Fed, ECB take positions to face the next global financial crisis; the Brits uncovered

The appointment of Jerome Powell as the next head of the US central bank, the famous Fed, is a reassurance to the financial world that the giant lenders will continue being favored by ample and very cheap money. Last Thursday, Donald Trump, the American President didn’t dare to change the cautious approach to monetary policy. […]

Extra mild ECB tapering of QE and zero interest rates keep euro low

Last Thursday, Mario Draghi, the President of the European Central Bank performed again his superb balancing act, between the needs of the South and the demands of the North. He led the Governing Council of ECB, Eurozone’s most powerful body, to map the exit road from the extraordinary monetary measures (Quantitative Easing) state as frictionlessly […]

Elections results: Austerity’s black to prevail in the new multicolored German government

During the past ten years, Germany has become a politically boring country and yesterday’s election is not going to change that, despite the loss of around one million votes for the Chancellor’s party. Angela Merkel’s win came to none’s surprise and the results permit her to embark on a fourth term in the top job. […]

Draghi’s 2018 compromise: enough money printing to revive inflation and check euro ascent

Last Thursday Mario Draghi, the President of the European Central Bank, reassured the Eurozone banking conglomerates they will continue being blessed with zero cost money, well into the foreseeable future. He stated, “one thing is clear; the bottom line is that interest rates will stay, as it’s written here, at the present levels (zero for […]

Germany caught with selfish double standards in euro area policy

Over the past three years the European Central Bank, guided by its President Mario Draghi, has been folowing a super relaxed monetary policy. It has been aiming at reviving uncertain economic growth and dying inflation, by handing out to banks, and through them to the economy, hundreds of billions of euro and at the same […]

Trump to subject the Fed, challenge the ECB and make Wall St. bankers even richer

It’s obvious by now that the European Central Bank and its President Mario Draghi are following a diametrically opposite monetary policy than the American central bank, the famous FeD. Both Draghi and ECB Vice President Vítor Constâncio have loudly reassured everybody that the Eurozone’s central bank will continue injecting €60 to €80 billion a month […]

The four top Americans who flew to Europe perplexed things about Trump’s intentions

Four top ranking Washington bigwigs – who flew to Munich, Brussels and Bonn to mend fences with Europe, after Donald Trump termed NATO ‘obsolete’ and rejoiced the unraveling of the EU, left the Europeans bewildered with the dangerously diverging stories they had to narrate. Only the extreme right wing, Polish Defense Minister Anton Macierewicz seemed […]

Europe led by Germany seems vulnerable to Trump’s threats

Trump’s America and Europe are obviously at odds. The question is how far this division will go? Unquestionably, it’s the new tenant of the White House who fuels this unseen before confrontation between the Atlantic allies, attached by a time cherished bonding that has politically and economically shaped the world as we know it so […]

Draghi repels Trump’s threats, rejects Schauble’s dictums

Mario Draghi, the President of the European Central Bank, is under mounting pressures both at home and abroad. From the other side of the Atlantic US President Donald Trump is overtly targeting a much cheaper dollar compared to euro, while at his inaugural speech he clearly praised trade protectionism by saying, “Protection will lead to […]

Germany and Europe prepare for Trump’s America

Germany, and more generally the EU, is now preparing in earnest to confront the groundbreaking changes in their relations with Trump’s America. Last week, both the German Chancellor Angela Merkel and her Federal minister for Finance Wolfgang Schauble, made direct and indirect statements about the policies now needed for Germany and the European Union. On […]

Trump’s blasting win causes uncertainty and turbulence to the global financial markets

So Donald Trump against all odds won the US elections and will become the 45th President of the United States of America. The latter had as a result to cause severe and immediate turbulences to the world’s financial markets which experienced serious losses in the first few hours of the elections. However, Trump’s victory speech that came right after […]

Will the outcome of the UK referendum “calm” the financial markets?

Just one day left for both the Remain and Leave campaigners to persuade the undecided Britons to vote in their favor promoting what is best for their country. The world is about to finally find out what will be the outcome of the UK referendum with the reports and polls already showing reverse results compared to last […]

Who is to pay the dearest price in a global slowdown?

What happens in China is more important for the European economy than a meagre fall of unemployment in the Eurozone. Last Tuesday, China said its February exports dived by a record 25.4%, fuelling new fears for a bigger slowdown in the world economy. At the same time, a Press release by Eurostat, the EU statistical […]

Draghi tells the Parliament the ECB to use all its weaponry; euro slides to parity with the dollar

Undoubtedly, Mario Draghi’s speeches and comments are being carefully monitored, analyzed and discounted by government decision makers, capital market experts and of course the Press. Invariably, this was the case last week, when the President of the European Central Bank appeared before the European Parliament’s Economic and Monetary Affairs Committee. ECB’s accountability to the European […]

Why the ECB prepares to flood the markets with more and free of charge euro; everybody needs that now

Mario Draghi’s statement of last Thursday from Malta that the European Central Bank’s “monetary policy accommodation will need to be re-examined at our December monetary policy meeting”, offered a strong support to all major capital markets, with stocks gaining a lot of ground and the euro receding slightly. Understandably, a generous increase of ECB’s monthly […]

Germany loves a strong euro; the new Fiscal Councils can deliver despite the Greek chaos and a wider questioning of austerity

Last Saturday, 12 September, Commission Vice President Valdis Dombrovskis made some remarks after the informal meeting of ECOFIN (the EU ministers of Finance Council) in Luxembourg. The main item on the agenda was about completing the European Monetary Union. EMU is the most important EU project after the introduction of the single euro currency. He […]

A new global financial crisis develops fast; who denies it?

During the last two weeks the world’s largest stock markets had a wild time not seen since Lehman Brothers went bust on 15 September 2008. The New York stock exchange in Wall Street lost more than 8% of its capitalization in a few days and then recovered some of the losses to close last Friday […]

Why France, Italy and the US press Germany to accept a cheaper euro and pay for Greece

Since last March the European Central Bank has being pumping at least €60 billion a month into Eurozone’s financial system, under its ‘expanded asset purchase program’, aimed at reviving the stagnating price level and energizing the sleepy real economy. The objective is to bring inflation close to 2%; the target rate set by ECB’s monetary […]

What the world will look like after the Iran and 5+1 deal; the US emerges as major power broker in Middle East

The first to travel to Tehran after the nuclear agreement was struck last week between Iran and the 5+1 (France, Russia, China, the United Kingdom, and the United States plus Germany) are the German Vice Chancellor Zigmar Gabriel and Laurent Fabius the French minister for Foreign Affairs. Understandably, French and German dignitaries are more welcomed […]

Big world banks to pay $ 4.95bn for cheating customers; Is it a punishment or a gentle caress?

Last week five of the world largest banks, JPMorgan, Barclays, Citigroup, Royal Bank of Scotland and Union de Banques Suisses were fined by the American magistrates a total of $ 4.7 billion for rigging interest rate benchmarks. The banks had been setting those standards by themselves for five years after 2007. In another case the […]

ECB’s €1.14 trillion again unifies Eurozone; Germany approves sovereign debt risks to be pooled

The long-awaited move of the European Central Bank finally came yesterday afternoon. Mario Draghi announced from ECB’s Press room in the Frankfurt tower that the Eurosystem, the central banking system of the euro area, will purchase bonds issued by governments and other European institutions at a rate of around €60 billion a month. Obviously the […]

Why Eurozone urgently needs the ECB to print and distribute at least €500 billion

Next Thursday 22 January the European Central Bank is expected to announce its new extraordinary monetary program (quantitative easing), under which the central bank or the 19 member state national central banks will buy up to 20%-25% of Eurozone’s government debt. According to Eurostat, the government consolidated gross debt is around €9 trillion. Theoretically then […]

Negative inflation hits Eurozone, ECB to print and distribute one trillion euro earlier than expected

This week more indications emerged pointing to the possibility that the European Central Bank is to announce a government bond purchases programme sooner than expected. Negative inflation of -0.2% (deflation) in Eurozone during December (announced yesterday by Eurostat), brings this prospect much nearer. The latest information related to the government bond purchases by the ECB […]

The banks first to benefit from the new euro trillion ECB plans to print

Last week, all the major media reported a deep division in the Governing Council of the European Central Bank, over a Mario Draghi policy proposal to pump more freshly printed money into the struggling Eurozone economy. Nevertheless, the European Sting very early in the morning of Thursday 6 November, before the meeting of the Council, […]

The EU Commission implicates major banks in cartel cases, threatens with devastating fines

Three major international banking firms Crédit Agricole, HSBC and JPMorgan Chase came yesterday again under the watchful eye of the European Commission, for their role in financial sector cartels (interest rates and derivatives denominated in euro). It’s about financial products based on the Euribor (euro interbank offered rate), an interest rate benchmark. This interest rate […]

The US banks drive the developing world to a catastrophe

How is it possible that the good news of the growth of the American economy which has raised its gear, also brings forth crisis and possibly destruction in developing countries? Yet this is exactly what is already happening in our brave new world. The good news is that the US economy now grows at a […]

ECB’s Draghi favours a cheaper euro to serve all Eurozone countries

György Matolcsy, the controversial Hungarian politician and economist, currently serving as governor of his country’s central bank, handpicked for the job by the equally controversial Prime Minister Viktor Orban, reported that the President of the European Central Bank, Mario Draghi has set the ceiling for the euro/dollar parity at 1/1.30. This is something Draghi has […]

ECB guarantees the liquidity of the Atlantic financial volume

There is no doubt that the European Central Bank is determined not only to continue supporting Eurozone’s real economy with liquidity at almost zero interest rate cost for as long as it needs to achieve tangible growth, but by the same token it appears ready to succeed the American Fed in keeping the western financial […]

Appreciation of euro to continue

This January’s upwards trend of the euro parity with the other major currencies, the dollar and the yen, led today at a quote very close to the upper benchmark of 1.35, triggering worries about Eurozone’s exports. During this first month of the year the single European currency has appreciated at least 15% with the dollar […]