Tag Archive: European central bank

Financial Revolution: ECB Blames You For Negative Interest Rates

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

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

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

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

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

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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The Fairy Tale of Rising Competitiveness in the European Periphery

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

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?

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

  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

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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