by Nomi Prins
interventions of, 7, 145
liquidity instruments of, 170
money pumped by, 1
money-conjuring by, 120, 231, 251
on yen, 137, 152
G20 countries, 16, 56, 152
China meeting, 126–127
global recovery and, 166, 233
IMF and, 29, 96–97, 190
jobs and, 222
policy in, 11
summits of, 28–29
wage growth in, 9
Gabriel, Sigmar, 235
GDP. See gross domestic product
Geithner, Timothy, 21, 26, 31
barbs from, 93
debt crisis and, 205
on dollar, 140–141
meetings with, 38
yuan policy, 99, 105
George, Esther, 169, 172, 217, 234, 238
Germany
Bundesbank, 13, 208–209, 211, 213, 219, 222
Deutsche Bank, 3, 208, 242, 243–244
Draghi on, 236–237, 242–244
on ECB, 235
elections in, 244–246, 245
as partner, 130
See also Merkel, Angela
Glass, Carter, 4
Glass-Steagall Act, 1–2, 253
gold standard, 9, 104–105, 113, 250, 251
Goldfajn, Ilan, 83
Goldman Sachs, 2, 21, 76, 134, 154
Gonzalez, Mauricio, 17
Great Crash of 1929, 1
Greece, 197, 207
bailout, 195, 200–201, 203, 216–217
continuing problems in, 216–219
ECB attack on, 227–228
euro and, 225
Lagarde on, 227
Lew on, 227
recession in, 193–194
Greenspan, Alan, 22, 252
Greenwald, Glenn, 82
Grexit threat, 227–228
gross domestic product (GDP)
of Brazil, 60–61, 74–76, 78
of China, 129
currency adjusted, 2
of EU, 129
global, 124–125, 128, 249, 252
held by G3 banks, 249
of Japan, 13, 151
of Mexico, 15, 17, 30, 43
of United States, 192
Group of Thirty, 18, 108, 182
Grupo Economistas Asociados, 17
Guajardo, Ildefonso, 50
Guo Shuqing, 97
Hammond, Philip, 243
Harker, Patrick, 234
Harper, Stephen, 19
Haruhiko Kuroda, 133, 149
as BOJ head, 151–152
on Brexit, 168
credibility of, 160, 164
on economic growth, 166
as Helicopter Haruhiko, 163
on inflation, 157
on monetary policy, 171–172
on monetary stimulus, 160–161
money-conjuring of, 152, 156, 178
on NDB, 158
on QQR, 154, 156
Tarō Asō union, 171
helicopter money, 170–171, 234, 241
Hirofumi Nakasone, 139
Hiroshi Nakaso, 151
Hoenig, Thomas M., 144, 200, 254
Hollande, François, 214, 215
hot money, 36–39, 57, 61, 67, 75, 79
HSBC, 3, 58, 99, 101
Hu Jintao, 91, 94–95, 99
Hu Shulion, 129
Hung, Jochen, 225
IIF. See Institute of International Finance
IMF. See International Monetary Fund
inflation
BCB target, 58
BIS on, 231
in Brazil, 66–69, 76
in China, 89–90
in developing nations, 62
ECB and, 217
in Eurozone, 219, 243
Haruhiko Kuroda on, 157
Mantega and, 67
Mexico fighting, 20
Tombini and, 71
Institute of International Finance (IIF), 24
Instituto para la Protección del Ahorro Bancario (IPAB), 27
International Monetary Fund (IMF), 8, 66, 101, 178, 214
bailout fund, 202
on Brazil, 74, 78
Calderón and, 33
Carstens and, 16, 38, 44
China and, 93
developing nations and, 29, 47, 137
Europe and, 5
the Fed and, 10–11
G20 countries and, 29, 96–97, 190
Lagarde as head, 44, 47, 119, 201, 203
on misjudgments, 239–240
Ortiz at, 15
QE and, 221
SDRs, 88, 96–98, 116, 121, 123, 129, 250
Short-Term Liquidity Facility, 27
World Economic Outlook released by, 118, 231
on world financial conditions, 231–232
on yuan’s parity, 117
investor-state dispute settlement (ISDS), 176
IOF. See Credit, Exchange and Insurance Tax
IPAB. See Instituto para la Protección del Ahorro Bancario
ISDS. See investor-state dispute settlement
Italian Central Bank, 192
Itaú Unibanco Bank, 58, 64, 65, 83
Japan
alliance shift in, 175–176
collusion in, 12–13
creative money making in, 160–164
earthquake affecting, 144–148, 198–199
economic shifting in, 141–144
elections and stimulus in, 149–152
EU and, 179
the Fed and, 159–160
fresh opportunities for, 11
GDP, 13, 151
independent conjurers in, 155–159
money-conjuring by, 133–179
negative rates in, 164–175
overview, 133–134
point of no return for, 134–138
QE and, 133–134
recovery in, 148–149
Russia and, 175
stability in, 152–155
Trump and, 176–179
in worsening world, 138–141
Jiang Zemin, 87–88
JPMorgan Chase, 2–3, 18, 21, 99, 134, 183–184, 253–254
Jun Azumi, 147–148
Juncker, Jean-Claude, 229
Kamath, K. V., 116
Kamin, Steven, 205–206
Kauder, Volker, 211
Kazbekov, Vladimir, 116
Kikuo Iwata, 151
King, Mervyn, 142
Kissinger, Henry, 88
Knight, Malcolm, 17
Kocherlakota, Narayana, 172
Koichi Hamada, 163
Koji Takami, 135
Kumiko Okazaki, 175
Kushner, Jared, 52
Lagarde, Christine, 10, 11, 154, 202, 228
on Bitcoin, 251
on Brexit, 239
Carstens competition, 28–29, 38
China visit, 102
on currency wars, 152
on Greece, 227
as IMF head, 44, 47, 119, 201, 203
Zhou Xiaochuan and, 102, 122–123
Lautenschläger, Sabine, 226
Lehman Brothers, 21, 56, 90–91, 138
Levy, Joaquim, 71, 73–75, 77
Lew, Jack, 108, 111–113, 121, 125, 127
on Brexit, 239
on ensuring stability, 243
on Greece, 227
on philosophical differences, 222
on stagnation, 224
on structural reforms, 166
warning from, 156
on yen, 161
Li Keqiang, 107–108, 116, 119, 123, 124
Lin Zhouyan, 79
Lipsky, John, 25, 101
Lockhart, Dennis, 152
long-term refinancing operation (LTRO), 220, 233
Lou Jiwei, 108
LTRO. See long-term refinancing operation
Lula da Silva, Luiz Inácio, 53, 57, 61
graft conviction, 86
investigations of, 79–80
loan from, 97
on politics, 82
on rate hikes, 55�
��56
on Rousseff, 76
Ma Jun, 118
Ma Kai, 108
Maastricht Treaty, 185, 194, 211, 236
Mankiw, Greg, 220
Mantega, Guido, 55–56, 61, 100, 148, 202
capital controls and, 62–63, 66
currency wars coined by, 60
dismissal of, 71
inflation and, 67
on Meirelles, 59
on private banks, 64
on stopping contagion, 103
Masaaki Shirakawa, 133, 141, 195
as BOJ head, 135–136
on dollar, 137
on economic growth, 136
on economic outlook, 143
on Great Depression, 138
QE and, 138, 151
resignation of, 150–151
Masaru Hayami, 133–134
May, Theresa, 241, 244
MBSs. See mortgage-backed securities
Medina Mora, Manuel, 43
medium-term lending facility (MLF), 125
Medvedev, Dmitry, 109, 116
Meirelles, Henrique, 24, 62, 173
announcement by, 16–17
asking for independence, 55
BCB and, 53
becoming dove, 85–86
on failed creative economic policies, 70
firing of, 61
Mantega on, 59
money-conjuring by, 54, 70
rate reductions and, 57–58
return of, 82–85
SELIC and, 57
working of, 56
memorandum of understanding (MOU), 116
Mendes, Gilmar, 80
Merkel, Angela, 13, 188, 194, 246
on Brexit, 229
on euro, 145, 202–203
on the Fed, 191
on rates, 215
Mexico, 8
bailout, 28
beginning of US economic collaboration, 16–19
Brazil competition, 45
Carstens ascension in, 35–36
cheap money in, 28, 43
credit squeezes and bailouts in, 20–22
currency swaps with, 26, 42
dollar and, 30–31
domestic conundrum in, 11–12
the Fed concern over, 26–27
fighting inflation, 20
as follower, 43–46
foreign money and currency wars in, 36–37
four fateful days in, 22–25
GDP, 15, 17, 30, 43
growth and new president in, 39–41
history repeating self in, 27–28
hot money in, 37–39
Obama and, 31–34
ongoing US economic collaboration, 30
Ortiz exit in, 34–35
overview, 15–16
poverty rise in, 23
rate raises and, 46–48
seeking solutions, 41–43
status quo battles and, 28–30
Trump and, 12, 51–52
United States trade, 48–49
wall and, 49–51
See also Banco de México
Mitsubishi UFJ, 142, 144, 168
MLF. See medium-term lending facility
money, types of
artificial, 7, 51, 247, 249
easy, 66, 141, 208, 213, 231, 245
helicopter, 170–171, 234, 241
hot, 36–39, 57, 61, 67, 75, 79
pumped, 1, 37, 47, 110, 114, 139, 155–156, 183, 241, 245
See also cheap money
money-conjuring, 1, 13–14, 17, 46, 47, 66
alternative to, 234
banks fortified by, 196
by Bernanke, 193
by BOJ, 133, 139, 143, 149, 159, 175
in Brazil, 62–63
Brexit and, 238–242
by central banks, 98, 212, 241
in China, 111
collusion with, 87
by Draghi, 245–246
by ECB, 98, 175, 196, 205
era of, 218
by the Fed, 15, 31, 54, 88–89, 98, 114, 117, 139, 175, 254
by G7 banks, 120, 231, 251
growth and, 183, 221
of Haruhiko Kuroda, 152, 156, 178
by Japan, 133–179
by Meirelles, 54, 70
by PBOC, 110
projects funded by, 173
as scheme, 5
social issues and, 157
by Tombini, 71
in United States, 254
world of, 26, 89
Monti, Mario, 202
Morgan Stanley, 2, 142
mortgage-backed securities (MBSs), 183
MOU. See memorandum of understanding
Nabiullina, Elvira, 116
NAFTA. See North American Free Trade Agreement
Naoto Kan, 143
NDB. See New Development Bank
negative interest rate policy (NIRP), 13, 63
Neves, Aécio, 70
New Development Bank (NDB), 81
China and, 120–126
developing nations and, 115–116
Haruhiko Kuroda on, 158
opening of, 116, 250
New Developmentalism, 81–82
Newton, Isaac, 3, 253
Nikkei stock index, 118, 136–137, 143–144, 151–152, 157–158
NIRP. See negative interest rate policy
Nissan, 149
Nixon, Richard, 90
Nobuteru Ishihara, 173
Nogueira Batista, Paulo, 116
North American Free Trade Agreement (NAFTA), 15, 19, 26–27, 51, 52
North Korea, 130, 254
Noyer, Christian, 47
Obama, Barack, 40, 41, 51, 146, 153, 205
on China, 93
Hu Jintao meeting, 99
Mexico and, 31–34
reelection of, 149
on supranational reserve currency, 96
tariffs and, 109
OECD. See Organisation for Economic Co-operation and Development
Operation Car Wash, 79–80, 83
Operation Twist, 115
Organisation for Economic Co-operation and Development (OECD), 9, 36, 197
Ortiz, Guillermo, 11
Bernanke meeting, 23–25
as BIS head, 32
as bulldog administrator, 15–16
on credit freezes, 17
on emerging markets, 30
exit of, 34–35
at IMF, 15
rate cuts by, 32
rate-hikes by, 20
on touching bottom, 33
US dollars announcement, 22–23
US ties of, 18
at World Economic Forum, 16
Osborne, George, 229
panic behavior, 31
Panic of 1907, 4
Papademos, Lucas, 190–191, 193, 204
Papandreou, Andreas, 195, 203
Paulson, Henry, 18, 21, 24, 53–54, 55, 186
on China, 90–91
on exchange rates, 90
PBOC. See People’s Bank of China
Pena Nieto, Enrique, 40–41, 51
People’s Bank of China (PBOC), 8, 12, 126
BOJ alliance, 175–176
currency swaps, 110, 112, 154, 175–176, 218
dual rate decision of, 98
intervention by, 115
liquidity tools of, 125
money pumping by, 114
money-conjuring by, 110
North Korea and, 130
rates cut by, 88–89, 91–92, 104, 105–106, 114, 120, 210
rates raised by, 90, 100–101, 109, 128–129
RRR in, 64–65, 88
Tripartite Bank Governor’s Meeting, 97, 140
yuan and, 105, 174
Zhou Xiaochuan as head, 87–88, 108, 120
peso
Brexit and, 49
depreciation of, 21–23, 50
performance of, 233
protecting, 48
rise of, 31–32
speculation on, 26
Petrobras, 72–73, 75, 77
Pettis, Michael
, 124
PIIGS countries, 101, 194
pledged supplementary lending (PSL), 125
Poiré, Alejandro, 49
Portugal, Murilo, 64, 66
Provopoulos, George, 195
PSL. See pledged supplementary lending
public sector purchase program (PSPP), 226
Putin, Vladimir, 112, 115, 129, 175
QE. See quantitative easing
quantitative and qualitative easing (QQE), 12, 152, 154, 156, 163
quantitative easing (QE)
addiction to, 249
benefits of, 167
Bernanke and, 110, 147
by BOJ, 138, 159–160
defined, 1–2
Draghi and, 225–226, 245
ECB and, 188–193, 208, 221
expansion, in Europe, 230–238
by the Fed, 42, 46, 63, 67, 81, 95, 100, 106–107, 115, 143, 146, 159–160, 211–212, 224
IMF and, 221
infinity, 14
Japan and, 133–134
Masaaki Shirakawa and, 138, 151
no-limit, 193–198
risks of, 135
Stiglitz on, 252
Rajoy, Mariano, 206
Rakoff, Jed, 72
Ramos, Alberto, 67, 84
rates
of Banco de México, 31–32, 41, 46–47, 49, 51–52
of BCB, 69, 75–76
of BOE, 187, 240
of BOJ, 119, 137, 164–175, 210
central banks and, 252
of ECB, 37, 169, 187, 189, 198–199, 201, 210, 220–222, 230, 233–234
of the Fed, 22, 37, 46–48, 51, 117, 137, 138, 165, 176
FOMC on, 240
in Japan, 164–175
Lula da Silva on, 55–56
Meirelles and, 57–58
Merkel on, 215
Mexico and, 46–48
NIRP, 13, 63
Ortiz and, 20, 32
Paulson on, 90
of PBOC, 88–92, 98, 100–101, 104–106, 109, 114, 120, 128–129, 210
Tombini and, 67
Yellen on, 172
Zhou Xiaochuan on, 110, 112
ZIRP, 56–57, 63, 67, 155–156, 164, 202
RCEP. See Regional Comprehensive Economic Partnership
real, 58, 60–61, 64, 66–72, 75, 83
reducing reserve requirements (RRR), 64–65, 88
Regional Comprehensive Economic Partnership (RCEP), 50, 128, 177, 250
renminbi (RMB), 90, 98, 116, 119–120, 125, 176, 218
SDRs and, 250
World bank on, 200
See also yuan
Romer, Christina, 220
Romer, Paul, 135
Romney, Mitt, 41, 108
Roth, Jean-Pierre, 32
Rousseff, Dilma, 57, 62
austerity policies of, 73–75
call to private banks, 65
criticism of, 70
demonstrations against, 68
election of, 61, 63
errors of, 86
impeachment of, 77, 82, 84
Lula da Silva on, 76
at Petrobras, 72, 75
platform promises of, 69
reelection of, 71
RRR. See reducing reserve requirements
ruble, 112, 115, 231, 233
Russia, 5–6, 148, 231
BRICS meeting in, 97
China and, 99, 103, 111–117, 174
Japan and, 175
Ryan, Paul, 207
Samaras, Antonis, 210
