means the dollars yellen fed is removing could be compensated for by cheap euros from the european central bank the result may be enough cash sloshing around to underpin this year's run up and risk asset yet it's always you i told you all about this six months ago remember ben bernanke in the janet yellen they started something called tapering and i said that's nonsense because of the global basis there is no taper because the european central bank would really pick up the slack and then add even more to the global supply of fake money during this quantitative easing period that's exactly what this story is telling us tapering is a lie there is no tapering because one big global slush fund and the e.c.b. picked up and did much more than the ten or twenty billion dollars a month that bernanke you know yellen is taking away from the system there is no tapering because you can't taper a ponzi scheme. until two outcomes a bond collapse or be a war well also you know the fact is that you have these you know the potato wedge in this case is the cheap money and then they're just pouring it into risky

means the dollars yellen fed is removing could be compensated for by cheap euros from the european central bank the result may be enough cash sloshing around to underpin this year's run up and risk asset yeah its own. i told you all about this six months ago remember ben bernanke in a janet yellen they started something called tapering and i said that's nonsense because on a global basis there is no taper because the european central bank would really pick up the slack and then add even more to the global supply of fake money.

nothing right every single central bank of the world's been co-opted by the federal reserve bank bank of japan the bank of england the other major ones they now want the european central bank which let's face it is old buddies bank the old german central bank to expand their balance sheet go to quantitative easing and they're going to say no we're not is about fact why don't we just take over your economy and don't want to just bring in the fourth reich you fricken losers and you know what they could do it they've got the firepower they've got the intelligence they've got the leadership something american the u.k. has no leadership whatsoever and then the other line of the russia it was aligned with china and around so hello twenty first century. so you got to go ok go make some friends stay tuned for the second i got an interview i did earlier with arian compound. it was a. very hard take i. want to get along here a lot have you ever had sex with her make her know. she. was. one of. the people. my friends there are now friends so said coco chanel jim has all been making a global wants are visible they can all make policy these days are collapsing i'm proud of

every single central bank of the world been co-opted by the federal reserve bank bank of japan the bank of england the other major ones they now want the european central bank which let's face it is the old bundles bank the old german central bank to expand their balance sheet go to quantitative easing and they're going to say no we're not it's about a fact why don't we just take over your economy and don't want to just bring in the fourth reich you fricken losers and you know what they could do it they've got the firepower they've got the intelligence they've got the leadership something american the u.k. has no leadership whatsoever and then the other along with russia it would align with china and around so hello twenty first century. so you got up ok go make some friends stay to have the psych about that interview i did earlier with arian cop out. this is what we do we kill people and break things we can see something is simple as people playing a soccer game you can see individual players and you can see the ball. you can almost see is facial expression you can see is a mouth open and crying out. maybe cursed. or maybe he asked. for forgiv

nothing right every single central bank of the world's been co-opted by the federal reserve bank bank of japan the bank of england the other major ones they now want the european central bank which let's face it is the old blunders bank the old german central bank to expand their balance sheet go to quantitative easing and they're going to say no we're not is about fact why don't we just take over your economy and don't want to just bring in the fourth reich you fricken losers and you know what they could do it they've got the firepower they've got the intelligence they've got the leadership something american the u.k. has no leadership whatsoever and they're not a lot of the russia it was aligned with china and iran so hello twenty first century. so you got to go ok go make some friends stay there for the psych about got an interview i did earlier with arian compound. i marinate join me on. impartial and financial reporting commentary interview and much much. only on the bus and on the. right to see. first street view and i think you're. on a reporter's twitter. instagram. to be in the limo. i think. we're going to go did you know the price is the only indust

central bank, what is good for greece is not necessarily good for germany. we get more insight into the thinking. morgan stanley says it will provide insight. barkley says this is about bringing the europeanentral bank up into a parallel level with its cohorts like the fed in terms of disclosure. have a look at the euro-dollar. it is fascinating. yesterday the euro moved on the back of the payroll numbers. two occasions during the news conference referred to the exchange rate as important and a problem. manus, how much more to we know about the funding for banks? devilk, it's still the in the details. the banks in europe have the facility up to one trillion euro s, if it decides to ask for those funds. it will happen later in the year. for those banks that are lending, this is an opportunity for them to know their portfolios or maintain him. we were at a conference last night in berlin. that was his message. particular, the structure is even better cash the program is attractive for dynamic lending performance. think much more important point is this -- essentially what these targeted ltro's, if you lend more, you can hold onto the funds. it is to those banks who are reducing balance shee

means the dollar's yellen fed is removing could be compensated for by cheap euro's from the european central bank the result may be enough cash sloshing around to underpin this year's run up and risk asset yeah it tells you i told you all about this six months ago remember ben bernanke in the janet yellen they started something called tapering and i said that's nonsense because of the global basis there is no taper because the european central bank would really pick up the slack and then add even more to the global supply of fake money during this quantitative easing period that's exactly what this story is telling us tapering is a lie there is no tapering because one big global slush and the e.c. be picked up and did much more than the ten or twenty billion dollars a month that bernanke you know yellen is taking away from the system there is no tapering because you can't take a ponzi scheme so this is going to continue until you have comes a a bond collapse or be a war well also you know the fact is that you have these you know the potato wedge in this case is the cheap money and then they're ju

investors reacting to a policy-setting meeting at the european central bank in frankfurt. atwill take a closer look that story. the ecb will hold its policy meetings every six weeks instead of every month as is currently the case. speaking earlier, the ecb president said meetings have been to frequent. he claimed it may have based oned to markets the ecb rather than economic fundamentals. the bank stood by the measures it outlined last month to boost the euro zone economy and stave off deflation that included lending to small and medium businesses. mario draghi said the ecb will keep interest rates low for some time still, but he also said the ecb stands ready to do more if necessary. >> the council is unanimous in its commitment to also be using unconventional instruments to meet its mandate. should it become necessary to tother address this prolonged time of low inflation. havewmakers in germany voted for it nationwide minimum wage. most -- the vote in parliament followed a heated debate. companies have warned this could lead to job cuts. even chancellor angela merkel ha

if focus today will be the european central bank policy meeting and what president mario draghi will have to say afterwards. in other markets in the asia-pacific region. the kospi is trading lower by .25%. in shanghai the key index is trading higher by a touch. >>> the people at an arm of toshiba have found fewer opportunities at home so they are look to europe to sell some of their nuclear technology. they are expected to win a $5 billion deal to build a plant in bulgaria. officials with toshiba's westinghouse subsidiary are expected to sign the contract to build the plant. it will generate enough electricity to power thousands of homes. the company is considering taking a stake in the firm that will operate the plant. all nuclear plants in japan are currently offline. managers of electronic forms have been look oversees. those at toshiba and hitachi have acquired power companies that plan to build power plants in britain. >>> japanese workers turn out products known around the world. but much of what they make is imported from abroad. steel from australia for . >>> geepg. i'm tavis

excessively cautious approach by the european central bank which mirrors the bank of japan in the one nine hundred ninety s. . and an inadequate. approach to fixing the banking system and allowing you know bad banks and bad companies to go to the wall which which the japanese also didn't allow to happen in the first ten fifteen years of their downturn either so i think in europe that's where the parallels with japan are plus it's they're less clear i think in the united states in the united kingdom although were we to make big policy errors to course that could happen as well. that was a columnist and author george magnus time now for today's big deal. big deal time with edward harris and it's tax thursday my favorite day of the week and while saturday we do have some tech stuff that's a little bit later on we're telling you about all the latest tech stories from the past week not just one but a bunch so first the department of justice is claim that microsoft must hand over e-mails stored in dublin ireland however microsoft has balked at this request so what's going on here why does m

because the fed is there to provide dollar liquidity when it's required the willingness of the european central bank to provide euro liquidity isn't open question in some sense and the ability of the people's bank of china what with chinese capital controls renders its ability to do so an open question as well. that was dr barry eichengreen professor of economics at u.c. berkeley time now for today's big deal. big deal time with that word harris and it's good to see you remotely. good now audience out there in today's big deal edward harris and i are discussing the annual bric summit and what this summit might mean for emerging markets so before we begin the brics nations are can you guess a drum roll i know you know brazil russia india china can you get sauce one she has this one south africa yeah ok so there's inverts and their group together due to their size and the strength of their economies and this summit is a multilateral forum for these economies and coincidentally enough it's being held just days after the world cup wraps so edward we've been talking about currencies a lot on the show tod

getting to fight ahead of itself and this is true it around the world the bank of japan the european central bank and even emerging markets central banks are being asked to do too much and monetary policy because you have more financial integration on the world has spillover effects which is unavoidable so i think that's the key problem we need to fix in every country you need a better mix of policies especially structural reforms and we also need to farms to the global financial system barefoot instance emerging markets don't feel they have no alternative but to self insure that is accumulate currency reserves to protect themselves from all this capital flow volatility now as how do you think the present system compares in terms of robustness to other monetary systems error in monetary systems and pass no many people have argued that perhaps we should move back to the gold standard i don't think that's going to happen because as we learned from the previous crises if you don't have the ability to provide a lot of liquidity in a time of crisis which is what a central bank like the fed can do it v

change in the european central bank. is it a historic moment or is the ecb catching up with its peers? covered the conference yesterday. he told us what to make of the move. >> i go with historic. it is about transparency, shaking up the methodology of communication. the art of communication. how often we hear from them. i'm going to go to every six weeks, mark. that is because mario draghi wants to break the markets are racing towards -- >> markets move ahead of every meeting. >> break that expectation. i setally thought that -- up and went, interesting. he wants to break the psychology of market. is that what carney is doing with him i am raising, i am not raising. he is shaking it up. ecb -- werd that the will have dry runs, whether it consensus minutes. a very important in terms of understanding. do the impact of minutes have on markets? in federal reserve speak, two basis points. let's see with the dry runs are. this is about progress. barclays ran a survey and the ecb came out below the fed at 5.7 out of 10. how th

they have never dealt with that herod fundamentally, it points to the fact that the european central banksements in june, the key point of that announcement was using the banks to funnel credit into the european economy to create some growth and inflation. it is pointing to the fact that the banks themselves are broken. they will not transmit this monetary impetus. the europeans are not terribly decisive in dealing with these problems. that is what a lot of people are seeing is the case. take a look at the fundamentals, the fundamentals are still pretty solid. it doesn't really account for what we saw as a broader selloff. what could explain that is the insecurity people still feel about europe and the crisis that may still be bubbling under the surface. sayhe first thing i would is that this bank has god on its santo isuse espirito their name. 2012 hasy since about relied on three things. the first is the famous european stability and growth -- which is cutting debt and increasing growth. they haven't done that. because of the european elections, particularly material renzi and francois h

finally broke with the european union and the european central bank and said we need to use fiscal policyto revive economies keynesian style the b.o.'s is saying exactly the opposite tighten fiscal policy squeeze out enough money to pay the creditors and that's exactly the opposite of all of the doctrine that the us was formed to to do to lighten the. germans reparations that in nineteen twenty nine so michael you're actually agreeing with edwards that's kind of what insane now yeah that's right edwards is appointed been pointing to the to the role of debt all along now i was on because as i understand it central banks want real estate prices to remain high so creditors can all collect on their interest payments instead of having to write down unpayable debt so isn't that a central piece of why we're using monetary policy here. yes that's exactly correct but the banks aren't lending more to their mortgage credit they're using it to us speculate they're using it to when third world countries are due to foreign currency arbitrage and can buy bonds so high yielding a company countries and so

to do the most possible transactions in other currencies neuer who is also a member of the european central bank's governing council said yesterday on b.f.m. television trade between china and europe do it in euro's do it in remember stop doing it in dollars this is an affair that will leave marks get out that's right the countries around the world are getting out of the u.s. dollar and we're saying we're more well the petro ruble is here you know you got the big russia and china gas deal which is going to be done in something other than dollars now that's my understanding and you have an offramp saying that french companies like big totality big energy companies they don't need to trade in dollars do deals in dollars people won out of the dollars of the extraordinary privilege or the extraordinary program privilege that charles de gaulle mentioned exorbitant for you know the exorbitant price privilege that charles de gaulle mentioned that the u.s. gets to write checks with their mouth that their bank account never has to cash the rest of world is saying we don't want this extraordinary extra bit.

means the dollars yellen fed is removing could be compensated for by cheap euros from the european central bank the result may be enough cash sloshing.

as i said before the break, it was all about the european central banks. ails on this years asset quality reviews and the stress tanks that eurozone banks will undergo. the ecb vice president told bloomberg even though blenders have been raising capital, some banks will fail. jonathan ferro got the chance to go and speak with him yesterday. what did you make of this message? banks have raised capital. he was calm about the whole thing. >> he was. ecb that soin the much work is going into this. a terrific amount of work. they have been raising capital. he told me they have been strengthening balance sheet by 200 billion euros. what it means, because they are frontloading and raising capital and deleveraging, a lot of these guys will probably pass these tests. these tests need to be rigorous and credible. mario draghi indicated last year that for them to be credible, somebody would have to fail. put that question to him, is that the case? this is his response. >> you cannot measure the strictness of a test by necessarily the results. you have to assess the me

it seems to involve tightening policy sooner. >> the european central bank has already extended what ey can and should do. they are still talking about asset purchases. do you think that is the way europe should be moving, to move the risk from the bank's balance sheet to the capital market? >> about a year ago, there was a discussion about using the european investment bank balance me's. to lend to ske' it would either by loans from the banks or it would loan directly itself. nothing has really happened there. yesterday, draghi was talking about the abs market being around 1.5 trillion euros. that is bigger than most other estimates. they are getting on with the bank of england to kickstart that market. if you tell banks you can fund at 25 basis points and we will buy it back from you, then maybe you might be telling banks there is free money to be had. >> finally, your growth forecast for the u.s. we could grow at 5% for the second half. what is your outlook for europe? >> europe seems to be limited to around 1%. euro zone growth will accelerate in the second quarter. germany is goi

the european central bank's data praise has been compromised. market sensitive information, but what has happened is people that registered at the bank have their e-mails taken from them. they were not encrypted. there is a data breach. it is not serious to market participants. it might be serious to journalists like us who registered for the event. i e-mail is fairly public, can live with it. it is an investment for the ecb, which prides itself on security. they've contacted the german authorities and are working with police. how they found out, someone tried to sell them back this data that had been stolen and that is how they find out that they had a compromised system on their hands. >> fascinating story. this, theydetails on have our e-mail addresses. we will find out more about this story. hans nichols joining us from berlin. u.s. regulators have lifted the ban on flights to israel's biggest airport, ben-gurion. some carriers say they could still cancel flights over safety concerns over the next few days. elliott gotkine is live in tel avi

and europe are simply going to make the deflationary forces more powerful and the job of the european central bank even more difficult. that was dr younis vera fokus professor of economics at the university of texas texas austin time now for today's big deal . big deal time and time for. me here now today and i are discussing europe the i.m.f. and loans now first up is ireland that's first on our agenda and they're currently considering how to repay their debt to both the i.m.f. as well as the european union so at can you tell me about this what's going on what's up with our waterloo in the poster child for the european union terms of countries that have gone through austerity and gotten out on the other their economies growing this ng to be doing well compared to some of the others even though they have you know double digit unemployment and they still are having problems their house house prices are forty percent below their peak but they want to show that ireland's done well so the irish are looking to repay some of their loan so they can reduce the interest payments and so the question is can

the european central bank is applying this. what they are essentially saying is capitals extremely attractive. the formula is quite complicated, but if you follow the format, all of that is to boost the growth potential of the euro area. >> we got a little bit of news from the fed today about the liquidity. we heard some indications from danielle and and president dudley that they might not change their investment policy as early as people expected. there were some four warnings of this, but today, we heard that the fed was going to wait until the point of raising rates before would stop reinvesting into securities. that means more liquidity for the market. as i think that is a very interesting point, but it also sets us up for some future risks . 2015 could be very interesting. >> for whom? but alsolders, potentially for stockholders. not only do we get most likely the first rate increase. prior to this point, we were not talking about reducing the -- reinvestment. once the reinvestment stops, it could be a pretty significant