Wolf Richter

Tech Companies And Their Love Affair With NSA and CIA

Keyhole Inc., a venture-capital funded startup, was acquired by Google in 2004. Its product became Google Earth. Its technology filtered into Google Maps and Google Mobile. One of the venture-capital investors? The CIA. It didn’t ruffle any feathers at the time. But now we have NSA leaker Edward Snowden and his media blitz.

One Part Of Japan’s Abenomics Salvation Is Already A Fail

Japan’s make-or-break economic policies have been named lovingly after Prime Minister Shinzo Abe – lovingly, because if they fail, he gets to carry an albatross called Abenomics around his neck for the rest of his life. And one of the “three arrows” of Abenomics is already headed that way: goosing the economy through a frontal attack in the Currency War.

Currency War Rattles Brazil, Wakes Up the People

Fed Chairman Bernanke and his ilk refuse to see the connection. They’re too busy ogling inflation in the US that is suspiciously low. But China has its eyes riveted on the revolt in Brazil. Like all revolts, it’s about deep-seated issues and inequalities, but the spark that lit it – after inflation had made life too expensive – was an increase in bus fares.

Biggest Bond Bubble In History Is Turning Into Carnage

“We’ve intentionally blown the biggest government bond bubble in history,” confessed Andy Haldane, Director of Financial Stability at the Bank of England. The bursting of that bubble was a risk he felt “acutely.” He saw “a disorderly reversion” as the “biggest risk to global financial stability.” Seatbelts are being fastened; the clicks can be heard around the world.

France Torpedoes American Movies, Shoots Itself In Foot

France vetoed the launch of free-trade negotiations between the EU and the US, though France has racked up a big trade surplus with the US and has much to lose. The problem: cultural protectionism. It wants “an explicit exclusion of the audio-visual sector.” A catch phrase for American movies! And a theme that is in the DNA of the French political class.

Bank Of Japan Machinations Crash Into Reality

The Japanese stock market has become a case study of central-bank manipulations, and of what happens eventually as reality cannot be eliminated forever. What you hear is a giant hissing sound. What you get is capital destruction and wealth transfer.

Akie Abe, Shinzo Abe’s Antinuclear Wife

Abenomics has its detractors – in peculiar places – and Prime Minister Shinzo Abe must be experiencing some interesting pillow talk. His wife has attacked one of the major components of his economic policies, the nuclear power industry.

Germany Grapples (Again) With The Choice Between Its Constitution And The Euro

During the hearings before the German Constitutional Court, Finance Minister Schäuble, perhaps unwittingly, put his finger on yet another fatal flaw of the Eurozone: a central bank that could bail out speculators and pile the resulting losses on taxpayers of other countries, no questions asked, whenever it felt like it, without controls – “to save the euro,” as it were.

The ECB’s Forked-Tongue Policy To Save The Euro

In theory, Germany’s Constitutional Court could throw a monkey-wrench into the efforts to keep the Eurozone duct-taped together; it could rule against the ECB’s money-printing and bond-buying mechanism, lovingly dubbed OMT, that would create a “brave new Huxley-world of the unlimited debt,” a world where “money is no longer earned but printed.”

The Unthinkable Happens: A Former TBTF Bank Chief Goes to Jail

Contributed by Don Quijones: Just when you thought the concept of universal justice was dead, a courageous Spanish judge, Elpidio José Silva, did what no other judge in the Western world, bar Iceland, dared to do: He refused to grant bail to a former top banker, sending him to prison before facing trial for his alleged role in Spain’s financial crisis.