central bank money have been made before. nobel laureate proposed giving access to deposit currency accounts at federal reserve banks over three decades ago. a number of things have changed since tobin's proposal. the use of cash has declined, major financial crisis may have changed some people's attitude toward commercial bank deposits and offering the potential for issuing digital central bank money in a new way with enhanced features. i offer two examples. fir, the peer-to-peer aspect could allow central banks to provide digital money with anonymity property. whether or not the central bank would want to do this, legitimate demands for privacy, concerns related to tax evasion and other criminal activities. second, there is the potential to improve upon cash. programmable money allows trading partners to hardwire the terms and conditions of trades into their transactions so that they may be executed upon fulfillment of these conditions without relying on third parties. particularly useful for transactions that span multiple

banks. these are centralized accounts. in the event that your cell phone was lost, you would have access to go to the bank, reveal your identity and get your account reinstated. or you could probably do that online. dr. garratt: sweden has issued this report where they are considering alternative technologies but those are still just proposals. among those technologies they are considering is that revalue technology. >> china adopted digital transactions for consumers. balance withcount the two big players whose name i forget. these are essentially -- everybody has a balance on that. governmentme operation behind it? is there a central-bank operation behind it? >> this on -- you can link it to your bank account. sweden is considering two options. they have a system where they have electronic deposit accounts, all of these values, digital cash onto your electronic wallet, this could be like a credit card. those are the two options in sweden being considered. this is mr. williams from texas. mr. williams: thank you for this h

furthermore congress and administration should do all they can to ensure the central bank never offers retail bank accounts to the public whether through crypto currency or the more traditional digital form of money that would give the federal government a complete monopoly to effectively nationalize all credit markets no private entity could compete with the federal government for fun. even a staunch advocate forces people to use only one type of digital money admits the biggest threat is often the government itself now that is an understatement given the federal government the power to directly take money from the citizens with a few keystrokes to stabilize the economy jeopardizes economic freedom it is a terrible idea congress' duty is to attack the americans from those tyrannical acts. thank you. >> doctor your recognizer five minutes. >> thank you for the opportunity to testify in front of you regarding digital currency broadly defined for the financial system. i should note i had to look at the choice to spend the afternoon buying that coin or start working on a paper about digit

foster make the point is not only our own central bank but other powerful central banks we might think about in this context.. the general public. in addition to carrying around its paper currency in the appeal of this idea to central banksar as a natural. it would greatly increase their size, their role in their power. there is not much singing in the way. with all private banks. that's where tried to develop out of. could a federal reserve digital deposit account system grab half of them might not. it would be $6 trillion which would ask that the balance sheet to $10 trillion.an it's to remember that if you had deposits on one side. if something else on the other side. so what would they do with this amount of deposits and as my friend said. it would have to make investments. i think we can safely predict the credit allocations with the highly t politicized and the taxpayers would be on the hook. the risk would be directly in the central bank as opposed to the support of something else. it is one of the worst financial ideas of recent times. it's still quite conceivable as the possib

such as very orthodox central bank. low has made it clear he once to try and save nafta. he was a fiscal hawk when he was the mayor of mexico city. mark: he will spend, spend, spend. particularly. the initial soundings have been good. a lot of negativity around mexico, like turkey. both currencies undervalued, but one has got a strong independent central bank, very standard behavior, so if the u.s. raises interest rates, it raises interest rates. it has managed to drag inflation down from a year ago in turkey --the opposite comes abou opposite, so that is a concern when it comes to the turke -- to the turkish president. mark: there are all sorts of central banks in the em space raising rates to defend the currency's. talk about other idiosyncratic examples and maybe some opportunities within the em space. john: another good opportunity is india. i think you have someone who is hell-bent on reform and they have made extracts. five years ago, they would have been in the fragile five alongside turkey, but they have reduced

really wanted some strong showing from the central bank of turkey and they did not get it. inx: they also pointed out the language they said the bank says it will wait for delayed impact of previous monetary policy decisions and fiscal policy on inflation. that seems to basically be president trump stream. -- president trump's dream. remember the central bank earlier increase the rate and did not do enough and they had to come back for a second bite. i will be following that for the next couple of hours. you can find all the charts we , click on our chart we used and hang out with it all day. more on the big earnings week for the s&p 500 companies. we will discuss. this is bloomberg. ♪ alix: -- >> this is "bloomberg daybreak." verizon wants to partner with google and apple in its effort to rollout 5g service this year. verizon wants one of those companies to provide televisions when the services offered in los angeles and sacramento. the wireless giant came up short in trying to develop its own tv service. -- after a month-long review, they've decided to spin off its animal

the central bank governors meeting some basel she's the one preaching orthodoxy almost all central banks have either negative interest rates very low interest rates or some kind of extraordinary monetary accommodation and here you've got the central bank or russia with the highest real interest rates in the g twenty they are. pursuing what the i.m.f. would call a classic conventional policy when he said that at the time that it was a classic conventional policy this is how you would respond but you can't have capitalism without capital and you can't have capital without an interest rate sufficient to attract the savers without savers you don't have an economy and that's what they're doing in russia and america also in the world there think that you don't need savers you don't need wages you don't need workers you can take interest rates down to zero you can rely entirely on mergers and acquisitions and accounting fraud is the bernie made off model in america versus you know eisenhower in russia this is the russian economic policy of the runtime is eisenhower you know actually if you can

we will talk through a big week for central banks. isions from the boj, the fed, and the bank of england. this is bloomberg. ♪ ♪ good morning. this is bloomberg daybreak. mnuchin versus the economist, predicting sustained annual growth for the next four years. time to this tech. bank of america recommending shorting fangs. bonanza.ank policymakers in japan, the u.s. and the u.k. meet this week with hikes expected from the r.b.i. and the uab. we are just under an hour away from the european equity market open. looks like we could see a down day on this monday in europe. we saw the u.s. close lower on friday in terms of the s&p 500 and the nasdaq. we have seen some weakness in asia, snapping four days of gains. if we get a little recession in europe, that would snap two days of gains on the stoxx 600. looks like there could be some broad-based losses on the indices on this monday. if we look at how the bond market how -- might ship up, we have a cash market open right now in europe. dse 10-year treasury yiel have been steady. we had anot

and he talked on one of your programs of the fact the central bank and expect to be independent, which worries markets and you lose banker. when he sent his finance minister out in the past, he talked of the top it the president directed the central bank in a different direction. without that anchor, assets don't look attractive. the problem is the real yield available on that on is close to zero and it will need to go up to interact -- to attract investors. mark: a big day for the central

governors meeting some basel she's the one preaching orthodoxy almost all central banks have either negative interest rates very low interest rates or some kind of extraordinary monetary accommodation and here you've got the central bank of russia with the highest real interest rates in the g twenty they are. are pursuing what the i.m.f. would call a classic conventional policy where he said that at the time that it was a classic conventional policy this is how you would respond but you can't have capitalism without capital and you can't have capital without an interest rate sufficient to attract savers or that savers you don't have an economy and that's what they're doing in russia in america or in the world or think that you don't need savers you don't need wages you don't need workers you can take interest rates down to zero you can rely entirely on mergers and acquisitions and accounting fraud is the bernie made off model in america versus you know eisenhower in russia this is the russian economic policy institute run time is eisenhower you know that actually if you can learn fr

traditionally we want , andendent central banks the central bank is not by various political measuresthe key reason you don't want that is because prior experiences where there has been a political influence on the fed have generally led to a dna kring of the fed -- has led to oring and you generally lead to a higher inflationary environment. the recent example of turkey is a great example where there has been a complete collapse of the currency, bad policymaking that goes hand-in-hand with political influence from erdogan. haidi: thank you so much for spending time with us, greg daco . remember bloomberg users can interact with the charts and browse recent charts featured on bloomberg tv. you can save the charts for your future reference. this is bloomberg. ♪ ramy: welcome back. haidi: you're watching "bloomberg daybreak: australia." a quick check of the latest business flash headlines, qualcomm is said to be in china for less this talks a wristers suit of a semiconductor company. chinese regulators have been taking part of the past few days. the deadline for the $44 billion deal exp

next week, a rate decision from the european central bank, and we have a g20 weekend meeting of financeanother round of earnings including european banks and stantec -- fintech. i am joined by bob michele. i want to go over your for conviction traits. do you believe the federal reserve will raise former times and then close? bob: absolutely. that brings the fed fund rate to 2.75% to 3% depending where inflation is. that is a real yield of about 0.5% to 1%. that is still generous by historic fed terms, but not overly accommodative. they will have raised rates for 3.5 years. why not step back and see what other central banks are doing and also see how the economy is doing a year on? jonathan: that takes me to the second conviction call, duration. bob: we are bearish. as the fed raises rates and supply hits the market and quantitative easing switches to quantitative tightening yields , will drift higher across the curve. we want to hide in the front end of the curve. short securitized for example. jonathan: do you see that more pronounced in europe or in the united states? bob: i think mor

we have had the bank ofjapan meeting about central bank action.

that could of the central bank an excuse to hold off. uisse is giving investors reasons to stay with the banks are as restructuring. they had a profit higher than expected. gains in the wealth management is this offset the continuing weakness in trading. and spoke with the ceo. >> this was a very good quarter for credit suisse. assets, whichve is very important for us. if you add in the asset we are adding to the bank every six months. more ofwe will have that interview coming up. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. tom: thank you so much. let me get to the data please economic growth is a little bit light. at gets my attention, but what really gets my inflation is the inflation statistic is up. that's the fastest in six years. that's an interesting mix. it shows the challenge we see in central banks as witnessed by the bank of japan. i will try to get the bank of japan story out. it's extremely well done. we will try to get that out on twitter. the g

because so many of the people now in charge experience that crisis for instance the head of the central bank elvira nab ilana was a deputy economy mr alexei kudrin a close putin advisor and chairman of the accounts of chamber was a deputy finance minister german graf the chief executive officer of the state controlled sperm bank was a deputy minister of state property these people want to make sure that it never happens again on their watch so long as this economic team is in charge there won't be another crisis and russia people criticize us or they question us and they want to know why we're not more quote critical of russia the real question is how come we're not tooting russia's horn more because they are been genius during this crisis but that would be i think a little bit you know over the top to simply point out all the good things that they're constantly doing so we just try to take a more balanced middle of the road approach that's you know the fact is that they're making all these other economies look stupid by comparison certainly all biran abilene as martin gellman goes on to say

tom: we are going to have the most interesting central-bank week for you. e continue. bloomberg surveillance on bloomberg radio. good morning. ♪ ♪ >> short banks. bank of america says the thatook selloff proves tightening may be happening. bank of japan buying and limited lawns, and traders bet on changes to its yield curve control policy. that boe and the fed are on deck. and, les moonves is under fire. his future will be discussed today after explicit sexual harassment charges, but who is really in charge. >> welcome to "bloomberg daybreak." the are here in a new york, a lovely weekend weather was. we hope you had a nice time. >> yes, there was a lot of tod lanter indoor play. a lot like july national a lot play.dler indoor how does that happen in gillette in the new york. >> any kind of shareholder it was all the

if you are the administration, you're looking at a central bank -- your own central bank actually continuingten rather than trying to accommodate the reverse tariffs. jonathan: for many it is a global story. global growth is dispersed. as someone managing e.m. debt, are you looking at more on the asia becauseis ex- of the trade story? diana: exactly. we think the impact for tariffs will be disproportionately heavy on asia. we are steering clear of the region until we get more clarity on where the trade tensions are going. we like latin america. a lot of value has been created. plus, we are getting past the election cycle. we had columbia, and mexico had the elections. brazil is getting closer to the point, but markets have enough premium. jonathan: local dollar? -- local or dollar denominated? diana: local, but very select. so pick your spots. jonathan: china has had its problems. policy mistakes and central banks struggling to regain credibility. brazil also having a bit of a stumble as well. why latin america for you guys at the moment? bob: i think there are a number of things. when i thi

with inflation running about three times the central-bank target, it's fair to say that the central bankof credibility. that meeting is going to be the first one after the cabinet reshuffles. it's going to be a big test to see if they are ready to go on the right path to tackle inflation. given,he government has as they have before, this allowance for the central-bank to go ahead. that's why they consist -- that's why it's going ahead. would you still think is a central-bank that has no independence or little independence? is lookinghe market for some clear signs of the central bank is serious about tackling inflation. need to see a lot more in terms of changing the overall policy framework. donnelly looking at tighter monetary policy but also stands from the government. matt: the reason this matter so much right now is that the debt has fallen so much recently. it's down 30% in the last round. the lira has weakened so much. it doesn't seem like institutional investors are ready or willing to go back in there and buy. what you need to see before people can pick up that debt? we are deali

coming up over the next week, a rate decision from the european central bank, plus you have a g20 weekendf finance ministers. another round of earnings that includes big tech and european banks, and the latest reading on u.s. gdp. for some quick final thoughts, i am joined again by bob michele, global head of fixed income. bob, we want to go over your four conviction trades. the first one being you really believe the federal reserve will raise four more times and then pause. why? bob: absolutely, because that brings the fed funds rate to a range of 2.75% to 3% depending where inflation is. that is an all-star real yield of about 0.5% to 1%. that is still generous by historic fed terms, but not overly accommodative. they will have raised rates for 3.5 years, why not step back and see what the other central banks are doing and also see how the economy is doing a year on? jonathan: and to wait it out. that takes me to your second conviction call, which is short duration. bob: as you know, we are bearish on yields. we think as the fed raises rates, supply hits the market, and quantitative eas

ask whether the russian central bank sold them to support the ruble in april but it's about changing allocation as reserves continue to grow said latimer midwest chef ski senior economist at downscale bank in helsinki rising u.s. eels have fueled the sell off right while global debt to g.d.p. is almost three hundred percent you know countries like japan it's way higher and one big central bank of the world in twenty eighteen twenty nineteen will go bust probably the bank of japan but could be the european central bank and that will be an enormous catastrophe in the financial sector and gold will be a safe haven play and russia is anticipating this because it's been trying to do trade with the west for a long time fifteen years sixteen years under putin and the west america keep projecting this over to your let's trade let's trade but they keep categorizing and putting russia into the camp of this is why hillary lost and they don't want to do trade america has given up on being a free market economy and wants to be a top down polar bureau driven price fixing central bank led dystopian

emma: china's central bank signals a shift toward stimulus. turkey does not tighten and the lira shutters in response. >> investors are losing faith in the central bank's independence. emma: corporate earnings reports come in fast and furious. >> we want to be a global carmaker. >> that was a disappointing result for us in the quarter coming from china. >> we chose ipo because it maximizes the value for our shareholders after-tax. >> i am confident the rest of the year will be ok. emma: in an exclusive interview, deutsche bank's chief executive insists the lender is not losing ground in fixed-income trading. >> they see us as the european bank offering the full range of investment banking. -- corporate investment banking services. emma: plus, perspective on the global economy from leading figures in banking and finance. >> i think it will be increasingly difficult for fixed income investors to do well. >> the outlook for commodities is positive at the end of this year. >> i don't see, at this point, barring a trade war, any serious problems wi

turkey's executive president will appoint the countries central bank governor. the lira saw its biggest drop since the failed coup in 2016. donald trump rex -- takes bret kavanaugh for the supreme court very -- court. this is what the futures look like this morning. a very flatng at story in europe. the story out of asia, despite what happened in china, quite positive. china flatlining, but a solid day yesterday. . massive day yesterday let's turn our attention to the gmm. there are standout stories. turkey up there as well. the s&p was up by 0.9% overnight. the turkish lira is bouncing back this morning after a massive move. the biggest since the coup of 2016. that was on the downside. today, strength returning. the gip two on your bloomberg. we are risk on. the south korean yuan softer against the dollar. where is the pound? the pound has just dropped out. volatility jumping on the back of political news. the cable rate is still trading above it's one month average. if you take a look at what is happening in the options market, the volatility has jumped. i was

central banks moved to weaken daily currency fixing, the most since 2016.oining me to discuss china and emerging markets is a diana amoa, senior portfolio manager at j.p. morgan and still with me michael -- -- bob bob michele. with what is happening with the currency policy, things have changed. what the chinese are doing is the right response. what we have seen is they stepped back from the currency. they are willing to let the trade determine where the is. -- they areg to willing to see where the market is pricing it. that is a good response. for the pboc it is the right thing. they will allow some banks to invest again and ease regulations. liquidityo redo track -- they are trying to redirect liquidity. the chinese are having the right response. jonathan: there are many ways to look at the giants -- chinese currency. when you look at it, what story do you see? lisa: i think the dollar and the currency is trading roughly where we think fair value is. depreciating in the trade basket, looking at euro and asian currencies. that makes sense. the trade right

it is the first test of the central bank after announcing his promotion. -- is the jury failing to deliver? absolutely not. this was a fake from the turkish banks. not so much that they do not hike, but they did not send a clear message about where the country is headed and what their agenda is. they basically disregarded the fact that the market was price hiked and acted like it was a regular meeting. their language was shocking in the context of not technology and the need to send a clear message after having 15% inflation and having seen emergency hikes already up until this point. they were much too complacent. it does not mean they cannot recalibrate. the key issue is, is the government interested in recalibrating. i would stress that it is wrong to say that this means erdogan suddenly taking over the central bank, he has been told -- evolved -- involved directly. we are never seen rate hikes in less the market is forcing rate hikes. that did not change, because before the ruling, the market was not punishing the lira. it was almost as if the test only can be shown once the lira is un

live 24 central bank meeting, is pressure on the central bank to raise rates and doesn't matter?he pressure is definitely on. rate increases when borrowing costs are 20% and the fear of being lost kicks in. at this level, whether it will have further impacts are not, in the real economy, the inflation has made it strong. that is adrift. reallyl band-aid will cure the disease, and that is the key problem for them. scarlet: it is clear from market reaction that turkish stocks, turkish bonds, the turkish bank has been behind the current. thought that they will be able to recover and fight inflation? to somean: well, extent, it is out of the hands of the central bank now. turkey has entered a debt spiral, where inflation is weakening the currency. and the weaker currency is feeding inflation. a threat to fiscal policy, so the ball is in the turkey presidents court under the inflation and there is actually liberal the central bank -- actually little the central bank can do. before the meeting, they could raise given the markets are pricing, and some rate increases could be tried as th

as is a central bank verbal intervention. asy can't be seen depreciating the yuan for a couple of regions -- reasons. does wonders for global stocks as we saw a year or so ago. we have a central-bank just trying to calm the storm. they still have a situation where they may have to lower the reserve requirement for medium-term lending facilities upcoming which would weaken the currency's so they can't have it all going one way quickly. david: there was thought that they were weaponize and the yuan. is this a form of disarmament? >> you could think of it like that.

alix: the big week for central banks kicking things off with the bank of japan.gayeski and stephanie flanders. her recent interview with mark carney is the cover story for bloomberg markets magazine. we will talk about some of that interview. troy, you can see what's happened to the 10 year yield over in japan. 1/10 of 1% is where it sits. as a traitor, investors, what do you need to watch for? troy: if you see material moves higher, a basis point or two is not considered a material move in japan, perhaps we will see a steepening of the yield curve in europe and the u.s. one of the reasons we have an artificially low back and of your curves is because of central discontinued central bank intervention. , ecb isoj starts moving going to be tapering more aggressively predicting future hikes. if the fed continues on their path we could see the yield curve steep and backup. alix: it's hard if you like that is a huge move. in terms of capital flows what is the significance of a change? stephanie: the bank of japan has been the final frontier for the global bond market.

whenever a central bank launches qe, currency tends to weaken. erg reported today that one of the largest chinese banks perhaps selling dollars. we maintain bullish view. anna: we keep our ears open. we did see that not long ago. what about the dollar side of this? we were focused on the dollar against the yuan. in terms of the dollar technicals, how does that fit into your picture? strategy ishe em fx one of the most important charts that i monitor closely. throughout last year, we started bottoming in q1, and then in april, we broke higher quite convincingly. went through a period of consolidation. this consolidation can be described as a triangle pattern. over the past few days, what the dollar has been trying to do on the back of hawkish comments from powell, is to try to break higher. it signals that the dollar may try to resume those trends. anna: interesting how the dollar didn't listen to the for now part. thank you very much. emerging markets fx strategist at rob lafranco. a few stocks we are watching, becker, the belgian company. telia,

on thursday china's central bank will be lowering the ratio of reserves that banks are required to keepn and in an attempt to boost lending. —— keep on hand. trade tensions with the us drag on. and speaking of those, we will be keeping a close eye on friday because of that is when us ta riffs of friday because of that is when us tariffs of $50 billion on chinese goods go into effect along with chinese retaliatory tariffs. a strong us dollar and rising interest rates, will australia's central bank make any changes? only after we see a pickup in wage pressure and stronger inflation, then we might see the rba do that but did not think that will happen any time soon. maybe at the end of this year as the earliest. we heard about what the chinese central bank are having to do but reducing the ratio requirement takes effect this week, for the third time this year. what are they trying to accomplish? finding a balance between the objectives, to support solid economic growth and that is why it you need accommodating monetary conditions and the other thing is policy makers are trying to contain r

everyone is watching for the central bank. ts and clues can we see with yield curve control? what can we focus in first-quarter earnings? gareth: that is right, the three largest banks reporting this afternoon, and listening to analysts in the past week, we are thinking there could be a slow earnings this time with on target. the boj it is traveling with slightly less than 20% progress. interest rates have gone in the last 12 months or so. they had been faring worse in the ultra low environment because they lend to larger corporate customers which has a lot of spreads in the first instance. we will be looking to see how the three banks have fared in the negative interest rate environment, but as you have been saying the banks of japan and what they do will be the larger effect in how the banks are impacted. we saw that last week with rumors of policy tweaks emerging over the weekend and next year jumping on monday and reaction to that. ramy: expectation to talk and action. let's go deeper into options the boj might have to twea

a big week for central banks. bring you highlights from a recent interview with the boe governor mark carney. how he is preparing for brexit. mackinnonar from neil , his take on trade tensions between the u.s. and china. this is bloomberg. ♪ . this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. caroline: this is "bloomberg markets." it's time for the bloomberg business flash, a look at some of the business stories in the news. bmw is trying to offset the cost of higher tariffs by china's trade war with the u.s.. the german automaker is raising the prices of some mid-size sport utility vehicles in china. these are built in the bmw factory in south carolina. tesla has raise rice -- prices in china. casino operators in the u.s. are jumping into the business with this up in court clearing the way. they are teaming up with mgm resorts national each putting in a $100 million set up for online betting in the u.s.. caesar's will start taking sports bets at two casinos in new jersey this week. beerorld's sec

overnight we saw a rather intense qe from the chinese central bank. the director -- they directed larger banks to extend lending. if they were to lend or buy corporate bonds below aa plus they will get two-for-one. there's a real push by china. they are suffering a bit of a credit crisis to shore up a trend of corporate defaults. the backlash of that is the weaker currency. they were trying to support their economy. safe -- same thing with every country. when the central bank adds excessive liquidity, that is what happened overnight. the dollar strengthening across the board. is really exclusive to china. it bleeds into the emerging markets. not necessarily broad dollar gain or loss sort of thing. how does the balancing act for the federal reserve play out? if we have to look at what happens with emerging markets. the u.s. fed has to keep an eye on what's happening at home. you have to balance it out with these comments on the dollar. how does that balancing act play out? >> it is a very tricky balancing act between the two great economies, the u.s. a

i think european central bank would like to prevent that yield curve in version because of the way europeannsurance companies and banks have their investments may within other european country sovereign debt. ramy: does that mean it's a better way, and shouldn't the fed be doing that? constance: this is all uncharted territory. we've never had central bank balance sheets disclose. pox -- abruptly $60 trillion when we add it all up. ramy: let's talk about the biggest risk to the ecb. it seems like on the u.s. side, strong economic growth, were seeing growth in china, depending on what you look at, things seem to be pretty good in most major places. i would say the biggest risk for the global economy in general and the ecb in particular is just that there has been a huge amount of debt that has been amassed around the world since the global financial crisis. low interest rates have spurred a real expansion of debt. so when we look in europe in particular, i would say the most vulnerable country is italy. there is political nervousness about italy, their bond spreads widen out and the refinanc

the bank has to deposit between one and three percent so at least one hundred year ends with the central bank that said in return the bank is allowed to transfer ten thousand euros to the customers account at the push of a button and the bank generates ten thousand euros of any tronic money from one hundred euro's and in return it connects the interest this creation of deposit money is a license to make money. bangs not to split the banks are happy of course that they can do this because that gives them a free reign they get to keep the profits the scene your age that's a few billion every year who want to miss out on that definitely not them. gobs of private banks basically create new money as they wish not used to be the privilege of the millions of princes and governments. it's a privilege to create money and therefore profits out of nothing this privilege has been in the hands of the financial industry for a long time and didn't recent years it's been unchecked is that really such a good idea for us. the big banks in particular have massively increased the money deluge in this way as a wa

rising because i just read nomi prins us books has a book out called collusion you talk about central banks colluding something that you know we've talked about something that's known pretty much in the in the community that when one bank is tightening others vaal get more accommodative easing e.c.p.a. bank of japan federal reserve bank so is this cycle what's being called quantitative tightening in the us is it being completely offset by other central banks doing the reverse and so the. net amount of money printing in the world continues to go up as a genuine contraction it's a great question i would argue that the answer is no you see trump has been a wrecking ball not just in terms of his u.s. political race he's actually reminded countries that they start they have to be selfish again we're seeing it in trade we're seeing it in economic policies and i think we're even beginning to see things say in italy where it's starting to break apart from the e.u. it's talking about nationalization it's talking about a different currency so i would argue that the great fear in terms of the next tim

no central bank but all institutions and in this country are on the sweat. and we don't have any freedoms. in the simplest solution. per. the ones influence over the central bank has accelerated the turkish leaders depreciation global investors have been pulling their money out of the country for months sending the lira tumbling twenty five percent against the dollar since the start of this year. that's made imports much more expensive. businesses are increasingly this is a. more for. economic growth tops the list of better ones priorities that's why he continues to avoid raising interest rates but that policy in turn is contributing to the rising inflation it's a vicious circle that's accepting a lot of turks. some economists even joke that the lira is turkey's last remaining opposition policy. making bells as a labor intensive and time consuming process the gallon aapl this family has been making them for over two hundred years theirs is the last remaining bell making business in greece when the financial crisis struck brothers christos and tomas refuse to

central-bank tightening ahead of us.me giveback for growth as some of the tax effects are temporary. one thing that is interesting is how the bank of england is more fractious than the other central banks. are they going to lead in the onate as we see more dissent rates rising and inflation? does the bank of england lead that that they? >> what the bank of england is confronting is a negative supply shop in the form of brexit, smaller labor force, less migration, higher domestic prices. central banks have not had to confront negative supply shocks very often. the last 20 years has been about greater migration and greater trade. that dynamic where inflation could go up even if growth is not improving, which is a very realistic way to look at our longer-term u.k. forecast under a more negative brexit outcome, that is a scenario central banks have not had to deal with for a while, but it is a real possibility for the bank of england and a real challenge. tendency away a from soft brexit, a norway solution, towards something

benefiting hugely as a result as pica takes planes money isn't neutral after all it's not the central banks but private banks that generate most of this new money a process also known as deposit money creation get continued very money is created when someone goes to a bank to take out a loan the bank opens an account and issues the funds but it's then in a contract with the individual who's taken out the loan the bank hopes that person will pay it back someday that means the original impulse to create money comes from private banks. that's new to most people. many think a loan works like this save his take money to the bank and the bank loans this money to a customer such as someone buying a house or running a business. that's not the case if someone has savings and their money is parked in a savings account the advantage for the bank is that person can't just take it out when the bank issues alone it's created from nothing these two processes really don't have anything to do with each other even though it looks that way even though that's what the textbooks say this is how it works a custo

is almost three hundred percent you know countries like japan it's way higher and one big central bank of the world in twenty eighteen twenty nineteen will go bust probably the bank of japan but could be the european central bank and that will be an enormous catastrophe in the financial sector and gold will be a safe haven play and russia is anticipating this because it's been trying to do trade with the west for a long time fifteen years sixteen years under putin and the west america keep projecting this over to your let's trade let's trade but they keep categorizing and putting russia into the camp of this is why hillary lost and they don't want to do trade america has given up on being a free market economy and wants to be a top down polar bureau driven price fixing central bank led dystopian economic nightmare so russia saying ok fine we'll just keep buying gold until this thing blows well it's not just russia's many countries we're going to get to that in a bit but i think. you know there's this notion that when a sim amie is coming when a big major event whether it's a collapsing

benefiting hugely as a result as pica takes planes money isn't neutral after all it's not the central banks but private banks that generate most of this new money a process also known as deposit money creation get continued very money is created when someone goes to a bank to take out a loan the bank opens an account and issues the funds but it's then in a contract with the individual who has taken out the loan of the bank hopes that person will pay it back some day that means the original impulse to create money comes from private banks. that's new to most people. many think a loan works like this savings take money to the bank and the bank lends this money to a customer such as someone buying a house or running a business. that's not the case if someone has savings and their money is parked in a savings account the advantage for the bank is that person can't just take it out when the bank issues alone it's created from nothing on these two processes really don't have anything to do with each other even though it looks that way even though that's what the textbooks say this is how it works