by Nomi Prins
103. Ibid.
104. Duncan Mavin, “Italy’s Banking Fiasco,” Bloomberg Gadfly, January 20, 2016, www.bloomberg.com/gadfly/articles/2016-01-20/italy-banking-crisis-could-be-helped-by-paschi-intesa-deal.
105. Mario Draghi and Vítor Constâncio, “Declaração introdutória à conferência de imprensa,” European Central Bank, January 21, 2016, www.ecb.europa.eu/press/pressconf/2016/html/is160121.pt.html.
106. Mario Draghi and Vítor Constâncio, “Introductory Statement to the Press Conference (with Q&A),” European Central Bank, January 21, 2016, www.ecb.europa.eu/press/pressconf/2016/html/is160121.en.html.
107. “Federal Reserve Issues FOMC Statement” (press release), Board of Governors of the Federal Reserve System, January 27, 2016, www.federalreserve.gov/newsevents/press/monetary/20160127a.htm.
108. Ann Saphir and Jonathan Spicer, “Fed Again Poised to Cut Longer-Run Interest Rate Forecast,” Reuters, September 20, 2016, www.reuters.com/article/us-usa-fed-forecasts-analysis-idUSKCN11Q0EL.
109. Natasha Doff and Rachel Butt, “Emerging-Markets Rise on Fed as Ruble, Ringgit Gains with Oil,” Bloomberg, January 27, 2016, updated on January 27, 2016, www.bloomberg.com/news/articles/2016-01-28/emerging-stocks-rise-on-fed-as-ringgit-leads-gains-in-currencies.
110. Communiqué, G20 Finance Ministers and Central Bank Governors Meeting, Shanghai, February 27, 2016, www.g20.utoronto.ca/2016/160227-finance-en.html.
111. Morten Linnemann Bech and Aytek Malkhozov, “How Have Central Banks Implemented Negative Policy Rates?” Bank for International Settlements, March 6, 2016, www.bis.org/publ/qtrpdf/r_qt1603e.htm.
112. “Monetary Policy Decisions” (press release), European Central Bank, March 10, 2016, www.ecb.europa.eu/press/pr/date/2016/html/pr160310.en.html.
113. Mario Draghi and Vítor Constâncio, “Introductory Statement to the Press Conference (with Q&A),” European Central Bank, March 10, 2016, www.ecb.europa.eu/press/pressconf/2016/html/is160310.en.html.
114. Ibid.
115. Ibid.
116. www.chinapost.com.tw/business/europe/2016/03/21/461284/bundesbank-boss.htm.
117. Rebecca Christie and Karl Stagno Navarra, “Draghi Said to Tell EU Leaders ‘No Alternative’ to ECB Rate Cuts,” Bloomberg, March 17, 2016, www.bloomberg.com/news/articles/2016-03-17/draghi-said-to-tell-eu-leaders-no-alternative-to-ecb-rate-cuts-ilwq89vk.
118. Steve Liesman, “Fed Chair Yellen Has a Mini Revolt on Her Hands,” CNBC, March 23, 2016, www.cnbc.com/2016/03/23/fed-chair-yellen-has-a-mini-revolt-on-her-hands-as-dissenters-emerge.html.
119. Andrew Mayeda and Mark Deen, “Zhou, Finance Chiefs to Discuss Crisis Planning in Paris Forum,” Bloomberg, March 29, 2016, www.bloomberg.com/news/articles/2016-03-29/zhou-finance-chiefs-to-discuss-crisis-planning-in-paris-forum.
120. “Germany Takes Aim at the European Central Bank,” Spiegel Online, April 8, 2016, www.spiegel.de/international/europe/conflict-grows-between-germany-and-the-ecb-a-1086245.html.
121. “Germany Blames Mario Draghi for Rise of Rightwing AfD Party,” Financial Times, April 10, 2016, https://next.ft.com/content/bc0175c4-ff2b-11e5-9cc4-27926f 2b110c.
122. “Germany’s Gabriel Says ECB Policy Expropriates ‘Little People,’” Reuters, April 8, 2016, www.reuters.com/article/ecb-policy-germany-idUSB4N12S022.
123. “Communiqué, G20 Finance Ministers and Central Bank Governors Meeting,” International Monetary Fund, Washington, DC, April 15, 2016, www.imf.org/external/np/cm/2016/041616.htm.
124. Mario Draghi and Vítor Constâncio, “Introductory Statement to the Press Conference (with Q&A),” European Central Bank, April 21, 2016, www.ecb.europa.eu/press/pressconf/2016/html/is160421.en.html.
125. Mario Draghi, “Interview with Bild,” by Kai Diekmann, Nikolaus Blome, and Daniel Biskup, European Central Bank, April 25, 2016, published April 28, 2016, www.ecb.europa.eu/press/inter/date/2016/html/sp160428.en.html.
126. Ibid.
127. Ibid.
128. Mario Draghi, “Addressing the Causes of Low Interest Rates” (introductory speech, “The Future of Financial Markets: A Changing View of Asia” panel, Annual Meeting of the Asian Development Bank, Frankfurt am Main, May 2, 2016), www.ecb.europa.eu/press/key/date/2016/html/sp160502.en.html.
129. “German Current Account Surplus to Hit Record, World’s Largest in 2016: Ifo,” Reuters, January 30, 2017, www.reuters.com/article/us-germany-economy-trade-idUSKBN15E0W4.
130. “ECB’s Villeroy Says Draghi Criticism ‘Excessive and Dangerous’: Report,” Reuters, May 25, 2016, www.reuters.com/article/us-ecb-policy-villeroy-draghi-idUSKCN0YG0KL.
131. Ibid.
132. “Brexit ‘Serious Risk to Growth’ Says G7,” BBC News, May 27, 2016, www.bbc.com/news/business-36394905.
133. Karishma Vaswani, “Brexit Poses ‘Major Risk’ to Global Growth, Warns Bank of Japan Chief,” BBC News, May 22, 2016, www.bbc.com/news/business-36354947.
134. “Germany: Draghi v the Banks,” Financial Times, May 31, 2016, https://next.ft.com/content/59461c9a-2420-11e6-aa98-db1e01fabc0c.
135. Katie Linsell, Alastair Marsh, and Sally Bakewell, “Draghi Buying Junk Bonds Shows ECB Will Do Whatever It Takes,” Bloomberg, June 8, 2016, www.bloomberg.com/news/articles/2016-06-08/draghi-seen-buying-junk-debt-shows-ecb-will-do-whatever-it-takes.
136. “Euro Zone at Risk of Suffering Lasting Economic Damage: Draghi,” Reuters, June 9, 2016, www.reuters.com/article/us-ecb-policy-draghi-idUSKCN0YV0M2.
137. Leika Kihara, “BOJ Makes Contingency Plans for Brexit, Sees Dollar Squeeze, Yen Spike as Risks,” Reuters, June 15, 2016, www.reuters.com/article/us-britain-eu-boj-idUSKCN0Z11BB.
138. “Federal Reserve Issues FOMC Statement” (press release), Board of Governors of the Federal Reserve System, June 15, 2016, www.federalreserve.gov/newsevents/press/monetary/20160615a.htm.
139. “Fed Chief Yellen’s News Conference After FOMC Meeting,” Reuters, June 15, 2016, www.reuters.com/article/us-usa-fed-yellen-idUSKCN0Z12BX.
140. Sam Forgione, “Sterling Pares Losses After Hitting 31-Year Low on Brexit,” Reuters, June 23, 2016, www.reuters.com/article/us-global-forex-idUSKCN0Z92O8.
141. “Daily Mail Comment: Take a Bow, Britain! The Quiet People of Our Country Rise Up against an Arrogant, Out-of-Touch Political Class and a Contemptuous Brussels Elite,” Daily Mail (London), June 24, 2016, www.dailymail.co.uk/debate/article-3659143/DAILY-MAIL-COMMENT-bow-Britain-quiet-people-country-rise-against-arrogant-touch-political-class-contemptuous-Brussels-elite.html.
142. “Federal Reserve Is Carefully Monitoring Developments in Global Financial Markets” (press release), Board of Governors of the Federal Reserve System, June 24, 2016, www.federalreserve.gov/newsevents/press/monetary/20160624a.htm.
143. “Statement by Secretary Lew on UK Referendum” (press release), US Department of the Treasury, June 24, 2016, www.treasury.gov/press-center/press-releases/Pages/jl0499.aspx.
144. “Statement of G-7 Finance Ministers and Central Bank Governors” (press release), US Department of the Treasury, June 24, 2016, www.treasury.gov/press-center/press-releases/Pages/jl0498.aspx.
145. Noah Barkin and Francesco Guarascio, “Draghi Sees Brexit Vote Hitting Euro Zone Growth by Up to 0.5 Percent over Three Years: Official,” Reuters, June 28, 2016, http://uk.reuters.com/article/us-britain-eu-draghi-idUKKCN0ZE2G5.
146. “Restore EU Trust with Pragmatism, Urges Germany’s Schäuble,” Deutsche Welle, March 7, 2016, www.dw.com/en/restore-eu-trust-with-pragmatism-urges-germanys-sch%C3%A4uble/a-19374908.
147. Shawn Donnan, Gillian Tett, and Sam Fleming, “Lagarde Warns Trump-Style Protectionism Would Hit World Economy,” Financial Times, July 7, 2016, www.ft.com/content/134aac12-4403-11e6-9b66-0712b3873ae1.
148. “Monetary Policy Decisions” (press release), European Central Bank, July 21, 2016, www.ecb.europa.eu/press/pr/date/2016/html/pr160721.en.html.
149. Shinji Takagi, Donal Donovan, George Kopits, Ling Hui Tan, Nicolas Veron, Sanjay Dhar, Silvia Sgherri, et al., The IMF and the Crises
in Greece, Ireland, and Portugal: An Evaluation by the Independent Evaluation Office (Washington, DC: International Monetary Fund, Independent Evaluation Office, July 8, 2016), www.ieo-imf.org/ieo/files/completedevaluations/EAC__REPORT%20v5.PDF.
150. Graeme Wearden, “Bank of England Cuts Interest Rates to Ward Off Brexit Recession—As It Happened,” Guardian (Manchester), August 4, 2016, www.theguardian.com/business/live/2016/aug/04/bank-of-england-interest-rates-stimulus-inflation-report-business-live.
151. Mark Carney, opening remarks at Inflation Report Press Conference, Bank of England, August 4, 2016, www.bankofengland.co.uk/publications/Documents/inflationreport/2016/irspnote040816.pdf.
152. Angela Monaghan and Katie Allen, “Jackson Hole: Yellen Leaves Door Open to Rate Rise Before Year-End—As It Happened,” Guardian (Manchester), August 26, 2016, www.theguardian.com/business/live/2016/aug/26/all-eyes-on-yellen-as-jackson-hole-kicks-off-business-live.
153. Christopher Condon, “Fed’s Regional Bank Boards Increase Pressure for Rate Hike,” Bloomberg, August 23, 2016, www.bloomberg.com/news/articles/2016-08-23/eight-fed-district-bank-boards-backed-discount-rate-hike-in-july.
154. Jana Kasperkevic, “Janet Yellen: The Case for an Interest Rate Hike in 2016 Has ‘Strengthened,’” Guardian (Manchester), August 26, 2016, www.theguardian.com/business/2016/aug/26/janet-yellen-speech-jackson-hole-federal-reserve-interest-rate.
155. Peter Spence, “Currency Wars Pose ‘Lose-Lose’ Threat After Brexit Vote, Warns ECB’s Mario Draghi,” Telegraph (London), June 28, 2016, www.telegraph.co.uk/business/2016/06/28/currency-wars-pose-lose-lose-threat-after-brexit-vote-warns-ecbs/.
156. Balazs Koranyi and Francesco Canepa, “ECB Hints at Stimulus but Keeps Markets Guessing,” Reuters, September 7, 2016, www.reuters.com/article/us-ecb-policy-idUSKCN11D2RN.
157. Mario Draghi and Vítor Constâncio, “Introductory Statement to the Press Conference (with Q&A),” European Central Bank, September 8, 2016, www.ecb.europa.eu/press/pressconf/2016/html/is160908.en.html.
158. Anushka Asthana and Rowena Mason, “David Cameron Quits as MP to ‘Avoid Being a Distraction’ to May,” Guardian (Manchester), September 12, 2016, www.theguardian.com/politics/2016/sep/12/david-cameron-to-stand-down-as-mp-for-witney.
159. “Statement from the Governor of the Bank of England following the EU referendum result” (press release), Bank of England, June 24, 2016, www.bankofengland.co.uk/publications/Pages/news/2016/056.aspx.
160. “Markets Too Dependent on Central Banks,” Financial Times, September 8, 2016, www.ft.com/content/1457ca48-7dbc-11e6-8e50-8ec15fb462f4.
161. Claudio Borio, remarks at media briefing, BIS Quarterly Review, September 2016, www.bis.org/publ/qtrpdf/r_qt1609_ontherecord.htm#cb.
162. “Economic Imbalances Risk ‘Destabilising’ Euro Zone: ECB’s Draghi,” Reuters, September 26, 2016, www.reuters.com/article/us-eurozone-economy-ecb-idUSKCN11W1MX.
163. Birgit Jennen, “Draghi Goes Head-to-Head with German Critics of ECB Policy,” Bloomberg, September 28, 2016, www.bloomberg.com/news/articles/2016-09-27/draghi-goes-head-to-head-with-german-critics-of-ecb-s-low-rates.
164. Ibid.
165. Therese Raphael, “Deutsche Bank’s Troubles Touch a Nationalist Nerve,” Bloomberg Opinion, October 4, 2016, www.bloomberg.com/view/articles/2016-10-04/deutsche-s-troubles-touch-a-nationalist-nerve.
166. Philip Blenkinsop and Francesco Canepa, “Some Relief for Big-Spending ECB as Euro Zone Inflation Ticks Up,” Reuters, September 30, 2016, http://in.reuters.com/article/eurozone-economy-inflation-idINKCN1201I0.
167. Jan Strupczewski and David Lawder, “Finance Leaders Issue Fresh Warnings Amid Deutsche Worries, Pound Rout,” Reuters, October 7, 2016, http://uk.reuters.com/article/uk-imf-g-idUKKCN12723Z.
168. Ibid.
169. “ECB Could Hit Inflation Target by Late 2018, Early 2019—Draghi,” Reuters, October 8, 2016, www.reuters.com/article/us-ecb-policy-draghi-idUSKCN1280SX.
170. Mario Draghi and Vítor Constâncio, “Introductory Statement to the Press Conference (with Q&A),” European Central Bank, March 10, 2016, www.ecb.europa.eu/press/pressconf/2016/html/is160310.en.html.
171. “Mark Carney: The ‘Film Star’ Bank of England Governor,” BBC News, October 31, 2016, www.bbc.com/news/business-23050597.
172. May Bulman, “Mark Carney to Stay as Governor of Bank of England to Help ‘Secure an Orderly Transition’ into Brexit,” Independent (London), October 31, 2016, www.independent.co.uk/news/business/news/mark-carney-governor-bank-of-england-june-2019-theresa-may-philip-hammond-a7389771.html.
173. Zlata Rodionova, “Pound Sterling Falls to Six-Year Low against the Euro,” Independent (London), October 17, 2016, www.independent.co.uk/news/business/news/pound-value-sterling-drops-euro-dollar-currency-exchange-rate-latest-low-a7366001.html.
174. Hans Bentzien, “Deutsche Bank Poses Greatest Risk to Global Financial System, IMF Says,” Wall Street Journal, June 30, 2016, www.wsj.com/articles/deutsche-bank-poses-greatest-risk-to-global-financial-system-imf-says-1467239405.
175. Mike Bird, “Understanding Deutsche Bank’s $47 Trillion Derivatives Book,” Wall Street Journal, October 5, 2016, www.wsj.com/articles/does-deutsche-bank-have-a-47-trillion-derivatives-problem-1475689629.
176. Mario Draghi and Vítor Constâncio, “Introductory Statement to the Press Conference (with Q&A),” European Central Bank, January 19, 2017, www.ecb.europa.eu/press/pressconf/2017/html/is170119.en.html.
177. Piotr Skolimowski, “Draghi Urges German Patience on Inflation as Euro Area Heals,” Bloomberg, January 19, 2017, www.bloomberg.com/news/articles/2017-01-19/draghi-says-ecb-unconvinced-on-inflation-driven-mainly-by-oil.
178. Mark Carney, remarks, in Inflation Report (London: Bank of England, February 2017), www.bankofengland.co.uk/publications/Pages/inflationreport/2017/feb.aspx.
179. German parliament.
180. Sahra Wagenknecht (head of Die Linke [Left] Party), email conversation with author, Bundestag, October 8, 2015.
181. Ibid.
182. Mario Draghi and Vítor Constâncio, “Introductory Statement to the Press Conference,” European Central Bank, June 8, 2017, www.ecb.europa.eu/press/pressconf/2017/html/ecb.is170608.en.html.
183. Steven Erlanger and Melissa Eddy, “Angela Merkel Makes History in German Vote, but So Does Far Right,” New York Times, September 24, 2017, www.nytimes.com/2017/09/24/world/europe/germany-election-merkel.html
184. Jack Ewing, “Wolfgang Schäuble, Architect of Austerity, Is Out as Germany’s Finance Minister,” September 27, 2017, www.nytimes.com/2017/09/27/business/schauble-germany-parliament.html.
CONCLUSION: THE END IS JUST THE BEGINNING
1 Stanley Fischer, “The Low Level of Global Real Interest Rates” (speech at the Conference to Celebrate Arminio Fraga’s 60 Years, Casa das Garcas, Rio de Janeiro, Brazil, July 31, 2017), www.federalreserve.gov/newsevents/speech/fischer20170731a.htm.
2. Ibid.
3. Adam Taggart, “It’s Time to Get Painfully Honest: Banks Are Evil,” Peak Prosperity, on ZeroHedge, March 18, 2017, www.zerohedge.com/news/2017-03-18/its-time-get-painfully-honest-banks-are-evil.
4. Bitcoin, https://bitcoin.org/en/.
5. Rishi Iyengar, “China’s Bitcoin Crackdown Forces Exchanges to Close. The Price Is Crashing,” CNN, September 15, 2017, http://money.cnn.com/2017/09/15/technology/china-bitcoin-exchanges-prices-crash/index.html.
6. Jeffrey A. Tucker, “IMF Head Foresees the End of Banking and the Triumph of Cryptocurrency,” FEE, September 30, 2017, https://fee.org/articles/imf-head-predicts-the-end-of-banking-and-the-triumph-of-cryptocurrency/.
7. Ibid.
8. Joseph Stiglitz, “Joseph Stiglitz Explains Why the Fed Shouldn’t Raise Interest Rates” (op-ed), Los Angeles Times, August 27, 2015, www.latimes.com/opinion/op-ed/la-oe-0827-stiglitz-interest-rates-20150827-story.html.
9. Liz Moyer, “Alan Greenspan: The Bubble Is in Bonds, Not Stocks,” CNBC, August 1, 2017, www.cnbc.com/2017/08/01/alan-greenspan-the-bubble-is-in-bond
s-not-stocks.html.
10. Evelyn Cheng, “JPMorgan Unleashed: Bank Commits to Largest Buyback Since Crisis,” CNBC, June 28, 2017, www.cnbc.com/2017/06/28/jpmorgan-commits-to-largest-buyback-since-crisis.html.
11. Chris Dieterich, “Banks Unleash Record Stock Buyback Plans,” Moneybeat (blog), Wall Street Journal, June 30, 2017, https://blogs.wsj.com/moneybeat/2017/06/30/banks-unleash-record-stock-buyback-plans/.
12. Thomas M. Hoenig, letter to Michael Crapo and Sherrod Brown, July 31, 2017, http://wallstreetonparade.com/wp-content/uploads/2017/08/earningsandloangrowth_LettertoBankingCommittee_7-31-2017.pdf.
INDEX
Abenomics, 149–150, 155, 158–162, 165, 172–173
Ackerman, Josef, 207
ADB. See Asian Development Bank
AIIB. See Asian Infrastructure Investment Bank
Aldrich, Nelson, 4
Alves, Henrique, 83
Amaral, Delcídio do, 76
And the Weak Suffer What They Must (Varoufakis), 227
APP. See asset purchase program
artificial money, 7, 51, 247, 249
Asian Development Bank (ADB), 178
Asian Infrastructure Investment Bank (AIIB), 164, 178, 250
Asia-Pacific Economic Cooperation (APEC), 50
asset bubbles, 1, 14, 87, 106, 135, 178
curbing, 129
Draghi on, 225
fueling of, 241, 246, 254
growth of, 63
Ryan on, 207
asset purchase program (APP), 222, 239, 244
Axelrod, David, 135
Baer, Werner, 68
bailouts, 2, 18
cheap money and, 93
ESM as, 198
Eurozone, 229
in Greece, 195, 200–201, 203, 216–217
IMF fund, 202
in Mexico, 20–22, 28
by troika, 225
Wall Street, 30
Balduino, Luis, 81
Ban Ki-moon, 27
Banca Monte dei Paschi di Siena, 232
Banco de México, 11, 26–27, 42
