by Nomi Prins
auction mechanism of, 20–21, 45, 48
cheap money and, 43
rate hikes of, 46–47, 49, 51–52
rate predictions of, 31–32
rates cut by, 41
United States and, 15
Bank for International Settlements (BIS), 8–10, 17, 212, 221
Carstens as head, 37, 50–51
developing nations and, 51
on inflation, 231
Ortiz as head, 32
Bank of America, 2, 21, 58, 200
Bank of Canada, 8, 56, 142, 150, 155, 186
currency swaps, 212, 218
Bank of England (BOE), 136, 155, 183, 201
currency swaps, 140, 150, 212, 218
rates cut by, 187, 240
Bank of Japan (BOJ), 2, 102, 134
asset purchase program, 145–147, 161, 165, 167
Brexit and, 166, 169, 238
cheap money of, 162
currency swaps, 140, 175, 218
on deflation, 141
Haruhiko Kuroda as head, 151–152
Masaaki Shirakawa as head, 135–136
money injection by, 160
money pumping by, 139
money-conjuring by, 133, 139, 143, 149, 159, 175
negative rates of, 164–175
NIPR in, 13
PBOC alliance, 175–176
QE by, 138, 159–160
QQE of, 12
rates cut by, 119, 137, 210
Shinzo Abe on, 149–150
Tripartite Bank Governor’s Meeting, 97, 140
yen and, 201
Bank of Korea (BOK), 97, 140, 176
bank spreads, 58–59, 64, 66
Barbosa, Nelson, 77
Barroso, Joao, 80–81
Bartiromo, Maria, 17
Batista, Joesley, 84
BCB. See Central Bank of Brazil
Bean, Charles, R., 154
Bear Stearns, 18–19, 21, 55, 89, 90, 134, 183
Berlusconi, Silvio, 185, 201, 202, 203
Bernal, Alberto, 31
Bernanke, Ben, 1, 7, 30, 32, 38, 55
on bank purchases, 21
on Carstens, 42
as collusion master, 142
criticism of, 146
departure of, 110
Draghi and, 219–220
as the Fed head, 31, 141–142, 154, 194
on FOMC, 134
on foreign exchange intervention, 148
global policy of, 195
on gold standard, 104–105
as Helicopter Ben, 37
as illusionist, 22, 25
monetary intervention of, 18
money-conjuring by, 193
Ortiz meeting, 23–25
on policy tools, 188–189, 217
on protecting financial system, 207
QE and, 110, 147
on systemic risk, 94
Trichet on, 193, 197–199
Big Six banks, 2, 56, 249, 253
BIS. See Bank for International Settlements
Bitcoin, 250–251
BOJ. See Bank of Japan
BOK. See Bank of Korea
Borio, Claudio, 231, 241–242
Bradesco Bank, 58, 64, 65, 71
Brazil, 8, 11–12
best of times in, 60–62
capital controls in, 62–66
central banks as battleships, 54
China agreements, 79, 86
China trade wars and, 73–77
credit squeezes in, 76
currency wars in, 59–60
the Fed and, 86
future of, 78–79
GDP, 60–61, 74–76, 78
IMF on, 74, 78
inflation in, 66–69, 76
Meirelles becomes dove, 85–86
Mexico competition, 45
money-conjuring in, 62–63
in new year of 2016, 77–78
Operation Car Wash, 79–80, 83
outside financial crisis of 2007–2008, 54–57
overview, 53–54
Petrobras and, 72–73
political discontent in, 71–72
promises and results in 2014, 69–70
real strength in, 58
return of Meirelles, 82–85
risk and, 57–59
Temer’s coup in, 82
United States speculators in, 79–82
See also Central Bank of Brazil
Bresser-Pereira, Luiz, 81–82
Bretton Woods, 5, 24, 81, 214
Brexit, 13, 249
BOJ and, 166, 169, 238
China and, 123, 125–127
G7 banks on, 237
Haruhiko Kuroda on, 168
Lagarde on, 239
Lew on, 239
Merkel on, 229
money-conjuring and, 238–242
peso and, 49
Yellen on, 238
BRICS, 54, 57, 75, 97
aid and benefits to, 12
China and, 109–110
developing nations and, 214
See also Brazil; China; New Development Bank; Russia
Brown, Sherrod, 108
Bullard, James, 172, 234
Bush, George W., 18, 19, 24, 220
Calderón, Felipe, 18–20, 27, 51
IMF and, 33
on international financial institutions, 29
spending plan announcement, 23–25
stimulus package of, 31
Cameron, David, 229, 241
Carney, Mark, 154, 229–230, 240, 241, 243–245
Carstens, Agustín, 11–12, 15, 31, 102, 154
allegiance from, 43–44
ascension of, 35–36
awards to, 38, 39
Bernanke on, 42
as BIS head, 37, 50–51
at Bloomberg Markets 50 Summit, 39
on currency wars, 36
the Fed and, 40, 42, 45, 47
IMF and, 16, 38, 44
Lagarde competition, 28–29, 38
on monetary policy, 48
money magic by, 46
on Trump, 50–51
Caruana, Jaime, 9
CDB. See China Development Bank
Cecchetti, Stephen, 212
Central Bank of Brazil (BCB), 65, 157
bank spreads in, 58–59
inflation target, 58
Meirelles and, 53
rates raised by, 69, 75–76
SELIC and, 59, 61, 85–86
Tombini as head, 61–63, 68, 78
central banks, 4, 6, 10, 14, 138
as battleships in Brazil, 54
cheap money of, 193
collusion of, 248
currency swaps, 154, 190
goals in flux, 247
holding power, 250
intervention by, 178
liquidity and, 146
low rates and, 252
money-conjuring by, 98, 212, 241
power game of, 7–8
price stability and, 147
beyond public scrutiny, 249
types of, 253
Wall Street and, 249
See also specific banks
cheap money, 21, 36, 249
bailouts and, 93
Banco de México and, 43
of BOJ, 162
of central banks, 193
collusion with, 118
of the Fed, 2–3, 7, 10, 20, 63
in Mexico, 28, 43
policies of, 219–224
Shinzo Abe and, 151
in United States, 93
Wall Street and, 3, 6
Chiang Mai Initiative, 97
China, 6, 8, 11
Brazil, trade wars, and, 73–77
Brazil agreements, 79, 86
Brexit and, 123, 125–127
BRICS and, 109–110
currency wars and, 90, 118–119
EU and, 110, 218
G20 meeting in, 126–127
GDP of, 129
IMF and, 93
inflation in, 89–90
Lagarde visit, 102
money technique
s in, 12
money-conjuring in, 111
NDB and, 120–126
Obama on, 93
overview, 87–88
Paulson on, 90–91
Russia and, 99, 103, 111–117, 174
Treasury Bonds and, 94–95
Trump and, 12
in Year of Ox (2009), 92–98
in Year of Tiger (2010), 98–100
in Year of Rabbit (2011), 100–103
in Year of Dragon (2012), 103–107
in Year of Snake (2013), 107–108
in Year of Horse (2014), 110–112
in Year of Sheep (2015), 115–117
in Year of Monkey (2016), 117–120
in Year of Rooster (2017), 127–131
Zhou Xiaochuan intuition and, 88–92
See also People’s Bank of China
China Development Bank (CDB), 73, 101
China-Latin America Industrial Fund (CLAI-Fund), 79, 120
Citi-Banamex, 26, 28, 35, 43
Citigroup, 2, 28, 99
CLAI-Fund. See China-Latin America Industrial Fund
Clinton, Bill, 27, 28
Clinton, Hillary, 94, 105, 126, 139
collusion
Bernanke as master of, 142
of central banks, 248
change on horizon, 250–252
with cheap money, 118
by ECB, 184
by the Fed, 138, 139, 147, 184
in Japan, 12–13
with money-conjuring, 87
start of, 18
what should be done, 252–254
See also specific topics
Conable, Barber, 88
conjured money. See money-conjuring
Constâncio, Vítor, 215, 232
Corbat, Michael, 43
The Courage to Act (Bernanke), 23
Credit, Exchange and Insurance Tax (IOF), 60, 67
credit squeezes, 20–22, 47, 76
crypto currencies, 250
Cunha, Eduardo, 77, 82, 84
currency swaps, 8–9
Bank of Canada, 212, 218
BOE, 140, 150, 212, 218
BOJ, 140, 175, 218
of central banks, 154, 190
Chiang Mai Initiative, 97
Dudley defending, 205
ECB, 140, 212, 218
the Fed, 140, 190, 212
with Mexico, 26, 42
PBOC, 110, 112, 154, 175–176, 218
SNB, 212, 218
currency wars, 75
in Brazil, 59–60
Carstens on, 36
China and, 90, 118–119
Lagarde on, 152
Mantega coining, 60
in Mexico, 36–37
Dai Bingguo, 105
DAX, 195, 230
De Gaulle, Charles, 214, 235
developing nations
BIS and, 51
BRICS and, 214
capital inflows in, 69, 157
financial crisis of 2007–2008 and, 4–7, 250
IMF and, 29, 47, 137
inflation in, 62
monetary need of, 34
NDB and, 115–116
RCEP and, 50, 128, 177, 250
shifts in policy, 214
US dogma and, 30, 81–82
wage growth in, 9
World Bank and, 101
Dickens, Charles, 127
Dimon, Jamie, 18
DJIA. See Dow Jones Industrial Average
Dobrindt, Alexander, 211
dollar, 12, 91
appreciation of, 204, 230
Dollar Index, 140, 145, 184
drop in, 172, 173, 193, 219
the Fed supplying, 8–11
gains in, 156
Geithner on, 140–141
liquidity swap, 150
Masaaki Shirakawa on, 137
in Mexico, 30–31
Ortiz announcement, 22–23
World Bank on, 200
Zhou Xiaochuan on, 234–235
Dow Jones Industrial Average (DJIA), 91–92, 136, 139, 186, 254
Draghi, Mario, 7, 13, 155, 160, 165
on asset bubbles, 225
on bankers, 207–208
Bernanke and, 219–220
as ECB head, 204–206, 209–211
the Fed and, 182
on Germany, 236–237, 242–244
Italian Central Bank and, 192
money-conjuring by, 245–246
QE and, 225–226, 245
Schäuble on, 235–236, 242
showing strength, 203
as Super Mario, 213
See also Europe, Draghi and
Dudley, William, 39, 172, 205, 240
Duke, Elizabeth A., 40
EAPP. See Expanded Asset Purchase Programme
easy-money, 66, 141, 208, 213, 231, 245
EC. See European Commission
ECB. See European Central Bank
EFSF. See European Financial Stability Facility
Einstein, Albert, 225
Emergency Economic Stabilization Act of 2008, 3
emerging markets (EMs), 30
EMs. See emerging markets
ESM. See European Stability Mechanism
ETFs. See exchange-traded funds
EU. See European Union
euro, 12, 91, 108–110, 155–156, 198
crisis with, 103
depreciation of, 142, 159, 166, 206
in EU, 214
Greece and, 225
manipulation of, 223
Merkel on, 145, 202–203
strengthening of, 219, 221, 230
as supercurrency, 181
Trichet as guardian, 201
Europe
economic and monetary policies in, 13–14
IMF and, 5
political and economic turmoil in, 11
See also specific countries
Europe, Draghi and
Brexit and money-conjuring, 238–242
cheap money policies and, 219–224
Germany and, 242–244
Greece problem in, 216–219
more QA in, 230–238
overview, 213–216
tensions in, 224–230
Trump election and, 244–246
Europe, Trichet and
changing of ECB guard, 198–206
the Fed and ECB warm-up, 183–188
financial crisis of 2007–2008 involvement, 182–183
no-limit QE and, 193–198
overview, 181–182
QE and ECB, 188–193
recovery and, 206–212
European Central Bank (ECB), 2, 102, 136, 141, 155, 156, 223
APP, 222, 239, 244
attack on Greece, 227–228
auctions and, 186
bond purchase program, 211, 224–225, 232, 238
Bundesbank battle, 13
changing of guard, 198–206
collusion by, 184
currency swaps, 140, 212, 218
destruction caused by, 245
Draghi as head, 204–206, 209–211
the Fed warm-up, 183–188
Germany on, 235
inflation and, 217
money pumping by, 155–156, 183, 241, 245
money-conjuring by, 98, 175, 196, 205
negative rates of, 169, 220–222
QE and, 188–193, 208, 221
rates cut by, 37, 187, 189, 210, 230, 233–234
rates raised by, 198–199, 201
Schäuble on, 237
Trichet as head, 181, 185
yuan and, 113–114
European Commission (EC), 13
European Financial Stability Facility (EFSF), 195, 202, 206
European Monetary Union, 190, 197, 211, 213
European Stability Mechanism (ESM), 198
European Union (EU), 13, 181, 203, 229
China and, 110, 218
euro in, 214
the Fed and, 169
GDP, 129
Greece and, 226
Japan and, 179
Schäuble on, 239
state of banks in, 254
unemployment in, 218
See also Brexit
Eurozone, 13, 102–103, 151, 239
bailouts, 229
debt crisis in, 200
EFSF of, 195, 202, 206
fiscal policy and, 209
hitting wall, 187
inflation in, 219, 243
low growth in, 236–237
reforms in, 214
saving of, 194–195
split economy of, 192
unemployment in, 191, 219
viability of, 189
Evans, Charles, 153, 234
exchange-traded funds (ETFs), 170
Expanded Asset Purchase Programme (EAPP), 226
Fang Xinghai, 119
Federal Deposit Insurance Corporation (FDIC), 254
Federal Open Market Committee (FOMC), 26, 46, 142, 158, 166, 223
Bernanke on, 134
on rates, 240
Federal Reserve (the Fed), 1, 6, 145
Bernanke as head, 31, 141–142, 154, 194
Brazil and, 86
Carstens and, 40, 42, 45, 47
cheap money of, 2–3, 7, 10, 20, 63
collusion by, 138, 139, 147, 184
concern over Mexico, 26–27
currency swaps, 140, 190, 212
dodging criticism, 254
Draghi and, 182
ECB warm-up, 183–188
EU and, 169
financial crisis of 2007–2008 and, 3–4
G7 banks and, 4
IMF and, 10–11
Japan and, 159–160
Merkel on, 191
money pumping by, 37, 47, 110
money-conjuring by, 15, 31, 54, 88–89, 98, 114, 117, 139, 175, 254
Operation Twist, 115
private sector intervention of, 21
QE by, 42, 46, 63, 67, 81, 95, 100, 106–107, 115, 143, 146, 159–160, 211–212, 224
rate cuts by, 22, 37, 137, 138
rates raised by, 46–48, 51, 117, 165, 176
shaky monetary system of, 253
stalling by, 232–233
supplying dollars, 8–11
Wall Street and, 25
Yellen as head, 111, 156
ZIRP, 56–57, 63, 67, 155–156, 164, 202
Federal Reserve Act of 1913, 3–4
the Fed. See Federal Reserve
financial crisis of 2007–2008
Brazil outside of, 54–57
cause of, 1
developing nations and, 4–7, 250
Europe and Trichet involvement, 182–183
extent of, 5–6
the Fed and, 3–4
US ignition of, 247
Fischer, Stanley, 220, 247–248
FOMC. See Federal Open Market Committee
foreign exchange (FX), 64, 69, 72, 78
Foreign Exchange Commission, 22
Fraga, Armínio, 247
free trade agreements (FTAs), 176
Fukuda, Yasuo, 135
FX. See foreign exchange
G3 banks, 159
assets of, 2
conjured money and, 230
global GDP and, 249
no exit plan, 248
policies of, 155, 179
G7 banks, 56, 184, 188
on Brexit, 237
Bush on, 24
currencies of, 12
demands of, 98
easy-money policies of, 141
the Fed and, 4
