Category: Quantitative Easing
The analysis published under this category are as follows.
Friday, June 07, 2013
How the Fed Has the U.S. Economy Hooked on Monetary Cocaine” / Economics / Quantitative Easing
By: InvestmentContrarian
George Leong writes: The debates continue on whether the Federal Reserve should or should not begin to take its foot off the money-printing pedal. We will likely find out on June 14, which is when the Fed meets.
I know those seeking income from bonds want higher yields because it’s hard to survive when you are making only about one percent from a five-year U.S. government bond.
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Thursday, June 06, 2013
Reckless Expansion of Money Supply Results in Monstrous, Malignant, Moribund Economy / Economics / Quantitative Easing
By: Richard_Daughty
It was at breakfast that I was explaining my new theory. It goes like this: Since behavior has now been shown to be a function of genetics, and therefore subject to evolutionary pressures, that explains how, when women get to be menopausal, women’s genes notice that it’s now obvious that their deadbeat husbands are not going to impregnate them anymore, and therefore wives ought to get rid of these losers and try, try again with some other guys to test her fertility.
Tuesday, June 04, 2013
Japan’s Easy Money Tsunami / Interest-Rates / Quantitative Easing
By: David_Howden
The Bank of Japan has embarked on one of the most inflationary policies ever undertaken. Pledging to inject $1.4 trillion dollars into the economy over the next two years, the policy is aimed at generating price inflation of 2% and further depreciating the Yen. The idea is to fight “deflation” and increase exports.
Tuesday, June 04, 2013
Fed Gearing Up to Scale Back on QE / Interest-Rates / Quantitative Easing
By: Bloomberg
Atlanta Federal Reserve Bank president Dennis Lockhart told Bloomberg TV's Michael McKee today that Fed officials are committed to stimulus even as divergent views on when to start paring back bond purchases create a "mixed message" to investors.
Lockhart said, "There certainly seems to be an acute fixation on the timing of any adjustment to the asset purchase program and I guess I would just encourage everyone to not lose sight of the bigger picture." He went on to say, "Any adjustment is not a major policy shift. The high level of accommodation will stay in place."
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Monday, June 03, 2013
Economies Addicted to Low Interest Rates / Interest-Rates / Quantitative Easing
By: Michael_Pento
It is amazing so many investors are oblivious to the fact that the developed world is completely addicted to artificially-produced low interest rates. Perhaps that is why there is still a debate over whether the ending of QE will adversely affect the economy, and if rising rates can occur within the context of a healthy economy.
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Thursday, May 30, 2013
Fed Money Printing Real Conundrum! / Interest-Rates / Quantitative Easing
By: Robert_M_Williams
Back in the heady days of Alan Greenspan, when you couldn’t identify a bubble until it was too late, the Maestro was busy printing. The money went into the tech stocks up until that train went off the tracks in early 2000. So the Fed started to print even more and that led to a housing bubble. As most of us are painfully aware, the housing blew up in 2007 so Greenspan’s predecessor, Ben Bernanke, had to put the printing press into a higher gear. The Fed then created mandates in order to justify the excesses and they included increased growth and employment. Unemployment must drop to 6% or less and growth must surpass 3% while keeping inflation at 2%. The end result of all this is a chart of the money supply that looks like this:
Monday, May 27, 2013
Economic Prosperity - You Can't Print, Borrow, ZIRP, QE, or OMF It / Stock-Markets / Quantitative Easing
By: Bill_Bonner
Gold rose $24 per ounce Thursday. The Dow fell 12 points.
The smart money is using this dip to buy gold.
Why?
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Monday, May 27, 2013
Funny Money Turns Serious / Interest-Rates / Quantitative Easing
By: Brady_Willett
When former Asian Development Bank head, Haruhiko Kuroda, was nominated to be the next Bank of Japan Governor on February 27, 2013 he was not shy about stating his intentions: “there is "plenty of room for monetary easing”” (WSJ). And after landing the job as BOJ Chief, Kuroda immediately confirmed that he would do “whatever it takes” to end deflation. Well, a mere two months and a massive new printing scheme later, Kuroda is already on the defensive, arguing that a recent jump in bonds yields is manageable and asset prices are not behaving irrationally.
Wednesday, May 22, 2013
Why Bernanke and His Pals Are Terrified / Interest-Rates / Quantitative Easing
By: Graham_Summers
Two big events have occurred/ are occurring.
1) Chicago Fed President, Charles Evans who is one of the biggest pushers for QE, stated that the Fed has “the appropriate monetary policy in place” and that the economy is “improving quite a lot.”
2) The Bank of Japan is beginning a two-day policy meeting today.
Regarding #1, Evans has been one of the biggest pushers for more QE. Throughout 2011 and 2012, every time he appeared on TV he stated that the Fed should do more.
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Friday, May 17, 2013
A Reminder, the Fed Is NOT Printing Money / Politics / Quantitative Easing
By: Jesse
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So I think central banking, I believe, has learned the dangers of fiat money, and I think, as a consequence of that, we've behaved as though there are, indeed, real reserves underneath the system." Alan Greenspan, 20 July 2005
Friday, May 10, 2013
The Fed Admits it's Dug itself into a Very Big Hole / Interest-Rates / Quantitative Easing
By: Bloomberg
Charles Plosser, president of the Philadelphia Federal Reserve Bank, told Tom Keene and Sara Eisen on "Bloomberg Surveillance" today that "we've dug ourselves a very large hole" and that "when I've weighed the costs and benefits of this [quantitative easing] policy, I've decided that the costs outweigh the benefits."
Plosser also said that it is "disturbing" to him that "more and more is being expected of central banks." He said, "We are expected to solve all the world's problems. Our fiscal authorities are not doing a very good job in any country."
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Tuesday, May 07, 2013
QE Unprecedented, Exit Will Be a 'Messy Process' / Interest-Rates / Quantitative Easing
By: Bloomberg
David Zervos, head of global fixed income at Jefferies, told Bloomberg TV's Erik Schatzker and Sara Eisen on "Market Makers" today that the Federal Reserve's QE program is "the greatest monetary policy experiment of our lifetime and I do not think that anyone is smart enough, me, any central banker up there" to figure out how to properly exit.
Tuesday, May 07, 2013
The Incredible Weight of Quantitative Easing Money Printing / Stock-Markets / Quantitative Easing
By: DeviantInvestor
Skip the supposed theory and purpose of Quantitative Easing, and ask yourself what is its equivalent weight? Suppose we use the $85,000,000,000 per month that is officially acknowledged and round it to $1,000,000,000,000 per year and relate that $1 Trillion per year to items more easily understood.
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Monday, May 06, 2013
QE Has Been and Will Be a Complete and Utter Failure / Economics / Quantitative Easing
By: Graham_Summers
The Fed is now blaming Congress for the failures of its QE policies.
This is to be expected, given that no one in the power elite ever accepts responsibility for their own failures. Congressional members blames each other (depending on which party they’re in), the Fed blames Congress, the White House blames the GOP, and on and on.
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Saturday, May 04, 2013
Sell in May and go away? The Stock Market QE Sandpile Theory / Stock-Markets / Quantitative Easing
By: John_Mauldin
Sell in May and go away? What about "risk off?" And ever more QE? Today's letter is a quick note and a reprise of a popular letter from yesteryear (with a bit of new slant), as I am at my conference in Carlsbad.
But first, I thought I would shoot you a few quick, interesting notes that crossed my desk in the last week. It is almost a ritual for me to mention at this time of year the old investment saw, "Sell in May and go away." It has been surprisingly good advice in most years. My good friend Art Cashin is a curator (and prodigious progenitor) of investment wisdom. He offers these two insights from his research:
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Wednesday, May 01, 2013
Global Central Bank Money Printing Will Cause Long-Term Damage / Interest-Rates / Quantitative Easing
By: InvestmentContrarian
Sasha Cekerevac writes: One of the most confusing topics of late is the low level of the inflation rate even though monetary stimulus has been quite aggressive worldwide. The most recent data point came from Japan, in which consumer prices dropped by 0.5% in March versus the same time in 2012.
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Sunday, April 14, 2013
What if QE3 Money Actually had to be Printed? / Politics / Quantitative Easing
By: Submissions
Richard Moyer writes: As we speak, the US Federal Reserve, led by Ben Bernanke and his Raiders, is printing a not-too-shabby $85 billion a month.
Thursday, April 11, 2013
Missing Lynchpin Of Japan's Great Experiment - Trust / Politics / Quantitative Easing
By: Andrew_McKillop
JAPAN'S GREAT EXPERIMENT
Describing the antics of the Japanese government and its central bank (BOJ) as "not just running the largest monetary experiment in their history, but also the largest social engineering experiment", Chris Martenson of Peak Prosperity in a recent ZeroHedge post concludes: "Were I a Japanese citizen, I would immediately convert my Yen holdings to something, anything, else. Swiss francs, gold, dollars – anything (!) would be preferable......Once your central bank declares war on its own currency, this is just the prudent thing to do".
Wednesday, April 10, 2013
Yenfamy, Propelling Japan's Economy Toward Certain Reckoning / Economics / Quantitative Easing
By: John_Mauldin
By Grant Williams writes: April 4 is a day when things tend to happen. Big things.
April 4, 1841 saw President William Henry Harrison, the ninth President of the United States, die of pneumonia after only 31 days in office. Twenty-four years later to the day, President Abraham Lincoln would be haunted by a disturbing dream. As Lincoln's close friend Ward Hill Lamon recollected:
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Wednesday, April 10, 2013
How Central Banks’ Easy Solution Could Devastate the Global Economy / Economics / Quantitative Easing
By: InvestmentContrarian
Sasha Cekerevac writes: Central banks around the world have opened the floodgates with massive levels of quantitative easing in an effort to try to stimulate their respective economies. Turning on the quantitative easing tap is easy; putting the genie back in the bottle will be extremely difficult for central banks globally.
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