Category: ECB Policy

How long can Cyprus stay in the Eurozone?

The decision of the Government of Cyprus to impose a one-off levy of up to 10% on Cypriot bank deposits has sent shock waves across Europe. When Mario Draghi announced last year that the European Central Bank was committed to do everything in its power to stabilise the single currency, it was widely assumed that …

Continue reading

Permanent link to this article: http://www.goldenguinea.com/how-long-can-cyprus-stay-in-the-eurozone/

Eurozone sovereign debt – dancing in a room where the clocks have no hands

The strong rally in world stock markets in January 2013 appears to be based on three premises. Firstly, that the Chinese economy has successfully avoided a “hard landing”. Secondly, the threat of a fiscal cliff in the USA has been averted. And thirdly, that the Eurozone crisis is now behind us. With these three impediments …

Continue reading

Permanent link to this article: http://www.goldenguinea.com/eurozone-sovereign-debt-dancing-in-a-room-where-the-clocks-have-no-hands/

Suspicious Minds – Is Mario Draghi leading the ECB into a Trap?

We’re caught in a trap I can’t walk out – Because I love you too much baby.   Elvis singing an anguished melody to a beloved partner with whom he is entangled in a difficult relationship? Or Mario Draghi serenading the euro? I was reminded about the lyrics of the classic Number One by an …

Continue reading

Permanent link to this article: http://www.goldenguinea.com/suspicious-minds-is-mario-draghi-leading-the-ecb-into-a-trap/

Central Bankruptcy. Why Quantitative Easing could threaten the solvency of the central banks

The news this week that the US Federal Reserve is recommencing its quantitative easing programme on an open-ended basis, and that the European Central Bank is going to start buying the bonds of the peripheral Eurozone States to fulfil Mario Draghi’s commitment “to do whatever it takes” to save the Euro, call to mind an incident in my own investment career …

Continue reading

Permanent link to this article: http://www.goldenguinea.com/central-bankruptcy-why-quantitative-easing-could-threaten-solvency-of-the-central-banks/

“Saving the Euro” – the Spanish Ponzi Scheme

Warren Buffett once sought to humanise international finance in the form of a person he called “Mr Market”. Mr Market, he discovered, has a manic personality, and is prone to swing erratically and unpredictably from roaring euphoria to almost suicidal depression. Mr Market’s reaction to breaking news tends to be out of all proportion to its likely …

Continue reading

Permanent link to this article: http://www.goldenguinea.com/saving-the-euro-part-two-the-spanish-ponzi-scheme/