Central Banks

No Money, No Problem, Bank of Japandemonium Takes Care Of It

by Wolf Richter •  • Comments Off on No Money, No Problem, Bank of Japandemonium Takes Care Of It

Just before Christmas when no one was supposed to pay attention, Japanese Prime Minister Shinzo Abe and his ministers agreed on a budget for fiscal 2014. It’s a doozy. Instead of slowing down the fiscal fiasco, Abenomics is speeding it up. With an elegant solution.

This Ends In A “Planned Economy” – Bundesbank President

by Wolf Richter •  • Comments Off on This Ends In A “Planned Economy” – Bundesbank President

When Jens Weidmann, President of the emasculated Bundesbank, speaks, central bankers and money printers worldwide stuff wax into their ears. “Caution,” he started out, “the euro crisis is far from over.” Then he committed central-bank heresy.

Mother Of All Currency Wars in One Chart: Dollar Vs. Swiss Franc

by Wolf Richter •  • Comments Off on Mother Of All Currency Wars in One Chart: Dollar Vs. Swiss Franc

The destruction of the dollar – so clearly visible against the Swiss Franc – took on a sudden virulent form in 1970. It has been going on just about all my life. And it’s still going on. When even the Swiss couldn’t handle it anymore, they too jumped into the currency war.

Why Bitcoin Is Such Dizzying Fun

by Wolf Richter •  • Comments Off on Why Bitcoin Is Such Dizzying Fun

Even as the world was still desperately trying to figure out what exactly Bitcoin is, it was inducted into the Wall Street hype factory today by an analyst who touted it as the best thing since sliced bread – just when all heck was re-breaking out.

Japan Is Used To Natural Disasters, But This One Is Man-Made

by Wolf Richter •  • Comments Off on Japan Is Used To Natural Disasters, But This One Is Man-Made

The dogfight over Japan’s biggest problem, its gargantuan government deficit, entered its annual ritual of leaks and pressure tactics that usually lead to a pre-Christmas draft budget with an even bigger deficit. But this time, it’s different. Very different.

Bank of Japandemonium Killed And “Sacrificed” The JGB Market

by Wolf Richter •  • Comments Off on Bank of Japandemonium Killed And “Sacrificed” The JGB Market

“The JGB market is dead,” announced with finality Tetsuya Miura, chief bond strategist at Mizuho Securities, one of Japan’s 23 primary dealers that have to bid on government securities. It had been “sacrificed” by the Bank of Japan, said another industry heavyweight.

OMG, Those “Who Truly Rule The World”

by Wolf Richter •  • Comments Off on OMG, Those “Who Truly Rule The World”

Most powerful person in the world? Putin! Sez Forbes. At least, it wasn’t Merkel, who has been throwing her weight around when she found out that her Handy had been bugged by the NSA, just like our cellphones. We have to take it; she gets to make a big stink and gripe to Obama on the (bugged) phone.

What Will It Take To Blow Up The Entire Japanese Banking System? (Not Much, According To The Bank of Japan)

by Wolf Richter •  • Comments Off on What Will It Take To Blow Up The Entire Japanese Banking System? (Not Much, According To The Bank of Japan)

Buried in the Bank of Japan’s Financial System Report is a gorgeous whitewash doozie: if interest rates rise by 1 percentage point, it would cause ¥8 trillion ($82 billion) in losses across the banking system. Banks would be able to digest it. The system is safe. But then the report tallied up the losses of a 3 percentage point rise.

France Clamors for Currency War, Bundesbank Warns Of Housing Bubble

by Wolf Richter •  • Comments Off on France Clamors for Currency War, Bundesbank Warns Of Housing Bubble

The euro, its dexterous management, the “whatever-it-takes” guarantees by ECB President Draghi, the trillions being shifted around to prop up banks and governments – all these efforts to keep the Eurozone duct-taped together have hit countries differently. Including France and Germany. They’re shooting at each other now, and hitting the ECB.

Delirious Construction And Property Bubbles Prop Up China GDP (And Buy Social Stability For Now)

by Wolf Richter •  • Comments Off on Delirious Construction And Property Bubbles Prop Up China GDP (And Buy Social Stability For Now)

China’s economy grew barely above the government-decreed minimum of 7.5%. Deep frustrations simmer beneath the surface and can explode at any time. To maintain social stability, the government douses the land with money. Growth at any cost. But the results are majestic property and construction bubbles – and they can’t be inflated forever.