James Rickards sees 'Currency Wars' destroying dollar

To most Americans, the term "quantitative easing" is arcane economic jargon, introduced following the global financial crisis and, like most U.S. policies intended to spur recovery, yet to make much progress in reducing unemployment.

Provincial borrowers defer loan payments

BEIJING - China's biggest provincial borrowers are deferring payment on their loans just two months after the country's regulator said some local government companies would be allowed to do so.

China, Japan to Back Direct Trade of Currencies

Japan and China will promote direct trading of the yen and yuan without using dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government said.

Euro slides after Italian bond auction falls short of target

The euro fell and stock markets remained cautious after Italian borrowing costs slipped from recent record highs in a debt sale but investors still demanded a near "unsustainable" interest rate to hold the ailing eurozone nation's 10-year bonds.

Euro crisis blocks the path to full economic recovery

The year ahead looks gloomy, but quantative easing in Europe should prevent a full-blown depression.

Bond sale puts Italy to the test

Italy faces a crucial test on Thursday as the technocrat government of Mario Monti launches its first big auction of long-term bonds since a disastrous upset a month ago.

Hedge funds hammered in one of worst years on record

Hedge funds have suffered their second worst year on record as volatile markets, plunging commodities and political uncertainty torpedoed the investment plans of even the $2 trillion (£1.28 trillion) sector's biggest stars.

Treasury plans for euro failure

The Government is considering plans to restrict the flow of money in and out of Britain to protect the economy in the event of a full-blown euro break-up.

Nervous banks place record €411bn with ECB as eurozone woes continue

Fearful banks parked a record €411bn (£344bn) with the European Central Bank (ECB) last night in a further sign that Europe's financial institutions are becoming increasingly wary of lending to each other.

Precious Metals 2012: Bullish and Bearish Arguments

After the sharp drop in precious metals recently, many people (including me) wonder what will happen next with Gold & Silver (& other PM's).

A trade for 2012: sell Europe, buy the US

It's been some year. Stock markets across the globe have performed woefully. Developed markets did better than emerging ones, but the fact is your money would have been better off in a savings account than in the average index tracker this year. Gold did well – it peaked mid-year, but in terms of annual performance, it still thrashed just about any other asset class around. And the defensive stocks we've been tipping all year have done well. Neil Woodford's Edinburgh Investment Trust (LSE: EDIN) - which invests mainly in those sorts of stocks – is up around 7% on the year, including dividends, which beats both inflation and the wider market. So what lies ahead for 2012? And what should you be buying now?

China's epic hangover begins

China's credit bubble has finally popped. The property market is swinging wildly from boom to bust, the cautionary exhibit of a BRIC's dream that is at last coming down to earth with a thud.

ECB's £489bn will 'buy valuable time' but is no eurozone debt bazooka

The European Central Bank's (ECB) unprecedented provision of a €489bn (£407.5bn) in cheap loans will "buy valuable time" for eurozone banks but has not improved their credit outlook, a director of Standard & Poor's (S&P) has warned.

Eurozone zombies follow Mario Draghi's cheap money

Mario Draghi donned his plague suit on Wednesday and urged European banks to "Bring out your dead". But rather than financial corpses it was €489bn (£408bn) of zombie debt from zombie banks that emerged blinking into the daylight.

Euroland euphoria on Mario Draghi bank rescue

Southern Europe's battered debt markets are basking in a glorious pre-Christmas rally as hedge funds and investors celebrate a blast of cheap liquidity from the European Central Bank.

Spain grits teeth yet again as austerity deepens

Spain's new premier Mariano Rajoy has launched a fresh blast of fiscal austerity at his inauguration, describing the national outlook as "desolate" and his task like that of a father feeding four hungry mouths with bread for two.

Workers of Europe unite, you've only euro chains to lose

Europe's Left has suffered a calamitous six months. Socialist governments have met historic defeats in Portugal and Spain. Greece’s Pasok party was toppled by an EU technocrat Putsch. Ireland’s soft-Left Fianna Foil lost every seat in Dublin.

Talk of 'nuclear default' sums up Left's anger at EU dictates

Tempers are fraying in austerity-racked Portugal. A top socialist politician was taped at a party dinner calling for diplomatic warfare against the EU's northern powers and issuing threats of debt default.

Bank of America sees deeper eurozone crisis before ECB rescue

The European Central Bank will be forced to print money on a large scale but only after deep recession and months of drift have pushed the eurozone to the brink of disaster, Bank of America has warned.

Confusion over Britain's £30bn share of IMF rescue for Europe

Concerns are mounting that Britain may have to contribute a further £30bn to eurozone rescue loans through the International Monetary Fund, matching the sorts of burdens shouldered by Germany, France and other EMU states.

Debt crisis: live

Markets fall as faith in EU plans for resolving eurozone debt crisis fades, and David Cameron prepares to tell the Commons why he rejected EU treaty change amid deeper Coalition splits.

EU treaty: Britain is being 'left behind' ... a rickety cart drawn by pantomime horse Merkozy

The EU treaty agreement shows eurozone politicians continue to be obsessed with the symptoms, ignoring the the underlying macro problems.

Q3 2011 "Flow of Funds"

It is only appropriate that the release of the Fed’s latest Credit data directs our analytical focus back to the U.S. Credit system and economy. For the quarter, total system Credit market debt increased to a record $53.825 TN. While some analysts continue to refer to “deleveraging,” it is worth noting that total system debt remains at a staggering 355% of Gross Domestic Product (GDP). This is not meaningfully below the peak ratio of 375% in Q2 2009 (ended the nineties at 264%).

Gold Price Outlook 2012: Miners Will Shine as Prices Soar

Despite a pullback from its all-time high of about $1,920 an ounce set in September, gold is still trading in the $1,750 range. In fact, the glittering metal has gained 22% in the past 12 months. What's more is that I believe gold prices will eclipse $2,200 an ounce next year, and shoot beyond even $5,000 an ounce after that. So there's obviously still time to get in on this once-in-a-lifetime bull-run, if you haven't already. Of course, every investor should at least have shares of a gold-based exchange-traded fund, but if you really want to profit from the price surge, you ought to look at gold mining companies. Let me explain.

RBS investigation: Chapter 5: the new era

The fifth part of our in-depth investigation into the collapse of RBS detailing how RBS's new management's approach to running the bank following its taxpayer-funded rescue.

RBS investigation: Chapter 4: the bail-out

The fourth part of our in-depth investigation into the collapse of RBS, detailing the tumultuous days that saw the bank teeter on the brink of collapse.

RBS investigation: Chapter 3 - run up to the collapse

The third part of our in-depth investigation into the collapse of RBS showing how the bank pushed on with the risky takeover of ABN Amro even as global financial markets went into meltdown.

RBS investigation: Chapter 2 - the ABN Amro takeover

The second part of our in-depth investigation into the collapse of RBS, showing how the bank became involved in the deal that would eventually be a major cause of its demise

RBS investigation: Chapter 1 - NatWest and Beyond

The first of a five part in-depth investigation by the Telegraph in March into the collapse of Royal Bank of Scotland. For the first time we publish the full version of our three-month investigation.

EU treaty: don’t blame UK for eurozone’s failure to put its house in order

For better or worse, Britain’s relationship with Europe changed fundamentally early on Friday morning.

Globalisation has turned on its Western creators

From the Occupy Wall Street and Tea Party movements of the US to the rise of populist politics in Europe, the globalisation backlash is everywhere. 

EU treaty: Business leaders play down veto fears

Britain's business leaders are far more worried about the eurozone's debt crisis than any fallout from the UK's diplomatic spat with Brussels, playing down fears that David Cameron's unprecedented treaty veto could trigger job losses or commercial retaliation.

Bundesbank rejects Europe's IMF funding ruse

Germany's Bundesbank has raised serious objections to EU summit plans to shore up Italy and Spain by channelling up to €200bn (£170bn) from central bank reserves through the International Monetary Fund (IMF).

Market rout as ECB dashes bond hopes

The European Central Bank has dashed hopes for a blitz of bond purchases to stem the debt crisis in southern Europe, setting off a sharp fall on European stock markets and a flight from risk across the world.

Mario Draghi to drag out ECB rescue

Investors have febrile expectations of Mario Draghi. They are strangely hopeful that the Italian chief of the European Central Bank will soon unleash a blitz of bond purchases to halt the death spiral in southern Europe.

S&P's fusillade is well-timed to warn Euroland

Better late than never. Standard & Poor's has been slow to recognise the default risk for states that give up their central bank in a currency union. Bond vigilantes have forced action.

Bank of France debts jump tenfold on capital flight

The Bank of France faces surging debts to Germany's Bundesbank and fellow central banks in the EMU system as foreign investors pull large sums out of French accounts.

Heroic Ireland can do no more, it is up to Europe now

Europe has staked its crisis credibility on Ireland. If any of EMU’s beleaguered debtor states can vindicate the EU strategy of shock therapy and wage deflation, it is surely the Celtic Tiger.

Fiskalunion is worst of all worlds for Europe

Be careful of the German term 'Fiskalunion', the next phase of Europe’s misadventure. What Chancellor Angela Merkel means is increased powers to police the budgets of EMU sinner states.

14th Consecutive Week Of Stock Outflows: Retail Refuses To Go Back Into Stocks No Matter What Market Does

So much for engineered stock market "rallies" and global "bailouts" - per the latest ICI update, we can now confirm that no matter how or what the market does, retail investors have firmly decided that the ridiculous market volatility is simply too much for most, and have withdrawn another $3.7 billion from domestic equity funds, and have now taken out money for 14 straight weeks ($44 billion) since the US debt downgrade (but, but, the S&P barely lower), or 31 weeks ($130 billion) if one ignores the statistically irrelevant blip of a $715mm inflow on August 17. Perhaps instead of trying to fabricate a makeshift price for the SPX which nobody believes any more, the Fed should focus on moderating the insane volatility which is the primary reason preventing any normal investors from putting cash into stocks. And yes, $6.2 billion went into bonds, despite the record low yields. Said otherwise, retail investors have withdrawn $214 billion from domestic equity mutual funds since the beginning of 2010. Put a fork in stocks: America's infatuation with the stock market is officially over.

Why the Fed's Latest Rescue Effort is Doomed

World markets got a nice tailwind yesterday (Wednesday) on news that the U.S. Federal Reserve is stepping into the fray along with other central banks to boost liquidity and support the global economy. Of course it's nice to see stocks get a hefty boost, but to be honest I'd rather see them rising on real news. Not that this isn't a good development in terms of stock values - but come on, guys. When things are so bad that the Fed has to step into global markets and bail out the other bankers in the world who can't wipe their own noses, we have serious problems. Think about it. The Fed is going to collaborate with the European Central Bank (ECB), the Bank of England (BOE), the Bank of Japan, the Swiss National Bank and the Bank of Canada (BOC) to lower interest rates on dollar liquidity swaps to make it cheaper for banks around the world to trade in dollars as a means of providing liquidity in their markets. Put another way, now our government is directly involved in saving somebody else's bacon at a time when, arguably, we don't have our own house in order. The Fed is cutting the amount that it charges for international access to dollars effectively in half from 100 basis points to 50 basis points over a basic rate. The central bank says the move is designed to "ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credits to households and businesses and so help foster economic activity." Who writes this stuff? Businesses are flush with more cash than they've had in years. The banks are, too. But the problem is still putting that cash in motion -- just as it has been since this crisis began.

The best way to protect yourself as the Fed wades into Europe

Is there no problem that can't be solved with the application of some easy money? Markets around the world rocketed yesterday as the world's central banks got fed up waiting for Europe to do something. The Federal Reserve and the rest of them ganged up for an assault on the forces of bearishness, spraying more cheap money into the system in a concerted effort. It worked. The Dow Jones index is back in positive territory for the year. The German Dax gained 5%. And the FTSE 100 was up 3%. So what exactly happened yesterday? And is this a turning point in the eurozone crisis, or just another false dawn?

It's Time to Overhaul the Fed

The average American has no idea how protected the big banks in this country really are. For the most part we don't even blink when we are lied to publicly by their CEOs. Maybe that's because the biggest bank in the world, the U.S. Federal Reserve, which happens to be a creation of and 100% beholden to the banks that it is a master shill for, also lies to us and covers up Wall Street's misdeeds. How else can you explain the Federal Reserve's practice of secretly feeding billions of dollars to big banks, and then looking the other way while those same banks lie to the public about their strength so they can raise desperately needed equity and borrow in the debt markets? Why else would the Fed prop up Bear Stearns long enough for JPMorgan Chase & Co. (NYSE: JPM) to buy it, and then prop up JPMorgan? Why else would the Fed prop up Merrill Lynch for the benefit of Bank of America Corp. (NYSE: BAC), and then prop up Bank of America as Merrill dragged it down. And why else would the Fed prop up Wachovia just so it could be taken over by Wells Fargo & Co. (NYSE: WFC) - yet another bank that would come to need even more help?

Debt Crisis: US rescue act is a sign of the mess we’re in

For the eurozone, it was another humiliating turn of events. Faced with Europe’s abject failure to sort out its own mess, the US Federal Reserve has been forced to come riding to the rescue instead.

Central bank deal should remind eurozone leaders of looming disaster

So much for moral hazard. Ben Bernanke, chairman of the US Federal Reserve, has decided he can't wait any longer for dithering eurozone politicians to sort out their problems.

Fed saves Europe's banks as ECB stands pat

Stripped to essentials, America is once again having to rescue Europe from itself.

Europe's shrinking money supply flashes slump warning

All key measures of the money supply in the eurozone contracted in October with drastic falls across parts of southern Europe, raising the risk of severe recession over coming months.

Should the Fed save Europe from disaster?

The dam is breaking in Europe. Interbank lending has seized up. Much of the financial system is paralysed, setting off a credit crunch just as Euroland slides back into slump.