Collusion_How Central Bankers Rigged the World Read online

  247. “India Mulls Enhanced Naval Cooperation with Japan,” American Interest, December 20, 2016, www.the-american-interest.com/2016/12/20/india-mulls-enhanced-naval-cooperation-with-japan/.

  248. Kiyoshi Takenaka and Katya Golubkova, “Abe, Putin Agree to Revive Japan-Russia Security Talks, Discuss Syria,” Reuters, December 14, 2016, www.reuters.com/article/us-japan-russia-idUSKBN143332.

  249. Also called the FSA; the government agency and financial regulator responsible for overseeing banking, securities and exchange, and insurance sectors to ensure the stability of the financial system of Japan.

  250. Toru Takahashi, “BRICS Bank Can Contribute to Global Growth: BOJ’s Kuroda,” Nikkei Asian Review, July 25, 2014, https://asia.nikkei.com/Politics-Economy/Economy/BRICS-bank-can-contribute-to-global-growth-BOJ-s-Kuroda.

  251. Okazaki had been working unofficially with the People’s Bank of China since the State Council determined it would function as a central bank in 1983 (“About PBC,” People’s Bank of China, www.pbc.gov.cn/english/130712/index.html). Officially, she worked as a senior economist in the International Department and seconded to the People’s Bank of China Shanghai Head Office (from October 2011 to August 2014). She effectively worked for two central banks at the same time, not a common situation, even less so between two politically competing countries like Japan and China. Although the two governments were officially at a distance, in 2006 she moved to Shanghai as part of an exchange program with the PBOC. Her stay was extended through 2013 (Kumiko Okazaki profile page, Canon Institute for Global Studies, www.canon-igs.org/en/fellows/kumiko_okazaki.html).

  252. Cindy Li, “Banking on China through Currency Swap Agreements,” Federal Reserve bank of San Francisco, October 23, 2015, www.frbsf.org/banking/asia-program/pacific-exchange-blog/banking-on-china-renminbi-currency-swap-agreements/.

  253. “Cooperation with Other Central Banks,” Bank of Japan, accessed September 15, 2017, www.boj.or.jp/en/intl_finance/cooperate/index.htm/.

  254. The central bank of the Republic of Korea and issuer of South Korean won.

  255. Bank of Japan, Announcements, https://www.boj.or.jp/en/announcements/release_2008/un081. The announcement of the formation of the tripartite group was removed from the server.

  256. “Cooperation with Other Central Banks,” Bank of Japan, https://www.boj.or.jp/en/intl_finance/cooperate/index.htm/#p.

  257. Alvaro Vargas Llosa, “How China Has Created Its Own TPP,” National Interest, November 8, 2016, http://nationalinterest.org/feature/how-china-has-created-its-own-tpp-18337.

  258. “Regional Comprehensive Economic Partnership,” Australian Government, Department of Foreign Affairs and Trade, accessed September 15, 2017, http://dfat.gov.au/trade/agreements/rcep/Pages/regional-comprehensive-economic-partnership.aspx.

  259. Emiko Jozuka, “TPP vs RCEP? Trade Deals Explained,” CNN, January 26, 2017, http://edition.cnn.com/2017/01/24/asia/tpp-rcep-nafta-explained/.

  260. Reuters, “Japan PM Says TPP Trade Pact Meaningless Without US,” Yahoo!, November 21, 2016, www.yahoo.com/news/tpp-trade-pact-meaningless-without-u-japan-pm-225702119.html.

  261. Jeffrey A. Bader and David Dollar, “Why the TPP Is the Linchpin of the Asia Rebalance,” Brookings Institution, July 28, 2015, www.brookings.edu/blog/order-from-chaos/2015/07/28/why-the-tpp-is-the-linchpin-of-the-asia-rebalance/.

  262. Leika Kihara, “BOJ’s Kuroda Welcomes Expansion of China-Led Infrastructure Bank,” Reuters, May 1, 2017, www.reuters.com/article/us-japan-economy-boj-adb-idUSKBN17Y09I?il=0.

  263. Toru Fujioka, “Kuroda Says Reaching Inflation Target a Little Easier with Trump,” Bloomberg, January 18, 2017, www.bloomberg.com/news/articles/2017-01-18/kuroda-says-reaching-inflation-target-a-little-easier-with-trump.

  264. Kihara, “BOJ’s Kuroda Welcomes Expansion of China-Led Infrastructure Bank.”

  CHAPTER 5: EUROPE PART I: THE TRICHET FILES

  1. John Lichfield, “Jean-Claude Trichet: The Guardian of the Euro,” Independent (London), August 5, 2011, www.independent.co.uk/news/people/profiles/jean-claude-trichet-the-guardian-of-the-euro-2332716.html.

  2. Aaron Eglitis, “When It Comes to Central-Banker Salaries, It Pays to Be Belgian,” Bloomberg, November 22, 2016, www.bloomberg.com/news/articles/2016-11-22/when-it-comes-to-central-banker-salaries-it-pays-to-be-belgian.

  3. “Looking Back: The Financial Crisis Began 10 Years Ago This Week,” Money & Banking (blog), August 7, 2017, www.moneyandbanking.com/commentary/2017/8/6/looking-back-the-financial-crisis-began-10-years-ago-this-week.

  4. “Lunch with the FT: Jean-Claude Trichet,” Financial Times, July 6, 2012.

  5. “Trichet Navigates Choppy Waters,” Financial Times, December 23, 2007.

  6. David Gow, “Trichet to Trumpet ‘Solidity’ of the Euro as He Bows Out of the ECB,” Guardian (Manchester), October 5, 2011, www.theguardian.com/business/2011/oct/05/trichet-defends-his-time-at-ecb-as-he-bows-out.

  7. “Looking Back: The Financial Crisis Began 10 Years Ago This Week,” Money & Banking (blog), August 7, 2017, www.moneyandbanking.com/commentary/2017/8/6/looking-back-the-financial-crisis-began-10-years-ago-this-week.

  8. “The Rise and Fall of Northern Rock,” Telegraph (London), August 14, 2014, http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11032772/The-rise-and-fall-of-Northern-Rock.html.

  9. Ibid.

  10. “Euro Reaches New High Against Dollar,” CBS News, February 27, 2008, www.cbsnews.com/news/euro-reaches-new-high-against-dollar/.

  11. Lydia Saad, “Americans See China Crowding Out US as Economic Leader,” Gallup, February 21, 2008, www.gallup.com/poll/104479/americans-see-china-crowding-us-economic-leader.aspx.

  12. “Foreign Exchange Rates—H.10,” Board of Governors of the Federal Reserve System, updated September 11, 2017, www.federalreserve.gov/releases/h10/summary/indexn96_b.htm.

  13. “La Fed, el BCE y otros bancos centrales vuelven a inyectar liquidez contra la crisis financier,” El Mundo, March 11, 2008, www.elmundo.es/mundodinero/2008/03/11/economia/1205240099.html.

  14. “FOMC Statement: Federal Reserve and Other Central Banks Announce Specific Measures Designed to Address Liquidity Pressures in Funding Markets” (press release), Board of Governors of the Federal Reserve System, March 11, 2008, www.federalreserve.gov/newsevents/press/monetary/20080311a.htm.

  15. “FT: Person of the Year,” Financial Times, https://ig.ft.com/sites/person-of-the-year/; “Trichet Navigates Choppy Waters,” Financial Times, December 23, 2007.

  16. Jean-Claude Trichet, “Interview with Die Presse, Der Kurier, Der Standard and Salzburger Nachrichten on April 28, 2008,” European Central Bank, April 30, 2008, www.ecb.europa.eu/press/inter/date/2008/html/sp080430.en.html.

  17. Ibid.

  18. Jean-Claude Trichet and Lucas Papademos, “Introductory Statement with Q&A,” European Central Bank, July 3, 2008, www.ecb.europa.eu/press/pressconf/2008/html/is080703.en.html.

  19. Linda S. Goldberg, Craig Kennedy, and Jason Miu, “Central Bank Dollar Swap Lines and Overseas Dollar Funding Costs,” FRBNY Economic Policy Review, May 2011, 11, www.newyorkfed.org/medialibrary/media/research/epr/11v17n1/1105gold.pdf.

  20. “Secretary Paulson Economic Intervention Vote Reaction,” C-SPAN, September 29, 2008, www.c-span.org/video/?281498-1/secretary-paulson-economic-intervention-vote-reaction.

  21. Jean-Claude Trichet and Lucas Papademos, “Introductory Statement with Q&A,” European Central Bank, October 2, 2008, www.ecb.europa.eu/press/pressconf/2008/html/is081002.en.html.

  22. Financial Stress and Deleveraging: Macrofinancial Implications and Policy, World Economic and Financial Surveys, Global Financial Stability Report (Washington, DC: International Monetary Fund, October 2008), www.imf.org/external/pubs/ft/gfsr/2008/02/pdf/text.pdf.

  23. Ralph Boulton and Tony Munroe, “European Banking Chief Urges US Bailout Approval,” Reuters, October 3, 2008, www.reuters.com/article/idINIndia-3578362 0081003.

  24. David M. Herszenhorn, “Congress Approves $700 Bill
ion Wall Street Bailout,” New York Times, October 3, 2008, www.nytimes.com/2008/10/03/business/worldbusiness/03iht-bailout.4.16679355.html.

  25. “FOMC Statement: Federal Reserve and Other Central Banks Announce Reductions in Policy Interest Rates” (press release), Board of Governors of the Federal Reserve System, October 8, 2008, www.federalreserve.gov/newsevents/press/monetary/20081008a.htm.

  26. Ibid.

  27. “Monetary Policy Decisions” (press release), European Central Bank, October 8, 2008, www.ecb.europa.eu/press/pr/date/2008/html/pr081008.en.html.

  28. “Monetary Policy Decisions” (press release), European Central Bank, November 6, 2008, www.ecb.europa.eu/press/pr/date/2008/html/pr081106.en.html.

  29. “The Euro Zone’s First Recession,” Economist, November 14, 2008, www.economist.com/node/12623045.

  30. Jean-Claude Trichet, “Undervalued Risk and Uncertainty: Some Thoughts on the Market Turmoil” (speech given at the Fifth ECB Central Banking Conference, Frankfurt am Main, November 13, 2008), www.ecb.europa.eu/press/key/date/2008/html/sp081113_1.en.html.

  31. Jean-Claude Trichet and Lucas Papademos, “Introductory Statement with Q&A,” European Central Bank, December 4, 2008, www.ecb.europa.eu/press/pressconf/2008/html/is081204.en.html.

  32. Ibid.

  33. Joseph Stiglitz, “The Problem with Europe Is the Euro,” Guardian (Manchester), August 10, 2016, www.theguardian.com/business/2016/aug/10/joseph-stiglitz-the-problem-with-europe-is-the-euro.

  34. Jean-Claude Trichet, “The Changing Role of Communication” (introductory remarks at a dinner with members of the Internationaler Club Frankfurter Wirtschaftsjournalisten, Frankfurt am Main, December 15, 2008), www.ecb.europa.eu/press/key/date/2008/html/sp081215_2.en.html.

  35. “Merkel Hints at Billions for New Stimulus Plan,” The Local, December 16, 2008, www.thelocal.de/20081216/16177.

  36. “Germany Seals 50 Billion Euro Stimulus Plan,” Spiegel Online, January 13, 2009, www.spiegel.de/international/germany/help-for-europe-s-biggest-economy-germany-seals-50-billion-euro-stimulus-plan-a-600977.html.

  37. Ben S. Bernanke, “The Crisis and the Policy Response” (speech at the Stamp Lecture, London School of Economics, London, England, January 13, 2009), www.federalreserve.gov/newsevents/speech/bernanke20090113a.htm.

  38. Ibid.

  39. Ambrose Evans-Pritchard, “European Central Bank Falls into Line and Embraces Quantitative Easing,” Telegraph (London), May 7, 2009, www.telegraph.co.uk/finance/financialcrisis/5292781/European-Central-Bank-falls-into-line-and-embraces-quantitative-easing.html.

  40. Robert J. Samuelson, “The Newsweek 50: Bernanke, Trichet, Shirakawa,” Newsweek, December 19, 2008, www.newsweek.com/newsweek-50-bernanke-trichet-shirakawa-83099.

  41. “Update 3—IMF Warns on Euro Zone Stability Risk, Cash Reserves,” Reuters, January 28, 2009, http://uk.reuters.com/article/imf-strausskahn-eurozone-idUKLS48269020090128.

  42. Ambrose Evans-Pritchard, “Trichet Is Bounced into Defence of the Euro,” Telegraph (London), January 30, 2009, www.telegraph.co.uk/finance/financetopics/davos/4394914/Trichet-is-bounced-into-defence-of-the-euro.html.

  43. “London Summit: Leaders’ Statement,” International Monetary Fund, April 2, 2009, www.imf.org/external/np/sec/pr/2009/pdf/g20_040209.pdf.

  44. Sam Jones, Jenny Percival, and Paul Lewis, “G20 Protests: Riot Police Clash with Demonstrators,” Guardian (Manchester), April 1, 2009, www.theguardian.com/world/2009/apr/01/g20-summit-protests.

  45. “Federal Reserve, Bank of England, European Central Bank, Bank of Japan, and Swiss National Bank Announce Swap Arrangements” (press release), Board of Governors of the Federal Reserve System, April 6, 2009, www.federalreserve.gov/newsevents/press/monetary/20090406a.htm.

  46. Jean-Claude Trichet and Lucas Papademos, “Introductory Statement with Q&A,” European Central Bank, May 7, 2009, www.ecb.europa.eu/press/pressconf/2009/html/is090507.en.html.

  47. The program is called the Covered Bond Purchase Programme (CBPP) and €60 billion of covered bonds were purchased from July 2009 to July 2010. They are European debt securities backed by mortgages or public sector loans.

  48. Trichet and Papademos, “Introductory Statement with Q&A,” European Central Bank, May 7, 2009.

  49. Joellen Perry, “Merkel vs. Central Banks: In Her Words,” Real Time Economics (blog), Wall Street Journal, June 3, 2009, https://blogs.wsj.com/economics/2009/06/03/merkel-vs-central-banks-in-her-words/.

  50. Joellen Perry, “Germany Blasts ‘Powers of the Fed,’” Wall Street Journal, June 3, 2009, www.wsj.com/articles/SB124398546796379239.

  51. “Monetary Policy Decisions” (press release), European Central Bank, July 2, 2009, www.ecb.europa.eu/press/pr/date/2009/html/pr090702.en.html.

  52. Jean-Claude Trichet and Lucas Papademos, “Introductory Statement with Q&A,” European Central Bank, August 6, 2009, www.ecb.europa.eu/press/pressconf/2009/html/is090806.en.html.

  53. “Is the World Losing Faith in the US Dollar?” Wharton School of the University of Pennsylvania, September 2, 2009, http://knowledge.wharton.upenn.edu/article/is-the-world-losing-faith-in-the-u-s-dollar/.

  54. Jean-Claude Trichet, Lucas Papademos, and Mario Draghi, “Introductory Statement with Q&A,” European Central Bank, October 8, 2009, www.ecb.europa.eu/press/pressconf/2009/html/is091008.en.html.

  55. Ibid.

  56. Ibid.

  57. Una McCaffrey, “ECB Holds 1% Rate as Rise Not Expected Until Late Summer,” Irish Times, October 9, 2009, www.irishtimes.com/business/ecb-holds-1-rate-as-rise-not-expected-until-late-summer-1.753708.

  58. Martin Wolf, “Lunch with the FT: Jean-Claude Trichet,” Financial Times, July 6, 2012, www.ft.com/content/d3508ac0-c687-11e1-943a-00144feabdc0.

  59. “Senate Vote Sends Strong Message to the Fed” (press release), Bernie Sanders website, January 28, 2010, https://www.sanders.senate.gov/newsroom/press-releases/release-senate-vote-sends-strong-message-to-the-fed.

  60. “Timeline: Greece’s Economic Crisis,” Reuters, February 3, 2010, www.reuters.com/article/us-greece-economy-events-idUSTRE6124EL20100203.

  61. “EU Casts Doubt on Greece Economic Figures,” BBC News, January 13, 2010, http://news.bbc.co.uk/2/hi/europe/8456216.stm.

  62. “IMF Survey: Europe and IMF Agree €110 Billion Financing Plan with Greece: IMF Survey Online,” International Monetary Fund, May 2, 2010, www.imf.org/external/pubs/ft/survey/so/2010/car050210a.htm.

  63. Ben Levisohn, “Dollar Soars against Euro As EU Dithers on Greece Aid,” Independent (London), March 29, 2010, http://www.independent.ie/business/world/dollar-soars-against-euro-as-eu-dithers-on-greece-aid-26644916.html.

  64. Richard Wachman and Nick Fletcher, “Standard & Poor’s Downgrade Greek Credit Rating to Junk Status,” Guardian (Manchester), April 27, 2010, www.theguardian.com/business/2010/apr/27/greece-credit-rating-downgraded.

  65. Edward Cody, “Greek Bailout Plan Approved by German Parliament,” Washington Post, May 7, 2010, www.washingtonpost.com/wp-dyn/content/article/2010/05/07/AR2010050701987.html.

  66. Dan Bilefsky and Landon Thomas Jr., “Greece Takes Its Bailout, but Doubts for the Region Persist,” New York Times, May 2, 2010, www.nytimes.com/2010/05/03/business/global/03drachma.html?pagewanted=all.

  67. “FOMC Statement: Federal Reserve, European Central Bank, Bank of Canada, Bank of England, and Swiss National Bank Announce Reestablishment of Temporary US Dollar Liquidity Swap Facilities” (press release), Board of Governors of the Federal Reserve System, May 9, 2010, www.federalreserve.gov/newsevents/press/monetary/20100509a.htm.

  68. “Financial Stability Set Back as Sovereign Risks Materialize,” Global Financial Stability Report Market Update, July 2010, http://www.imf.org/external/pubs/ft/fmu/eng/2010/02/pdf/0710.pdf.

  69. “Global Financial Stability Report: GFSR Market Update,” International Monetary Fund, July 7, 2010, Figure 3: Selected Euro Area Sovereign Bank Rollovers, Q3 2010–Q4 2012, www.imf.org/external/pubs/ft/fmu/eng/2010/02/#P15_3140.

  70. Anita Bro
oks, “Spain Faces Unrest as New Austerity Plan Is Announced,” Independent (London), May 12, 2010, www.independent.co.uk/news/world/europe/spain-faces-unrest-as-new-austerity-plan-is-announced-1972211.html.

  71. Fiona Gova, “General Strike in Spain to Protest against Austerity Measures,” Telegraph (London), September 29, 2010, www.telegraph.co.uk/travel/destinations/europe/spain/8032647/General-strike-in-Spain-to-protest-against-austerity-measures.html.

  72. “Interview with Jean-Claude Trichet, President of the ECB, and La Repubblica, conducted by Elena Polidori on Wednesday 16 June 2010,” European Central Bank, June 24, 2010, www.ecb.europa.eu/press/key/date/2010/html/sp100624.en.html.

  73. Ambrose Evans-Pritchard, “IMF Tells Europe to Inject More Stimulus,” Telegraph (London), July 8, 2010, www.telegraph.co.uk/finance/economics/7880333/IMF-tells-Europe-to-inject-more-stimulus.html; “Global Financial Stability Report: GFSR Market Update,” July 7, 2010.

  74. Jann Bettinga and Charles Penty, “Seven EU Banks Fail Tests with $4.5 Billion Shortfall,” Bloomberg, July 23, 2010, www.bloomberg.com/news/articles/2010-07-23/seven-of-91-eu-banks-fail-stress-test-face-4-5-billion-capital-shortfall.

  75. Ben Shore, “Euro Strengthens as Dollar Stalls,” BBC News, August 9, 2010, www.bbc.com/news/business-10920766.

  76. Stefan Gerlach, Defining and Measuring Systemic Risk (Brussels: European Parliament Committee on Economic and Monetary Affairs, 2009), www.europarl.europa.eu/document/activities/cont/200911/20091124ATT65154/20091124ATT65154EN.pdf.

  77. Mark Felsenthal and Pedro da Costa, “Bernanke Says Fed to Act If Needed,” Reuters, August 7, 2010, http://in.reuters.com/article/columns-us-usa-fed-bernanke-idINTRE67O0MF20100828.

  78. Adrian Blundell-Wignall and Patrick Slovik, “The EU Stress Test and Sovereign Debt Exposures” (OECD Working Papers on Finance, Insurance and Private Pensions, No. 4, OECD Financial Affairs Division, August 2010), www.oecd.org/finance/financial-markets/45820698.pdf.

  79. “FOMC Statement” (press release), Board of Governors of the Federal Reserve System, November 3, 2010, www.federalreserve.gov/newsevents/press/monetary/20101103a.htm.