Tag Archives: ECB

Currency composition of FX reserves of world’s central banks.


Here you can find a useful graph of the currency composition of FX reserves for the 114 reporting countries’ central banks.

Empty nonsense talk from European policy makers.


It is time to end globalism, time to end European Union, time to abandon Euro currency and shut down the Brussels parasitic state once and for all. European people don’t need their stinking opinions on how to run their lives. The sooner this modern economic and political systems come down, the sooner we’ll all breathe easily. It applies to all countries around the world.

Deflation is here and now and everywhere.


If one were to listen to the policy makers and news media, one might think that deflation may still be averted and has not yet arrived. But if one reads the official economic statistics from around the world one will see that deflationary spiral has already arrived and is beginning its whirlwind motions in earnest.

Bank of Japan Said to See Deflation Stretching Through 2011.


Japan is decades ahead of US and the rest of the world in fighting deflation by all means necessary. US is now following the same exact failed policies of reflation and Quantitavie Easing as has the Bank of Japan for the last 15 years.

In a snub to ECB’s denial of deflation European Prices Fall 0.6%.


The question is now when will the European Central Bank finally admit that there is deflation in Eurozone?

EU Finances Are Looking Grim. Deflation will not be denied.


As the clowns in European fiancial elite circles are still trying to figure out whether or not they are in deflation, the big D is now solidly in charge of the region. As private credit is collapsing the Euro-zone governments and Central Banks are desperately trying to reinflate by pumping up the public debt and using the proceeds for spending. Yet the reflation is finding itself oddly overpowered by the deflationary wind blowing against it. Sooner or later this public debt bubble, and a huge one, will reach its maximum size and start letting the hot air out. When that happens, there will be nobody to guarantee the sovereign debts. The longer the deflation is delayed, the stronger it will be.

European Central Bank Chief Trichet downplays deflation risk.


The ECB officials continue the nonsense talk about recovery, “negative inflation” and no deflation, while their own actions prove that they are working frantically to reflate the collapsing credit. That is deflation by definition. Also, note that the Sweden’s Central Bank cut its intereste rate in a “surprise” step. The deflation panick is spreading. The […]

Euro-Zone slips into deflation.


Consumer-price inflation in the 16 countries that share the euro currency fell 0.1% this month, down from May’s flat reading, according to a Tuesday estimate from European statistics agency Eurostat. June’s rate is the lowest since comparable records began in 1997. Economists at the Royal Bank of Scotland estimate inflation in Europe’s economic heartland hasn’t been as low since 1953.

ECB’s 442 Billion Euro injecton from June 24 is not working. Banks still refusing to lend funds, hoard cash.


Banks are not stupid, they know the economy is in decline, loan defaults are rising, assets that back them up are losing value, so the safest thing is NOT to lend and to keep the freshly printed Euros with the ECB. This is deflation and ECB cannot hide it anymore, despite what they are saying about it. Their actions tell us a story of panicky efforts in an attempt to prop up the imploding credit. 442 Billion Euros lent out in one single day is a staggering amount of money even in the context of what FED has done so far.

Deflation is hitting Europe hard. ECB in panick mode.


The ECB lent banks 442 billion euros for 12 months, the most it has ever allotted in an auction, as part of attempts to revive credit markets – the ECB is fighting deflation here, that is clear as a day.