Central Bank Archive

President Obama entering the fray

More of the blind leading the blind. The one thing they all agree on, at great expense to global well being, is the budget deficits are all too large and the need for shared sacrifice and all that. No chance for anything constructive to come out of any of this. And these ...Read More

The Independent: UK Bank deputy chief warning

Bank deputy chief warns of market trouble to come by Ben Russell, Political Correspondent and Sean O’Grady Britain is facing the risk of renewed turmoil in the financial markets, the new deputy governor of the Bank of England warned yesterday. Professor Charlie Bean, the deputy governor for monetary policy and a former ...Read More

2008-01-21 Update

Major themes intact: weak economy higher prices Weakness: US demand soft but supported by exports. US export strength resulting from non resident ‘desires’ to reduce the rate of accumulation of $US net financial assets. This driving force is ideologically entrenched and not likely to reverse in the next several months. In previous ...Read More

Why I expect US exports to continue to be very strong..

The desire to accumulate $US financial assets has been diminished for at least the following reasons: Treasury policy – Paulson is actively pushing both a strong yuan and threatening any other CB that buys $US with the label of ‘currency manipulator.’ CB’s had been perhaps the largest source of $US financial assets ...Read More

Crisis may make 1929 look a ‘walk in the park’

Crisis may make 1929 look a ‘walk in the park’ Telegraph by Ambrose Evans-Pritchard As central banks continue to splash their cash over the system, so far to little effect, Ambrose Evans-Pritchard argues that things risk spiralling out of their control Twenty billion dollars here, $20bn there, and a lush half-trillion from ...Read More

it’s about price, not quantity

It’s about price, not quantity. CB’s don’t alter net reserve positions – they ‘offset operating factors’ and set interest rates. Fed to redeem $14.02 bln of bill holdings Dec. 27 Thu Dec 20, 2007 11:20am EST NEW YORK, Dec 20 (Reuters) – The U.S. Federal Reserve said on Thursday it will redeem ...Read More