The central banks of the three developed economies – the U.S., the Eurozone and Japan – have expanded their balance sheets tremendously over the past decade. More than $12.2 trillion of financial assets now sit idle on their balance sheets. One of the consequences is that the central bank’s traditional toolkit has become obsolete. Central bankers count on one tool and one tool only. However, the effectiveness of this tool, especially in times of high and increasing inflation, is... »
After $12.2 Trillion of QE, Now What?
February 21 2017
The Alternative Truth of the ECB… and All the Consequences This Entails
February 14 2017
Lately, I had a sensation that the European Central Bank (ECB) is trying to disguise and deny at any cost the fact that the Eurozone economy is in pretty good shape.
Board members of the central bank often begin their conferences or interviews by acknowledging that things are getting better, but they almost immediately follow up with a comment that slower growth is a real possibility. We can also observe this unnatural pessimism when they speak about future monetary policy. They often repeat... »
This Is How Trump’s Protectionism Will Push the U.S. Economy of the Cliff
February 8 2017
President Donald Trump is not wasting any time: the negative trade deficit is public enemy number one. Not only did Trump show that he means business by declaring war on the Mexicans as he threatened to impose an import tax on Mexican goods, the same fate awaited China and later Germany: all... »
Deutsche Bank Manipulates Gold Price
February 1 2017
After manipulating the silver price for many years, it recently came to light that Deutsche Bank has also manipulated the gold price. At least, that is what happened if were to believe the multitude of gold blogs. Deutsche Bank was sued because of an alleged manipulation of the Gold Fix and the troubled German bank decided to settle the case. With the risk of being called stupid, evil or a tool, I will tell you a little secret: Deutsche Bank is innocent. The idea that Deutsche Bank “manipulated the gold price” is simply wrong. It is a mere attempt to justify outlandish conspiracy theories.... »