Category: Quantitative Easing
The analysis published under this category are as follows.
Monday, November 29, 2010
Modern Academic Economists Misinterpret Quantitative Easing / Economics / Quantitative Easing
By: Barry_Elias
If you are interested in promoting long-term, sustainable economic growth, I submit the velocity of money is more pertinent than the quantity of money (quantitative easing).
Apparently, many modern economists haven’t focused sufficiently on this economic parameter.
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Friday, November 26, 2010
Ellen Brown endorses Bernanke and QE2 / Politics / Quantitative Easing
By: Gary_North
In my November 22 article announcing Ellen Brown's defection to the Federal Reserve, I wrote this:
If she tries to defend herself by saying, "This is consistent with what I have always said," then she is dumber than dirt, or else she thinks her followers are dumber than dirt.
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Thursday, November 25, 2010
Ellen Brown Response to Gary North: QE2 IS the Populist Solution / Economics / Quantitative Easing
By: Ellen_Brown
Gary North, who purports to be an expert on the errors in my book “Web of Debt,” has evidently not actually read it. In an article posted on the Market Oracle on November 23, he says that in calling QE2 (the Fed’s new quantitative easing program) a “bold precedent,” I have switched sides. He apparently missed the entire chapter I wrote on this subject, first published in “Web of Debt” in 2007, saying exactly what I am saying now.
Wednesday, November 24, 2010
QE2 and The Great Economic Misdiagnosis, Insolvency Not Illiquidity / Economics / Quantitative Easing
By: Jim_Willie_CB
The backdrop has turned dire on several front simultaneously. The great millstone around the USEconomy's neck continues to drag it down. CoreLogic reported 2.1 million units have created a swamp in Shadow inventory of the housing market. That equates to 23 months inventory, whereas normal is 7 months. They tallied the growing tumor of bank owned properties as a result of home foreclosures, also called the REOs (real estate owned). Look for no housing market recovery for at least another two years. Starting in summer 2007, the Jackass forecast each year has been for another two years of housing market declines, all correct. Ireland might be squarely in the news, but the big enchalada is Spain. The Irish banks have presented a grand headache for the European banks, with a $150 billion exposure. Ironically, Ireland has done more to reduce its budget spending effectively than any EU member nation, yet is left to twist in the soft rain. They cut their government budget by 20%.
Wednesday, November 24, 2010
Fed’s Bearish Outlook Justifies QE2 / Economics / Quantitative Easing
By: Asha_Bangalore
The minutes of the November 2-3 FOMC meeting include forecasts about real GDP, inflation, and employment from members of the FOMC. The main conclusion from the new forecast is that the Fed is less sanguine about the pace of economic activity in the final three months of 2010 and 2011 compared with the previous forecast (see table below). The downward revision of growth and an upward revision of employment entirely justifies the announcement of the second round of quantitative easing of $600 billion.
Tuesday, November 23, 2010
Ellen Brown, Bernanke's Money Printing Cheerleader / Politics / Quantitative Easing
By: Gary_North
Ellen Brown is a lawyer. Lawyers are trained to settle a case when they are losing. Brown just settled with me.
She has just switched sides. Instead of becoming an Austrian School critic of the Federal Reserve, she has become its cheerleader.
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Monday, November 22, 2010
Does the Fed Create Money? / Interest-Rates / Quantitative Easing
By: Michael_Pento
Certain deflationists have recently gone on record saying that the increase in the Fed's balance sheet is meaningless with regard to creating inflation because our central bank can't print money, it can only create bank reserves. The problem with their view is that it both disregards the definition of money and ignores the process of creating bank reserves.
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Sunday, November 21, 2010
Are We Living in the Federal Reserve's QE2 Twilight Zone? / Economics / Quantitative Easing
By: Trader_Mark
On Monday, an old friend sent me a link to a now virally famous cartoon clip via YouTube. The clip is a depiction of the Federal Reserve's second round of quantitative easing in a simplified, humorous manner and has been viewed over 1.6 million times, not to mention it had a front and center showing on CNBC.
Friday, November 19, 2010
Robert Prechter Explains The Fed, Interest Rates, Quantitative Easing (QE2), Monetary Stimulus / Interest-Rates / Quantitative Easing
By: EWI
The ongoing financial crisis has made the central bank's decisions -- interest rates, quantitative easing (QE2), monetary stimulus, etc. -- a permanent fixture on six-o'clock news.
Yet many of us don't truly understand the role of the Federal Reserve.
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Friday, November 19, 2010
How the Fed Has Fooled Us with Quantitative Easing / Interest-Rates / Quantitative Easing
By: Money_Morning
Shah Gilani writes:
With a second round of "quantitative easing" underway, the U.S. Federal Reserve wants us to believe that it is doing its duty as the nation's central bank – promoting maximum employment, keeping a lid on inflation and making sure that long-term interest rates remain at reasonable levels.
This is known as the Fed's "dual mandate," since the inflation and interest-rate objectives are really the same goal.
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Tuesday, November 16, 2010
Economies are Crumbling as Governments Play Musical Chairs with Money Printing / Economics / Quantitative Easing
By: Captain_Hook
If there were a truism to fit a broad cross-section of behaviors in our society today, the catchphrase ‘desperate men do desperate things’ fits well, for sure. This is because you can see it everywhere on an increasing basis as economies of all shapes and sizes disintegrate. And it spreads like a disease, reaching all quarters of our society(s), in one way or another, propagated at the core by greedy money-center bankers and their political oligarchs hopelessly attempting to prevent a collapse of the larger fiat currency economy, hegemony economics, and US Dollar ($) supremacy. Here, it’s important to understand that when the US can no longer print the money to pay its bills the present game of musical chairs will cease and centralization will quickly reverse into regionalism, returning us to more primitive but sound economies.
Tuesday, November 16, 2010
Academic Economists Complain About QE II, Republicans Call for Abandoning $600 Billion Bond Purchase / Politics / Quantitative Easing
By: Mike_Shedlock
Please consider this Open Letter to Ben Bernanke from 23 economists posted in the Wall Street Journal.
Read full article... Read full article...We believe the Federal Reserve’s large-scale asset purchase plan (so-called “quantitative easing”) should be reconsidered and discontinued. We do not believe such a plan is necessary or advisable under current circumstances. The planned asset purchases risk currency debasement and inflation, and we do not think they will achieve the Fed’s objective of promoting employment.
Monday, November 15, 2010
Shocked that QE2 is Akin to Printing Money and Public Debt Monetization! / Interest-Rates / Quantitative Easing
By: Paul_L_Kasriel
Every student who took Econ 101 and stayed awake during the lectures learned that the Federal Reserve has the power to create credit figuratively "out of thin air." The A-students also learned that the commercial banking system, not individual banks, under the fractional-reserve system that we and every other developed economy has also has the power to figuratively create credit out of thin air if the Federal Reserve first provides the "seed" money to do so. This is not unique to the Federal Reserve and the U.S. commercial banking system. This holds wherever there are central banks and fractional-reserve commercial banking systems. So, when there is an increase in the sum of Federal Reserve credit and commercial banking system credit, credit is created out of thin air, which is akin to "printing money."
Monday, November 15, 2010
Fed QE Money Printing Getting Even Wilder! / Interest-Rates / Quantitative Easing
By: Martin_D_Weiss
I’ve seen a lot of crazy monetary shenanigans in my lifetime — in Brazil, Japan and elsewhere.
But I’ve never seen anything quite like the explosion of out-and-out money printing we’re witnessing in the United States today.
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Monday, November 15, 2010
Deflation, Inflation and Goldman Sachs Role in Quantitative Easing Explained / Politics / Quantitative Easing
By: Videos
What the Federal Reserve is up to, and how we got here and why.Read full article... Read full article...
Saturday, November 13, 2010
Global Monetary Stalemate, Quantitative Easing Won't Work / Economics / Quantitative Easing
By: Bob_Chapman
Mr. Bernanke is trying to avoid the Japanese experience of the past 20 years. Underlying deflation is being offset again, as it has been for the past eight years, by creating more money and credit. The only one lose to our prediction of mid-May of $5 trillion over two years is Keynesian economist Paul Krugman. He said the Fed would need $6 trillion. The Republicans seized the House and all that has really been accomplished is gridlock, the end of stimulus and a cut of perhaps $100 billion in debt.
Saturday, November 13, 2010
Sterilizing Money at the QE Corral / Interest-Rates / Quantitative Easing
By: Richard_Daughty
There are a lot of intricacies in the Federal Reserve's evil ways, especially as concerns creating $900 billion in the next six months in another round of quantitative easing, and one of them is explained by Daniel R. Amerman of DanielAmerman.com. He says, "There is something else essential for investors and savers to understand about the process which the Federal Reserve has just outlined. The Federal Reserve is not directly purchasing treasury bonds from the US government. Instead, US banks are purchasing the bonds from the US Treasury to fund the deficit, and then selling an equal amount of other bonds (likely at a nice profit) to the Federal Reserve."
Friday, November 12, 2010
QE2, They Just Don't Get It / Interest-Rates / Quantitative Easing
By: Paul_L_Kasriel
No, I am not talking about the Democratic Party. I am talking about the mainstream commentators on the Federal Reserve's second round of quantitative easing, or QE2. In their defense, perhaps one of the reasons they don't get is because the way the Fed, itself, marketed it. This might suggest that the Fed doesn't really get it either. Firstly, the fact that the Fed announced that QE2 would involve the purchase of Treasury coupon securities rather than Treasury bills implied that one of the goals of QE2 was to bring down the interest rate levels on longer-maturity securities. Why is it so desirable to bring down the yield on longer-maturity securities? Because for decades, economists have clung to the unsubstantiated hypothesis that the interest rates on longer-maturity securities are what "count" in terms of decisions related to private-fixed investment expenditures.
Friday, November 12, 2010
Bernanke QE2 Program Backfiring! Global Money War Intensifying! / Interest-Rates / Quantitative Easing
By: Mike_Larson
The reviews are coming in fast and furious — and they’re downright terrible!
I’m not talking about the latest romantic comedy or action movie. I’m talking about the reviews of the Federal Reserve’s quantitative easing, or “QE2,” program! Get a load of these comments …
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Wednesday, November 10, 2010
Bernanke’s Money Printing Monetary Policy Is Doomed! / Interest-Rates / Quantitative Easing
By: Claus_Vogt
Last week Ben Bernanke wrote an article for The Washington Post to justify the Fed’s decision of another round of quantitative easing. Here’s his core argument:
Read full article... Read full article...“Easier financial conditions will promote economic growth. For example, lower mortgage rates will make housing more affordable and allow more homeowners to refinance. Lower corporate bond rates will encourage investment.