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Keyword: centralbanks

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  • Europe could have a new problem on its hands: Pro

    09/05/2014 5:49:01 PM PDT · by Lorianne · 6 replies
    CNBC ^ | 04 September 2014 | Europe could have a new problem on its hands: Pro
    On Thursday morning, the European Central Bank surprised markets with a raft of stimulative measures including cuts in interest rates and the commencement of asset purchases. The news sent the euro currency much lower, but currency expert Boris Schlossberg of BK Asset Management identifies another reason why the euro could call even further: fresh concerns over a European Union breakup. ECB president Mario Draghi, in announcing the measures, mentioned that the vote was not unanimous. The strongest economy in the eurozone, Germany, is widely expected to have dissented. "It's a very, very tenuous union in many ways, and we see...
  • The Madness Of Crowds And The Great Insanity (the coming economic collapse)

    06/08/2014 6:42:22 PM PDT · by Perseverando · 139 replies
    Zerohedge ^ | June 8, 2014 | Ty Andros
    Never in my 30+ year career as a market observer have I seen so many out on a limb which is about to be SAWED OFF. Those who live within the matrix are fully loaded for a recovery which is not and will not appear. Nominally the Main stream media can proclaim ECONOMIC recovery has arrived, point to the rising developed world stock markets, seemingly benign bond markets of all categories: sovereign, investment grade and Junk, Private equity, corporate buy backs and more have priced in “Happy Days are here again”. HFT, unrestrained leverage in a financially repressed world and...
  • St. Louis Fed Research Director: Bitcoin Could Be A Good Threat To Central Banks

    04/07/2014 7:28:18 AM PDT · by Errant · 8 replies
    Business Inisider ^ | 6 April 2014 | Rob Wile
    Last week, St. Louis Fed Director of Research David Andolfatto released a presentation on Bitcoin, becoming one of the most prominent central bank officials to study the cryptocurrency. We caught up with Andolfatto to ask him about why he put this deck together, where he thinks Bitcoin is going, and whether he personally has anything invested in it. Business Insider: What was the genesis for this presentation? David Andolfatto: Its genesis was a blog post I'd started, addressing arguments that gold bugs frequently put forth, that gold is superior money. Of course, Bitcoin was in the news — I read...
  • What Kind of Fools Are Buying Gold?

    06/23/2013 1:05:52 PM PDT · by blam · 35 replies
    The Market Oracle ^ | 6-23-2013 | Jesse's Café Américain
    What Kind of Fools Are Buying Gold? Commodities / Gold and Silver 2013 June 23, 2013 - 08:55 PM GMT By: Jesse On the whole, the world's central banks are now net buyers of gold, and have been for some time, after being net sellers for over twenty years. Russia is one example. Why do you think they are buying it? They don't understand money? They don't know what they, and some of their associated central banks, are planning to do to recapitalize the deteriorating global financial system and dollar reserve trade regime? Did they forget to watch CNBC to...
  • Japan Stock Market Crash Leads To Global Sell Off

    05/23/2013 4:24:43 AM PDT · by SatinDoll · 18 replies
    Zero Hedge ^ | May 23, 2013 | Tyler Durden
    Yesterday afternoon, following the rout in the US stock market, we made a spurious preview (TWITTER) of the true main event: SO SELL OFF IN JGBS TONIGHT? We had no idea how right we would be because the second Japan opened, its bond futures market was halted on a circuit breaker as the 10 Year bond plunged to their lowest level since early 2012, hitting 1% and leading to massive Mark to Market losses for Japanese banks, as we also warned would happen. That was just the beginning, and suddenly the realization crept in that the plunging yen at this...
  • Central Banks Buy Most Gold in 50 Years

    02/16/2013 4:52:14 AM PST · by Diana in Wisconsin · 18 replies
    ETF Report ^ | February 16, 2013 | Sumit Roy
    It was a year of many records for the gold market. No, gold prices didn’t reach an absolute record high in 2012 as some had forecasted, but it was still a year of many records for the gold market, according to the World Gold Council’s latest Demand Trends report. In fact, gold prices averaged $1722 during the last three months of the year, the WGC said. That’s a record quarterly price. Unfortunately for bulls, gold demand on a volume basis didn’t reach a record. Indeed, it fell by 4 percent to 4,406 metric tons. However, on a value basis, annual...
  • Do Western Central Banks Have Any Gold Left???

    11/26/2012 2:13:19 PM PST · by Renfield · 15 replies
    Sprott.com ^ | Eric Sprott & David Baker
    Somewhere deep in the bowels of the world’s Western central banks lie vaults holding gargantuan piles of physical gold bars… or at least that’s what they all claim. The gold bars are part of their respective foreign currency reserves, which include all the usual fiat currencies like the dollar, the pound, the yen and the euro. Collectively, the governments/central banks of the United States, United Kingdom, Japan, Switzerland, Eurozone and the International Monetary Fund (IMF) are believed to hold an impressive 23,349 tonnes of gold in their respective reserves, representing more than $1.3 trillion at today’s gold price. Beyond the...
  • 10 Countries Sitting On Gigantic Piles Of Gold

    10/08/2012 6:47:47 AM PDT · by blam · 21 replies
    TBI ^ | 10-8-2012 | Mamta Badkar
    10 Countries Sitting On Gigantic Piles Of Gold Mamta BadkarOct. 8, 2012, 6:44 AMAP Images Gold prices have been supported by central bank gold purchases. According to the World Gold Council (WGC), global central banks bought 157.5 tonnes of gold in the second quarter, up 63 percent quarter-over-quarter and up 137.9 percent year-over-year. In fact, there is a school of thought that suggests euro zone members use gold as collateral for sovereign debt issuance to keep bond yields. We put together a list of the countries with the biggest official gold holdings as reported by the WGC last week. We...
  • China And Russia Are Ruthlessly Cutting The Legs Out From Under The U.S. Dollar

    09/12/2012 9:19:48 PM PDT · by Tolerance Sucks Rocks · 33 replies
    The Economic Collapse ^ | September 11, 2012 | The Economic Collapse
    The mainstream media in the United States is almost totally ignoring one of the most important trends in global economics. This trend is going to cause the value of the U.S. dollar to fall dramatically and it is going to cause the cost of living in the United States to go way up. Right now, the U.S. dollar is the primary reserve currency of the world. Even though that status has been chipped away at in recent years, U.S. dollars still make up more than 60 percent of all foreign currency reserves in the world. Most international trade (including the...
  • South Korea buys gold; central bank purchases set to rise

    08/05/2012 5:00:03 PM PDT · by DeaconBenjamin · 2 replies
    Reuters ^ | Thu Aug 2, 2012 5:55am EDT | By Christine Kim and Rujun Shen
    South Korea boosted its gold holdings by nearly a third in July, buying 16 tonnes to diversify its massive foreign exchange reserves. South Korea's central bank said it now holds 70.4 tonnes of gold, after paying $810 million last month for the purchase. The increase supported expectations that central banks will remain gold's key buyer as increased volatility in global markets and waning confidence in the U.S. dollar fuel a global drive to divest from the U.S. currency and government debt securities. The Bank of Korea paid about $1,582 per ounce on average, slightly lower than the average spot gold...
  • WORLD CENTRAL BANKS ON 'RED ALERT'

    08/02/2012 1:43:05 PM PDT · by blam · 14 replies
    TBI ^ | 8-2-2012 | Joe Weisenthal
    WORLD CENTRAL BANKS ON 'RED ALERT' Joe Weisenthal Aug. 2, 2012, 4:15 PM Jon Hilsenrath, the world's best central bank reporter, says that the conclusion from this week is that the world's big central banks (the Fed and the ECB, natch) are on 'red alert' over the state of the US economy. From WSJ: Ben Bernanke and Mario Draghi, with words but not yet actions, demonstrated this week that they are on red alert about the global economy. Expectations are now high that Mr. Bernanke's Federal Reserve and Mr. Draghi's European Central Bank will act soon to address those worries....
  • Spanish Activists Seek Arrest of Banksters

    06/22/2012 11:03:19 AM PDT · by freedommom · 4 replies
    wideshut ^ | 06/20/12 | Keelan Balderson
    As Spanish protesters continue to rally outside the headquarters of financial institution Bankia in Madrid, a proactive group within the movement have taken their point further and filed an official criminal complaint against the former management of the bank [1]. Like many other nations around the world the Spanish people face crippling austerity due to the bailing out of the corrupt global financial system, which collectively crashed the world’s economy due to reckless lending and fraudulent investments. Bankia, which was bailed out and partially nationalised like Britain’s RBS, was a causative factor in Spain’s spiraling debt crisis, and in order...
  • STOCKS STAGE GINORMOUS RALLY: Here's What You Need To Know (+287 - QE-3?)

    06/06/2012 1:16:54 PM PDT · by blam · 17 replies
    TBI ^ | 6-6-2012 | Simone Foxman
    STOCKS STAGE GINORMOUS RALLY: Here's What You Need To Know Simone Foxman June 6, 2012Markets across the world staged a major rally today, and central banks are at the center of the chatter. But first, your scoreboard: Dow: 12,398; +271 pts S&P 500: 1,312; +27 pts NASDAQ: 2,841; +63 pts Now for the day's top stories: * Markets began rallying in the pre-market after WSJ's star Federal Reserve reporter John Hilsenrath wrote last night that euro woes, disappointing economic data, and strains in financial markets "have prompted a shift at the Federal Reserve, putting back on the table the possibility...
  • Audio: In A Broken System, You Must Be Your Own Central Bank, Sinclair Tells King World News

    12/09/2011 3:58:22 PM PST · by Razzz42 · 3 replies
    kingworldnews.com ^ | December 9, 2011 | Jim Sinclair Interviewed at KWN
    Entire Audio interview of Jim Sinclair. (No transcript as of yet)
  • Martin Armstrong Speaks About The Collapsing Euro and Monetary System and the Impact of MF Global

    12/09/2011 5:20:56 PM PST · by appeal2 · 1 replies
    www.KerryLutz.com ^ | 12/9/2011 | Kerry Lutz
    Martin Armstrong is back on the show to talk about what's really happening to the world financial markets. He explains how flimsy the entire Euro structure was from the get-go. He advised the leaders to unify Europe both monetarily and fiscally, but they rejected that advice, rightly believing that theexpanded European Union would never have been approved. His only surprise is that the entire structure held together as long as it has. He believes that Germany will be forced to inflate, because no one is willing to accept the consequences of massive deflation, complete with bank failures and widespread unemployment....
  • Gary Wagner of www.TheGoldForecast.com speaks with Kerry Lutz

    12/02/2011 1:56:52 PM PST · by appeal2
    www.KerryLutz.com ^ | 12-2-11 | Kerry Lutz
    Gary Wagner has been a trader and a market technician for over 25 years. In early in 2009 he began to focus his attention on one market: Gold. The yellow metal, gold, began to rally in 2008, but Gary knew the best was yet to come. He believed that gold was poised for an incredible and explosive upside move. Thus the GoldForecast was born. Gary’s daily video newsletter is always interesting and often profitable. He uses a combination of fundamental and technical analysis. We talked about the invention of paper money by the Chinese in the 10th century and their...
  • What Have The Central Banks Of The World Done Now?

    12/01/2011 12:17:50 PM PST · by blam · 12 replies
    TEC ^ | 12-1-2011
    What Have The Central Banks Of The World Done Now?December 1, 2011 The central banks of the world are acting as if it is 2008 all over again. Desperate times call for desperate measures, and right now the central bankers are pulling out all the stops. The Federal Reserve, the European Central Bank, the Bank of England, the Bank of Canada, the Bank of Japan and the Swiss National Bank have announced a coordinated plan to provide liquidity support to the global financial system. According to the plan, the Federal Reserve is going to substantially reduce the interest rate that...
  • Central Banks Net Buyers of Gold for 1st Time in 20 Years (me so love barbarous relic)

    09/19/2011 4:29:23 AM PDT · by TigerLikesRooster · 13 replies
    CNBC ^ | 09/19/11 | Jack Farchy
    Central Banks Net Buyers of Gold for 1st Time in 20 Years Published: Monday, 19 Sep 2011 | 2:55 AM ET By: Jack Farchy, Financial Times European central banks have become net buyers of gold for the first time in more than two decades, the latest sign of how the turbulence in the currency and debt markets has revolutionized the bullion market. The purchases are minuscule compared with the size of the global gold market, but highlight a remarkable turnaround from a wave of heavy selling by European central banks. The role of central banks in the gold market will...
  • Obama and Bernanke: Double-Whammy Disaster

    08/12/2011 9:57:29 AM PDT · by radioone
    American Thinker ^ | August 12, 2011 | C. Edmund Wright
    Interest rate historian and contrarian guru James Grant put the double-whammy actions of Ben Bernanke and President Obama into perfect perspective Thursday when he noted that the Fed had moved past "central banking into central planning." Bingo! Grant went on to say that the Fed was "trying to impose prosperity through manipulation." Bingo again! Think about that phrase -- "to impose prosperity through manipulation." It is brilliantly succinct and accurate in describing what is going on in our nation's economy.
  • Libya: All About Oil, Or All About Banking?

    07/19/2011 4:40:46 PM PDT · by w4women · 8 replies
    Reader Supported News ^ | April 15, 2011 | Ellen Brown
    Several writers have noted the odd fact that the Libyan rebels took time out from their rebellion in March to create their own central bank - this before they even had a government. Robert Wenzel wrote in the Economic Policy Journal: I have never before heard of a central bank being created in just a matter of weeks out of a popular uprising. This suggests we have a bit more than a rag tag bunch of rebels running around and that there are some pretty sophisticated influences.
  • Why the power of the mighty Federal Reserve is finally on the wane

    04/29/2011 2:34:22 AM PDT · by Scanian · 29 replies
    The Telegraph. UK ^ | April 29, 2011 | Jeremy Warner
    An unprecedented press conference was held in Washington on Wednesday – one that should have been convened a long time ago. And no, it wasn't the one to announce publication of Barack Obama's birth certificate, but rather the first of its kind by the US Federal Reserve. Believe it or not, the Fed has never before made itself directly answerable to the fourth estate for its monetary policy decisions. Accountability and explanation have instead been pursued through official statements, speech-giving, congressional committees and selective background briefings. After nearly 100 years at the helm of the US economy, the Fed has...
  • Morning Note: Gold Replacing Dollar as World’s Reserve Currency?

    03/28/2011 8:20:26 PM PDT · by Tolerance Sucks Rocks · 4 replies
    CNBC ^ | March 24, 2011 | Catherine Holahan
    $105 per barrel oil. Cotton prices at record levels. Food prices at 2008 highs. Typically, such commodity price increases would send central banks running to the U.S. Dollar to secure the value of their savings. After all, the dollar has been the reserve currency since World War I. But not this time. Central banks are shedding dollars [DXC1 76.48 0.105 (+0.14%) ], reducing their holdings by about $9 billion in previous quarter, according to Nomura Securities’ Jens Nordvig, global head of G10 FX Strategy. What are they buying instead? Gold [GCCV1 1417.40 -2.50 (-0.18%) ]. The yellow metal hit a...
  • Ambrose Evans-Pritchard Apologises for Being Wrong on QE and Stimulus Spending

    09/28/2010 10:46:51 AM PDT · by Errant · 22 replies
    The Oracle ^ | 28 September, 2010 | Nadeem Walayat
    Ambrose Evans-Pritchard the head economic poncho at the Telegraph now nearly 2 years from starting his mantra of deficit spending stimulus to prevent a debt deleveraging deflationary depression turns around and says that he has been wrong all along, that central banks such as the US Fed are focused on creating inflation rather than preventing deflation..."I apologise to readers around the world for having defended the emergency stimulus policies of the US Federal Reserve, and for arguing like an imbecile naif that the Fed would not succumb to drug addiction, political abuse, and mad intoxicated debauchery, once it began taking...
  • Basel III Gutted, Delayed As Even Existing Regulatory Regime Too Burdensome.....

    07/27/2010 4:46:41 AM PDT · by TigerLikesRooster · 1 replies
    Zero Hedge ^ | 07/27/10 | Tyler Durden
    Basel III Gutted, Delayed As Even Existing Regulatory Regime Too Burdensome For An Insolvent Banking Industry Tyler Durden on 07/27/2010 03:56 -0500 In light of recent bombastic statements by priests of Keynesian fundamentalism that European banking is one big, non-dysfunctional, even healthy family, it would have been the logical thing that the Basel Committee on Banking Supervision would if not tighten terms on proposed Basel III implementation, then at least keep them as is. Why is why news that the recently proposed adjustments to Basel III which not only delayed implementation of the "regulatory" framework by many years, allowing banks...
  • Central banks join gold rush (as gold hits a new record again !)

    06/19/2010 1:44:27 PM PDT · by SeekAndFind · 7 replies · 407+ views
    CNN MONEY ^ | 06/19/2010 | Annalyn Censky
    Foreign governments have been getting in on the recent gold rush, driven by continued fears about Europe's debt crisis and the pace of the global economic recovery. Those concerns have been propelling the precious metal to record highs over the past 18 months. In fact, gold posted a new intra-day high Friday, when it reached $1,260.90 an ounce. A day earlier, it reached a fresh record high closing price of $1,248.70 an ounce. Last year, foreign central banks were net buyers of gold for the first time since 1997. India, China and Russia have been the biggest buyers. And more...
  • Central banks to restore currency swaps

    05/09/2010 9:37:10 PM PDT · by bruinbirdman · 15 replies · 516+ views
    The Financial Times ^ | 5/10/2010 | James Politi
    Central banks around the world on Sunday night announced they would restore currency swap agreements that were introduced during the financial crisis, in an attempt to ease the strain on banks caused by the European sovereign debt crisis. The move by the Federal Reserve, the European Central Bank, the Bank of England, the Bank of Canada, and the Swiss National Bank was part of an audacious coordinated package by global authorities to combat escalating financial market tensions, including an emergency funding facility worth as much as €720bn in loan guarantees and credits. The Bank of Japan was meeting on Monday...
  • PBOC(China) may hike interest rates in second quarter: report

    04/06/2010 10:23:12 PM PDT · by Cheap_Hessian · 204+ views
    MarketWatch ^ | April 7, 2010 | Chris Oliver
    HONG KONG (MarketWatch) -- China's central bank could raise interest rates in the current quarter, according to a local media report. The rate hike is being considered as economic growth in the first quarter may exceed 11%, according to reports which cited People's Bank of China adviser Li Daokui in comments made to the China Securities News.
  • Australia rate decision still a mystery

    04/05/2010 6:32:12 PM PDT · by Cheap_Hessian · 1 replies · 173+ views
    MarketWatch ^ | April 5, 2010
    LOS ANGELES (MarketWatch) -- Markets and economists remain uncertain if and how much the Reserve Bank of Australia will raise its policy interest rate at its meeting later Tuesday. Reuters reported that its poll of 19 economists showed a 60% chance the RBA will hike rates by a quarter point, while interbank futures as of April 1 show a 54% chance, down from an implied probability of 60% early last week. The RBA, whose decision is expected at 12:30 a.m. U.S. Eastern time, raised its policy cash rate by a quarter point at each of its meetings in October-December of...
  • Race to the bottom with G4 currency rhetoric

    03/10/2010 6:38:48 AM PST · by Cheap_Hessian · 181+ views
    Reuters ^ | March 10, 2010 | Mike Dolan
    (Reuters) - With economic policy stimuli already at full tilt, no government wants an overvalued exchange rate to slay recovery, and the rival "soft currency" needs are producing some elaborate rhetorical jousting. The problem is that major exchange rates -- at least those between the developed G4 economies of the United States, euro zone, Japan and Britain -- are largely market determined and difficult to control. There's no magic wand to conjure up devaluation and the monetary and fiscal levers that could possibly engineer a free-floating depreciation are near exhausted. G4 interest rates remain near zero. New money and liquidity...
  • Australia raises interest rates to 4%

    03/02/2010 4:10:36 AM PST · by Cheap_Hessian · 4 replies · 350+ views
    BBC News (UK) ^ | March 2, 2010
    Australia's central bank has raised interest rates, for the fourth time since October, as it seeks to cool its growing economy. The increase, to 4% from 3.75%, was widely expected by economists. Australia was the only major economy to avoid recession, and the first to raise rates from 50-year lows as the economic crisis eased.
  • Another Australia rate hike likely, though timing uncertain

    02/16/2010 11:52:55 AM PST · by Cheap_Hessian · 1 replies · 131+ views
    MarketWatch ^ | February 15, 2010 | Michael Kitchen
    LOS ANGELES (MarketWatch) - The surprise decision by Australia's central bank to leave its policy interest rate unchanged earlier this month doesn't preclude another hike in the near future, according to policy-meeting minutes released Tuesday. The minutes from the Feb. 2 meeting of the Reserve Bank of Australia indicated further increases for the benchmark cash rate are likely, though not necessarily at the next meeting on March 2. "Members expected that, if economic conditions continued to improve as expected, further increases in the cash rate were likely to be necessary. But they did not regard that outlook as requiring an...
  • Investment Outlook, Let's Get Fiscal

    02/07/2010 1:47:05 PM PST · by Comrade Brother Abu Bubba · 11 replies · 354+ views
    PIMCO (Pacific Investment Management Group) ^ | January 2010 | William Gross
    Investment Outlook, Let's Get Fiscal If 2008 was the year of financial crisis and 2009 the year of healing via monetary and fiscal stimulus packages, then 2010 appears to be the year of “exit strategies,” during which investors should consider economic fundamentals and asset markets that will soon be priced in a world less dominated by the government sector. The problem that the U.S. Fed’s “exit” poses: Fiscal 2009 deficit totaled nearly 12% of GDP, requiring over $1.5 trillion of new debt to finance. The Chinese bought a little ($100 billion), but as shown in Chart 2, foreign investors as...
  • Eric Sprott On How Central Banks Are Setting The Stage For The Next Big Move In Gold

    01/31/2010 8:05:51 AM PST · by FromLori · 19 replies · 1,049+ views
    ZeroHedge ^ | 1/30/10 | Tyler Durden
    A brief look at the contentious gold/central bank history as it is about to rhyme all over again: The Federal Reserve System was created in 1913 on a promise of stabilizing the banking system. What followed instead was an unprecedented growth in fractional reserve banking, as well as the money supply, which helped fuel the roaring 20’s. The aggressive money printing created inflated values in bonds and stocks, which peaked in 1929. When the market began its precipitous slide, and the public began to realize that stock and bond values were artificially high, the populace began to convert its cash...
  • Fed Publishing Mathematical Gibberish To Hide Balance Sheet Secrets

    01/13/2010 4:15:19 PM PST · by blam · 2 replies · 265+ views
    The Market Oracle ^ | 1-13-2010 | Mike Shedlock
    Fed Publishing Mathematical Gibberish To Hide Balance Sheet Secrets Politics / Central Banks Jan 13, 2010 - 11:17 AM By: Mike Shedlock The Fed is pulling out all stops to defend its secrets, including publishing self-serving mathematical gibberish. Please consider the St. Louis Fed article on the Social Cost of Transparency. Unless you are an academic wonk, you will be stymied by pages that look like this ... There are 24 pages of such nonsense with titles like 2.2 Private Information and Full Commitment 2.3 Private Information and Limited Commitment 3.2.1 Decision Making in the Day 3.2.2 Decision Making at...
  • The Gang that Couldn't Shoot Straight: Central Bankers and Gold

    12/03/2009 7:01:36 AM PST · by danielmryan · 6 replies · 450+ views
    Seeking Alpha ^ | December 3, 2009 | Joseph L. Shaefer
    Numerous articles on SA have talked about the “cabal” that has kept gold from rising over the years. If it is a cabal, it is truly the equivalent of The Gang That Couldn’t Shoot Straight, The Italian Marching Band, and the US Post Office and Treasury Department all rolled into one. Why seek conspiracy when simple stupidity will suffice? These guys just couldn't get it right...
  • Panicked Gold Buying Forces Vietnam To Devalue Currency

    11/25/2009 6:31:45 AM PST · by danielmryan · 32 replies · 933+ views
    The Business Insider ^ | November 25, 2009 | Vincent Fernando
    Vietnam has been forced to devalue its currency, the dong, for the third time since June 2008. The country's pegged exchange rate will shift to 17,961 dong per dollar vs. 17,034 previously. The Vietnamese central bank will also hiking interest rates to 8% from 7% in an attempt to control inflation.
  • The Fed Is Bailing Out Every Bank In The World

    11/21/2009 6:21:04 AM PST · by FromLori · 19 replies · 758+ views
    The Business Insider ^ | 11/21/09 | John Mauldin
    And setting us up for a massive stock-market crash, to boot. Where the Wild Things Are is a beloved children's book and now a beautiful movie. But in the investment world there are really scary wild things lurking about in the hidden recesses of the economic landscape. Today we look at one of the unintended consequences of the Federal Reserve's low interest rate policy. For quite some time, I have been arguing that we are faced with no good choices, not just in the US but in the entire "developed" world. I see a low-growth, Muddle Through world over the...
  • Latest Bullish Sign for Gold: Central Banks Are Big Buyers

    11/20/2009 12:59:25 PM PST · by FromLori · 7 replies · 488+ views
    CNBC ^ | 11/20/09 | By: Jeff Cox
    Gold prices, which have already soared to record levels in recent weeks, could get a further boost from a new investor: central banks. Several central banks are joining average investors in betting that weak currencies—particularly the US dollar—could be a friend to the gold trade for quite some time. AP After a weak summer, gold has rallied strongly over the past three months on the belief that that the dollar will continue to fall until the US economic recovery is on more solid footing. For Rob Lutts, CIO of Cabot Management in Salem, Mass., bull markets such as gold's run...
  • BlackRock says c.banks to be net buyers of gold

    11/16/2009 4:15:41 PM PST · by FromLori · 31 replies · 718+ views
    Reuters ^ | 11/16/09
    ntral banks will be net buyers of gold this year as they diversify away from the U.S. dollar, marking a reversal of a decades-old trend, global commodities investment fund BlackRock said on Monday in comments that helped drive bullion to fresh record highs. Investment in gold by central banks has picked up recently, with India buying 200 metric tons from the International Monetary Fund, and Taiwan's central bank is studying whether to raise the amount of gold in its forex reserves, with China and South Korea also debating the issue. BlackRock is one of the world's largest fund managers, boasting...
  • The Dollar as an Old Hag

    10/12/2009 10:00:35 AM PDT · by FromLori · 7 replies · 464+ views
    Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen. Policy makers boosted foreign currency holdings by $413 billion last quarter, the most since at least 2003, to $7.3 trillion, according to data compiled by Bloomberg. Nations reporting currency breakdowns put 63 percent of the new cash into euros and yen in April, May and June, the latest Barclays Capital data show. This doesn't put the same pressure on the dollar as panic selling out of the dollar, but it is not a positive. The big question is how will Treasury find funding for...
  • Central banks keep rates unchanged

    08/06/2009 10:06:19 AM PDT · by Cheap_Hessian · 1 replies · 149+ views
    Yahoo Finance (AP) ^ | August 6th, 2009 | Jane Wardell and George Frey
    LONDON (AP) -- The Bank of England surprised markets on Thursday with a significant expansion of its program to boost the money supply and support growth, even as it and the European Central Bank kept official interest rates steady at record lows. The move by the British central bank to boost its so-called quantitative easing program by 50 billion pounds ($84 billion) to 175 billion pounds ($295 billion) garnered the main attention in Europe, underscoring official caution about recent signs of an economic recovery. As the ECB shied away from announcing any new measures on "enhanced credit support," the ECB's...
  • Central banks succumb again to bullion’s lure(gold)

    05/07/2009 11:28:12 PM PDT · by TigerLikesRooster · 13 replies · 741+ views
    FT ^ | 05/06/09 | Javier Blas and Patti Waldmeir
    Central banks succumb again to bullion’s lure By Javier Blas in London and Patti Waldmeir in Shanghai. Published: May 6 2009 23:31 | Last updated: May 6 2009 23:31 Ten years ago on Wednesday the UK Treasury sent gold prices tumbling when it announced it would sell a chunk of its gold reserves. In a matter of weeks prices plunged to a 22-year low of $250 a troy ounce and, over the course of that year, central banks from Australia and Switzerland to the Netherlands announced plans to sell a large slice of their bullion. “There was a feeling that...
  • Walker's World: A tale of two banks

    04/13/2009 12:01:38 PM PDT · by T-Bird45 · 11 replies · 1,246+ views
    UPI ^ | 4/13/09 | Martin Walker
    Tucked away inside the small print of the latest Federal Reserve report on its balance sheet is a jaw-dropping nugget of information. A year ago, American banks had $1.8 billion on deposit with the Fed above and beyond the regulatory requirements. This month, these excess deposits have soared to $771.2 billion.
  • Central Banks Expand Currency Swaps

    04/06/2009 9:10:57 AM PDT · by lainie · 23 replies · 532+ views
    NYT ^ | 4-7-2009 | Jack Healy
    Central banks in the United States, Europe, Britain and Japan announced an agreement on Monday that could provide some $287 billion in liquidity to the Federal Reserve, in the form of currency swaps. Under the arrangement, the Fed could draw on these lines to provide more liquidity to financial institutions, this time in the form of foreign currency. The announcement was the latest in a series of coordinated efforts between the Federal Reserve and other central banks to try to unlock credit markets, restore normal lending and raise confidence in the financial system. “Should the need arise, euro, yen, sterling...
  • Foreign central banks aren’t going to finance much of the 2009 US fiscal deficit

    04/02/2009 1:26:53 AM PDT · by TigerLikesRooster · 5 replies · 499+ views
    Follow the Money ^ | 03/31/09 | Brad Setser
    Foreign central banks aren’t going to finance much of the 2009 US fiscal deficit; their reserves aren’t growing any more (the q4 2008 COFER data) Posted on Tuesday, March 31st, 2009By bsetserThe latest COFER data doesn’t show much change in the dollar’s share of global reserves: the dollar accounted for 64% of the reserves of countries that report data to the IMF at the end of 2008, exactly the same share as at the end of 2007. The dollar’s share of the reserves of advanced economies rose just bit, going from 66.9% at the end of 2007 to 68.1% at...
  • Central bankers move into uncharted territory

    03/04/2009 5:40:04 PM PST · by unclebankster · 2 replies · 206+ views
    National Post ^ | March 4, 2009 | Paul Vieira
    OTTAWA -- Central bankers from the major industrialized countries have moved in lockstep to flood financial markets with cash in their battle against a decaying global economy, but they do so with little experience to draw upon, heightening the risk that this grand effort could fail. “Independent measures being taken in a contemporaneous fashion implies co-ordination,” says Michael Woolfolk, New York-based senior currency strategist at Bank of New York Mellon. “There is nothing perverse or desperate about it. It is just that they are running out of monetary policy room to stimulate the economy.” Mr. Woolfolk’s analysis emerges after Mark...
  • Dancing on a Precipice: The Tenuous Balance in Global Finance

    12/31/2008 1:54:40 AM PST · by TigerLikesRooster · 2 replies · 314+ views
    Dancing on a Precipice: The Tenuous Balance in Global Finance /snip Why didn’t the total collapse in private flows lead financing for the US current account deficit to dry up? That, after all, is what happened in places like Iceland — and Ukraine. My explanation is pretty straightforward. Central banks were the main source of financing for the US deficit all along. Setting Japan aside, the big current account surplus countries were all building up their official reserves and sovereign funds — and they were the key vector providing financing to the deficit countries." --------------------------------------- The implications of this are...
  • Newstopia Explains the Reserve Bank

    10/11/2008 5:51:27 AM PDT · by all the best · 4 replies · 328+ views
    youtube ^ | October 1, 2008 | Newstopia
    Here Australia's answer to Jon Stewart, Shaun Micallef interviewing the Reserve Bank of Australia's Tony Froth (remember then Fed Chair Alan Greenspan's July 2005 comment that "the apparent froth in the housing markets appears to have interacted with evolving practices in mortgage markets") trying to get to the bottom of it.
  • Asian central banks cut rates

    10/08/2008 9:02:01 PM PDT · by TigerLikesRooster · 2 replies · 230+ views
    FT ^ | 10/09/08 | Kathrin Hille in Taipei, Tom Mitchell in Hong Kong and Song Jung-a in Seoul
    Asian central banks cut rates By Kathrin Hille in Taipei, Tom Mitchell in Hong Kong and Song Jung-a in Seoul Published: October 9 2008 02:27 | Last updated: October 9 2008 04:16 Central banks in Taiwan, South Korea and Hong Kong cut interest rates on Thursday in steps that closely follow America’s and Europe’s policy response to the financial crisis. In an extraordinary policy meeting Thursday morning just two weeks after its last rate cut, which had reversed course following a four-year rate raising cycle, Taiwan’s Central Bank of China lowered the benchmark discount rate to 3.25 per cent from...
  • Federal Reserve, central banks announce operations to address funding pressures over quarter end

    09/25/2008 11:10:51 PM PDT · by HAL9000 · 5 replies · 406+ views
    federalreserve.gov ^ | September 26, 2008 | Federal Reserve
    For release at 2:00 a.m. EDT Central banks have been employing coordinated measures designed to address the pressures in global money markets. Most recently, central banks have acted together to inject dollars into the overnight markets. Using their reciprocal currency arrangements (swap lines) with the Federal Reserve, the Bank of England, the European Central Bank (ECB), and the Swiss National Bank today are announcing the introduction of operations to provide U.S. dollar liquidity with a one-week maturity. These operations are designed to address funding pressures over quarter end. Central banks continue to work together closely and are prepared to...