Central Banks

Kremlin: If The US Tries To Hurt Russia’s Economy, Russia Will Target The Dollar

by Wolf Richter •  • Comments Off on Kremlin: If The US Tries To Hurt Russia’s Economy, Russia Will Target The Dollar

The first official warning shot was fired before an all-out assault on the dollar system begins. Not by a Putin advisor that can be brushed off, but by Alexey Ulyukaev, Russia’s Minister of Economy and former Deputy Chairman of the Central Bank. A major escalation.

The Relentless, Systematic Tear-Down Of The Dollar Hegemony

by Wolf Richter •  • Comments Off on The Relentless, Systematic Tear-Down Of The Dollar Hegemony

How long before the dollar surrenders its status as world reserve currency and number-one payment currency to the Chinese yuan and to that other currency everyone loathes?

The Madness of Abenomics In One (Crazy) Chart

by Wolf Richter •  • Comments Off on The Madness of Abenomics In One (Crazy) Chart

Abenomics, a democratically elected economic religion, was to save Japan. But the plan has already gone to heck. Not in small increments over the years with minor ups and downs, but in relentless month-to-month leaps whose viciousness surprised even the deep cynic in me.

The Mind-Game Of “Fixing” Europe’s Big Zombie Banks

by Wolf Richter •  • Comments Off on The Mind-Game Of “Fixing” Europe’s Big Zombie Banks

Danièle Nouy, chair of the ECB’s newfangled bank regulator that doesn’t exist yet, had a term for it: “do whatever has to be done” so that the banking sector “is seen as sound and safe and transparent.” Is seen as…. Smoke and mirrors.

German High Court Blows Up Euro, Says ‘Oh Wait,’ Abdicates

by Wolf Richter •  • Comments Off on German High Court Blows Up Euro, Says ‘Oh Wait,’ Abdicates

The ECB’s money-printing and bond-buying promise, lovingly dubbed Outright Monetary Transactions, became the bailing wire and duct tape that has kept the Eurozone together to this day. Turns out, it’s illegal under the EU treaties and unconstitutional in Germany.

Crazy Abenomics Orgy In Japan Is Ending Already – Pounding Hangover Next

by Wolf Richter •  • Comments Off on Crazy Abenomics Orgy In Japan Is Ending Already – Pounding Hangover Next

Kudos to the Bank of Japan. Its heroic campaign to water down the yen has borne fruit. The people may not have noticed it because it’s not indicated on their bank and brokerage statements, but 20% of their magnificent wealth has gone up in smoke in 2013.

Why Japan’s Trade Fiasco Worries Me So Much

by Wolf Richter •  • Comments Off on Why Japan’s Trade Fiasco Worries Me So Much

According to Japan’s state religion of Abenomics, devaluing the yen would boost exports and cut imports. The resulting trade surplus would jumpstart the economy and induce Japan Inc. to invest at home. It would save Japan. But the opposite is happening.

So This Isn’t Exactly A Rosy Outlook For 2014, Or Something

by Wolf Richter •  • Comments Off on So This Isn’t Exactly A Rosy Outlook For 2014, Or Something

Central banks rule! We’ve seen it in 2013. They’ve accomplished the impossible: separating stock markets from the economies they’re based on. But in 2014, the US and China are trying to unwind these crazy policies – without taking down the entire global economy.