International Settlements said the wild market ructions of recent weeks and capital outflows from China are warning signs that the massive build-up in credit is coming back to haunt, compounded by worries that policymakers may be struggling to control events. "We...
  • Central banks can do nothing more to insulate us from an Asian winter

    09/06/2015 9:22:22 AM PDT · by Lorianne · 4 replies
    Guardian UK ^ | 06 September 2015
    The European Central Bank proudly announced on Friday that it is erecting a 17-metre-high bronze and granite tree outside its Frankfurt headquarters – an artwork intended to “convey a sense of stability and growth” – and, with its gilded leaves and massive trunk, presumably also wealth and power. But when Mario Draghi, the ECB’s president, appeared before the world’s media on Thursday at his regular press conference, it was the limit to central bankers’ power that was on display. Draghi was forced to admit that the outlook for eurozone growth and inflation had darkened considerably as a result of the...