Skip to comments.Recovery? The World Eases...
Posted on 02/25/2015 2:00:46 PM PST by alexmark1917
Despite endless proclamations that the world has 'escaped' the financial crisis, the data (and actions) simply do not back that up. The constant propagandizing of either a) US is economically strong and will drive the world's growth engine (factually incorrect), or b) the rest of the world is about to revert to higher growth seems entirely anathema to the fact that in 2015, we have seen a wave of monetary easing - most recently today by Israel. That makes it20 central banks that have cut rates (or eased policy) in the last few weeks - covering over 50% of the world's population.
The World Eases...
What does your central bank have planned for 2015?
"None of the world's major central banks that launched QE since 2009 have sold assets purchased during QE or increased interest rates so far
Rudolf E. Havenstein (@RudyHavenstein) February 23, 2015
Global recovery: when 20 central banks rush into currency war in 8 weeks
For those asking, here is the full, updated list of 20 central banks easing so far in 2015 courtesy of Reuters:
1. Jan. 1 UZBEKISTAN
Uzbekistan's central bank cuts its refinancing rate to 9 percent from 10 percent.
2. Jan. 7/Feb. 4 ROMANIA
Romania's central bank cuts its key interest rate by a total of 50 basis points, taking it to a new record low of 2.25 percent. Most analysts polled by Reuters had expected the latest cut.
3. Jan. 15 SWITZERLAND
The Swiss National Bank stuns markets by scrapping the franc's three-year-old exchange rate cap to the euro, leading to an unprecedented surge in the currency. This de facto tightening, however, is in part offset by a cut in the interest rate on certain sight deposit account balances by 0.5 percentage points to -0.75 percent.
4. Jan. 15 INDIA
The Reserve Bank of India surprises markets with a 25 basis point cut in rates to 7.75 percent and signals it could lower them further, amid signs of cooling inflation and growth struggling to recover from its weakest levels since the 1980s.
5. Jan. 15 EGYPT
Egypt's central bank makes a surprise 50 basis point cut in its main interest rates, reducing the overnight deposit and lending rates to 8.75 and 9.75 percent, respectively.
6. Jan. 16 PERU
Peru's central bank surprises the market with a cut in its benchmark interest rate to 3.25 percent from 3.5 percent after the country posts its worst monthly economic expansion since 2009.
7. Jan. 20 TURKEY
Turkey's central bank lowers its main interest rate, but draws heavy criticism from government ministers who say the 50 basis point cut, five months before a parliamentary election, is not enough to support growth.
8. Jan. 21 CANADA
The Bank of Canada shocks markets by cutting interest rates to 0.75 percent from 1 percent, where it had been since September 2010, ending the longest period of unchanged rates in Canada since 1950.
9. Jan. 22 EUROPEAN CENTRAL BANK
The ECB launches a government bond-buying programme which will pump over a trillion euros into a sagging economy starting in March and running through to September next year, and perhaps beyond.
10. Jan. 24 PAKISTAN
Pakistan's central bank cuts its key discount rate to 8.5 percent from 9.5 percent, citing lower inflationary pressure due to falling global oil prices. Central Bank Governor Ashraf Wathra says the new rate will be in place for two months, until the next central bank meeting to discuss further policy.
11. Jan. 28 SINGAPORE
The Monetary Authority of Singapore unexpectedly eases policy, saying in an unscheduled policy statement that it will reduce the slope of its policy band for the Singapore dollar because the inflation outlook has "shifted significantly" since its last review in October 2014.
12. Jan. 28 ALBANIA Albania's central bank cuts its benchmark interest rate to a record low 2 percent. This follows three rate cuts last year, the most recent in November.
13. Jan. 30 RUSSIA Russia's central bank unexpectedly cuts its one-week minimum auction repo rate by two percentage points to 15 percent, a little over a month after raising it by 6.5 points to 17 percent, as fears of recession mount following the fall in global oil prices and Western sanctions over the Ukraine crisis.
14. Feb. 3 AUSTRALIA The Reserve Bank of Australia cuts its cash rate to an all-time low of 2.25 percent, seeking to spur a sluggish economy while keeping downward pressure on the local dollar.
15. Feb. 4 CHINA China's central bank makes a system-wide cut to bank reserve requirements -- its first in more than two years -- to unleash a flood of liquidity to fight off economic slowdown and looming deflation.
16. Jan. 19/22/29/Feb. 5 DENMARK The Danish central bank cuts interest rates a remarkable four times in less than three weeks, and intervenes regularly in the currency market to keep the crown within the narrow range of its peg to the euro.
17. Feb. 13 SWEDEN Sweden's central bank cut its key repo rate to -0.1 percent from zero where it had been since October, and said it would buy 10 billion Swedish crowns worth of bonds
18. February 17, INDONESIA Indonesias central bank unexpectedly cut its main interest rate for the first time in three years
19. February 18, BOTSWANA The Bank of Botswana reduced its benchmark interest rate for the first time in more than a year to help support the economy as inflation pressures ease. The rate was cut by 1 percentage point to 6.5 percent, the first adjustment since Oct. 2013, the central bank said in an e-mailed statement on Wednesday.
20. February 23, ISRAEL
The Bank of Israel reduced its interest rate by 0.15 percentage points, to 0.10 percent in order to stimulate a return of the inflation rate to within the price stability target of 13 percent a year over the next twelve months, and to support growth while maintaining financial stability.
* * *
So why is the entire world rushing in a currency war to the bottom? Simple: because as we have been warning for months, and as Goldman finally admitted last week, the world can no longer avoid the fact that it is in a global recession.
BWAHAHA! Central banks can print all the money they want but they still can't print borrowers!
BobWallace (@BobWallace) February 24, 2015
1 in 3 Americans on verge of financial ruin Euro gives up Greece-fueled gain on concerns the drama isnt over Stock valuations climb as retailers wrap earnings season Pension liabilities grow as people live longer Greek bank deposit outflows rose to 3 billion euros last week: JP Morgan Why Greece will never repay its debt Ukraine bonds fall to 40 cents in dollar as sell-off grip Pension sytem and road fund could derail state budget (New Jersey) Atlantic City: Decline of the boardwalk empire Maryland sate retirement obligations pose major threat to Hogan's fiscal plans As roads age, cash for fixes dwindles Brazil Real Falls to 10-Year Low as Deeper Contraction Forecast Rig decline becoming widespread: Morgan Stanley
As the U.S. goes. so goes the world. Thanks Obama.
Each of the major “banks” in the U.S. are now calling to increase interest rates by June. Just why is that?
It is no coincidence that the ending of quantitative easing QEs in the U.S. AND now the call to increase interests rates, coincides with the commencement of, body mortgages, so called, “ACA”. They could no longer “get the take” from MBS, as the housing scam crashed.
Each U.S. person is now officially in the U.S. Body Mortgage Work Camp.
Escalating punishing fines, called “tax”, and moveable “out of thin air” deductibles. Body mortgages of each U.S. person, bought and sold. The Arbeitsziehungslager
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