Tag Archive: European central bank

Financial Revolution: ECB Blames You For Negative Interest Rates

2016-05-03

Simon Black of the Sovereign Man explain how revolutions start. Using negative rates, the ECB blames the own people that it is saving too much. But revolutions can also start in the financial system and lead to its collapse.

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Gold And Negative Interest Rates

2016-04-30

by Tyler Durden

2016-04-30

Submitted by Dan Popescu via Acting-Man.com, The Inflation Illusion We hear more and more talk about the possibility of imposing negative interest rates in the US. In a recent article former Fed chairman Ben Bernanke asks what tools the Fed h...

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A Take On How Negative Interest Rates Hurt Banks That You Will Not See Anywhere Else

2016-04-14

by Reggie Middleton

2016-04-14

The Bank of Japan and the ECB are assisting me in teaching the world's savers, banking clients and corporations about the benefits of blockchain-based finance for the masses. How? Today, the Wall Street Journal published "Negative Rates: How One Swis...

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The SNB and the Forex Rigging Irony

While Forex banks, traders, and other institutions are being blamed for market rigging, the Swiss National Bank can publish reports about its own market rigging, but instead of being a scandal, it's economic data. That's because the vast majority do...

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BoJ Adopts Negative Interest Rates, Fails To Increase QE

2016-01-29

by Tyler Durden

2016-01-29

Well that did not last long. After initial exuberance over The BoJ's wishy-washy decision to adopt a 3-tiered rate policy including NIRP, markets have realized that without further asset purchases (which were maintained at the current pace), there is...

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The Swiss National Bank: Switzerland’s central bank makes a massive loss

2015-08-01

by The Economist

2015-08-01

Swiss National Bank net income, Swiss Francs

ON FRIDAY, the Swiss National Bank (SNB), Switzerland’s central bank, reported second quarter losses of SFr20 billion ($20 billion). Following an equally bad first three months of the year, the SNB’s losses so far for 2015 now amount to a whopping SFr50.1 billion, equivalent to 7.5% of Switzerland's GDP.

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Free exchange: Broke but never bust

2015-01-22

by The Economist

2015-01-22

CONTEMPORARY central banking is a strongbox of oddities. Deposits, which normally pay interest, can now incur a charge. Investments in government debt, which normally offer a return, give a negative yield. Faced with this weirdness central banks are trying to respect some cardinal rules of finance, with the Swiss National Bank (SNB) and the European Central Bank (ECB) taking steps to protect themselves from losses and ensure that their...

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Because They Knew What They Were Doing: The Parallels between European and SNB Leaders

Similarly as European leaders knew what they were doing with the euro, namely introducing a not feasible currency, Swiss National Bank did between 2005 and 2008, namely the absolutely wrong thing.

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The Fairy Tale of Rising Competitiveness in the European Periphery

2012-12-17

by George Dorgan

2012-12-17

In our post we look on two questions concerning competitiveness for the European periphery: When will local production be cheaper than imported products? Do people have the money to buy these local products? It does not help reducing labor costs if local production costs still more than imported products. The second aspect is: even if …

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Euro Morons: Hyperinflation Successfully Avoided, Stagflation Successfully Created

2012-12-01

by George Dorgan

2012-12-01

Keeping Greece in euro zone, eurocrats or better “euro morons” have successfully avoided a weak drachma and a following Greek hyperinflation. Instead they successfully created stagflation. Currently European HICP inflation is at 2.5%, far above the max. 2.0% official ECB mandate, but the euro is becoming weaker and weaker. German salaries are rising with 2.6% …

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Did the SNB Front-Run ECB Decisions Far Ahead of Hedge Funds?

2012-10-30

by George Dorgan

2012-10-30

We think that the Swiss National Bank invested far more in Italian and Spanish bonds than analysts like Standard and Poor’s expected and was able to front-run ECB decisions. This new style of hedge funds, formerly called “central banks”, can refinance at zero percent and is able to show a lot better performance than the …

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The Big Swiss Faustian Bargain: Differences between SNB, ECB and Fed Money Printing Explained

2012-09-03

by George Dorgan

2012-09-03

In this post we show that the risks the Fed, the ECB and the Bundesbank incur are far smaller than the one the Swiss SNB takes. The Fed has “just” an inflation risk, that could cost 200 billion US$, 1.2% of US GDP. The ECB and Bundesbank have the risk that the euro zone splits … Continue reading »

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The End of ECB Rate Cuts or Draghi against Weidmann to be Continued..

2012-08-30

by George Dorgan

2012-08-30

Even in the unlikely case of a fiscal union, the conflict “Draghi against Weidmann”, between the ECB and the Bundesbank will continue for years. The ECB mandate and european inflation figures do not allow for excessive ECB rate cuts or for state financing via the printing press, but Draghi wants to help his struggling …

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Jürgen Stark’s resignation and the ECB 2005 warning about labor cost divergence in the Euro-zone

2011-12-18

by George Dorgan

2011-12-18

The Wirtschaftswoche reports about the real reasons of ECB Chief economist Jürgen Stark’s resignation. The reasons are rather political, namely a protest against European governments:

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