Category: Quantitative Easing
The analysis published under this category are as follows.
Friday, June 05, 2015
Debt and the Tinderbox / Stock-Markets / Quantitative Easing
By: DeviantInvestor
We know that the Federal Reserve cranked up their digital printing presses and created over $16 Trillion in new currency, swaps, loans, bailouts, gifts, etc. in response to the 2008 financial crisis. Example: Bernie Sanders says that Bank of America received over $1.3 Trillion in bailouts.
If you invested in stocks and bonds, the various QE – “money printing” programs were probably successful for you. Examine the following chart and note the impact of QE on the S&P 500 Index.
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Friday, June 05, 2015
QE Breeds Instability / Stock-Markets / Quantitative Easing
By: Raul_I_Meijer
Central bankers have promised ad nauseum to keep rates low for long periods of time. And they have delivered. Their claim is that this helps the economy recover, but that is just a silly idea.
What it does do is help create the illusion of a recovering economy. But that is mostly achieved by making price discovery impossible, not by increasing productivity or wages or innovation or anything like that. What we have is the financial system posing as the economy. And a vast majority of people falling for that sleight of hand.
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Friday, June 05, 2015
The Ugly Truth Behind the Fed's Quantitative Easing / Interest-Rates / Quantitative Easing
By: ...
MoneyMorning.com Shah Gilani writes: The growing income and wealth gap between the rich and poor, most of whom used to be called middle class, has many fathers. But behind the scenes one primary cause emerges. It's the greatest financial disruptor of modern times: Quantitative Easing (QE).
While the jury's out on whether QE will eventually be the step-ladder that lifts us out of the lingering Great Recession, as its proponents argue, the facts demand that the verdict on QE's egregious enrichment of the rich and subjugation of everyone else is: "guilty."
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Thursday, June 04, 2015
Japan’s Easy-Money Experiment and the Future / Interest-Rates / Quantitative Easing
By: MISES
Brendan Brown writes: The International Monetary Fund (IMF), once the conductor of a global dollar exchange standard based partially on gold convertibility, has mutated into the official platform for the 2 percent inflation standard launched surreptitiously by the Greenspan Fed in July 1996. The Federal Open Market Committee (FOMC) then approved a position paper by Professor Yellen that price stability should mean 2 percent inflation forever. Europe joined the standard in 1998, and Japan became the newest member in January 2013.
Thursday, May 28, 2015
U.S. Fed Exported QE Travesty: Meet The BLICS Nations / Interest-Rates / Quantitative Easing
By: Jim_Willie_CB
The aggravated global financial situation is working toward a series of powerful climax events. The various USDollar platforms are either undergoing seizure or suffering from abandonment by primary players. The grand Reich Finance application is failing finally, with extraordinary lies, propaganda, market rigging, doctored statistics, and $trillion patches leaking. The Western banking system is being lashed at another level, after the multi-lateral lashing with derivatives tied the big Western banks all together following the Lehman killjob in 2008. A new global lashing has begun to show itself, yet another obscenity. Witness the export of QE globally by the USFed via the unlimited vast Dollar Swap facilities (massive slush funds). The new 5 BLICS nations under Western thumb are being used to purchase huge tracts of USTreasury Bonds, surely using Dollar Swap funds, on behalf of the USFed master criminal organization. One is left to wonder what the sweetener was for the five nations, like perhaps shared narcotics funds, or a promise of hidden banking system relief. The self-dealing using nations to buy USTBonds with free money has come to the fore, in another desperate attempt to save the system. It cannot be saved. It is cratering. It is rotting from the inside. It is fracturing. It will fail. The fiat paper currency system and its many attendant systems are seizing up, being rejected, and are failing in what has begun to be the grandest financial event in modern history.
Thursday, March 19, 2015
European QE Creates Distortions in World Economy / Economics / Quantitative Easing
By: John_Browne
In the closing months of 2014, Germany faced a difficult dilemma. Although its own economy was holding up well, incoming data showed that the rest of the Eurozone was rapidly slipping into recession. As a result, the calls for the European Central Bank (ECB) to unleash its own quantitative easing campaign grew louder. However, the policy had always been unpopular in Germany, both among high financial officials and rank and file Germans, where a strong euro has been prized. But in the end, Berlin was 'persuaded' to drop its efforts to forestall a QE campaign that everyone else in the world seemed to want.
Tuesday, March 17, 2015
ECB's QE / Interest-Rates / Quantitative Easing
By: Arkadiusz_Sieron
Just one week after the surprising Swiss decoupling from the euro peg, the ECB unleashed its quantitative easing program. On January 22, the President of the ECB, Mario Draghi, announced a €1.1 trillion monetary injection plan, which would start in March 2015 and last until the end of September 2016, or "until we see a sustained adjustment in the path of inflation". What does this €60bn monthly bond-buying program imply for the economy and gold market?
Monday, March 16, 2015
The ECB Should End QE Next Month / Interest-Rates / Quantitative Easing
By: EconMatters
Mario Draghi backed into Unenviable Corner
This was an instance where the markets pushed Mario Draghi in a direction that really wasn`t necessary, an area he knew deep down was fruitless, and in the end will be proven to be a complete waste of time, forestalling the inevitable structural changes required for Europe to grow in a competitive fashion over the next decade.
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Monday, February 16, 2015
Can Europe Recover From Its Easy-Money Obsession? / Interest-Rates / Quantitative Easing
By: MISES
Brendan Brown writes: The announcement of the euro-QE was not the start of Europe’s monetary Dark Age. That started many years ago with Chancellor Kohl’s undermining of the “hard deutsche mark Bundesbank” in the late 1980s. The darkness further descended when the newly created European Central Bank (ECB) implemented monetary frameworks which essentially tied Europe into a global 2-percent-inflation standard, following the US Federal Reserve.
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Thursday, February 12, 2015
You Can’t Create More Savings by Printing More Money / Economics / Quantitative Easing
By: Frank_Shostak
Savings has nothing to do with money. For instance, if a baker produces ten loaves of bread and consumes one loaf, his savings is nine loaves of bread. In other words, the “savings” in this case is the baker’s real income (his production of bread) minus the amount of bread that the baker consumed. The baker’s savings now permits him to secure other goods and services.
For instance, the baker can now exchange his saved bread for a pair of shoes with a shoemaker. Observe that the baker’s savings is his real means of payments — he pays for the shoes with the saved bread. Likewise, the shoemaker pays for the nine loaves of bread with the shoes that are his real savings.
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Saturday, January 31, 2015
Europe Joins the QE Party / Interest-Rates / Quantitative Easing
By: Frank_Hollenbeck
The European Central Bank (ECB) finally pulled the QE trigger by committing to purchase 60 billion euros of government debt and other assets every month until September of 2016 or until inflation gets closer to 2 percent.
The made-up excuse for this legal counterfeiting is that Europe is dangerously close to having (a very flawed) index of consumer prices drop below zero; as though calamity would strike Europe if the index were to register a negative number. The ECB claims it needs to print money because lower oil prices and — previous to that — a stronger euro were causing average prices to deviate from its 2 percent inflation target. It’s like having your supermarket run a 50 percent off sale on steak one weekend, and then having the ECB try to make all other prices in the supermarket go up so your total bill at the cash register goes up.
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Monday, January 26, 2015
Why QE in Europe Will Fail / Interest-Rates / Quantitative Easing
By: Michael_Pento
The fear of deflation has become the cornerstone of Keynesian economic thought. A lack of inflation has been used to explain periods of economic weakness from the Great Depression of the 1930’s, to the Great Recession 2008-2009. And now, that philosophy has been adopted as gospel by those that control the Federal Reserve and virtually every central bank on the planet.
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Monday, January 26, 2015
How Eurozone QE Works: A Guide to Draghi's News / Interest-Rates / Quantitative Easing
By: Money_Morning
Jim Bach writes: European Central Bank President Mario Draghi announced a quantitative easing program today (Thursday) that was complicated, poorly explained, and drastically unlike U.S. QE.
So, to help make sense of this, we drilled down exactly how Eurozone QE works.
First the basics.
Through Eurozone QE, the ECB will pump 60 billion euros ($68.1 billion) a month into the economy. About 10 billion euros of that will come from existing assets and covered bond purchasing programs. But the other 50 billion euros will come from purchases of member countries' sovereign debt, a new development in the Eurozone monetary policy.
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Sunday, January 25, 2015
Draghi's "No-growth" QE Money for Stocks, Zilch for the Economy / Interest-Rates / Quantitative Easing
By: Mike_Whitney
Let’s say you’re diagnosed with colorectal cancer. But instead of going to a professional for help, you decide to treat yourself with glycerol suppositories and high doses of Vitamin C.Well, then, you’re probably going to die, right?This same rule applies to economics. If you try to reduce unemployment and boost growth by doing something completely unrelated to the problem itself, like dumping trillions of dollars into financial assets, then you’re not going to get the results you want.This is largely the problem we face today. All of the economies controlled by the western bank cartel–Australia, Canada, US, UK, Eurozone, and Japan—are suffering from chronic lack of demand, the likes of which could be easily remedied by following Keynes recommendation of “government directed investment”.
Friday, January 23, 2015
Euro-zone 'QE already Working' Says IMF Lagarde / Interest-Rates / Quantitative Easing
By: Mike_Shedlock
Today, ECB president Mario Draghi announced his much awaited QE program that will allegedly save Europe from the imaginary perils of price deflation. See Deflation Bonanza! (And the Fool's Mission to Stop It).
Stocks are up a bit, the dollar is up a bit, the yen is up a bit, and gold is up a bit. Oil is down a bit.
The details are more or less along the lines most thought, not the celestial "big bang" that everyone hoped.
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Friday, January 23, 2015
Is 1.2 Trillion Euros The Right Answer To The Wrong Question? / Interest-Rates / Quantitative Easing
By: DK_Matai
Good News Or Bad News?
Once upon a time something good happened for Europe. The price of oil went down dramatically. When the oil price halved in the last months of 2014, there was no way for the European Central Bank (ECB) to fulfill its mandate of keeping price growth close to 2 percent a year. The ECB painted itself into a corner by targeting headline inflation, not core inflation, which excludes food and energy. Left with no choice, the ECB announced on 22nd January 2015 that it would begin printing digital money in large quantities, ie, start Quantitative Easing or QE in the near future. Contrary to popular myth, QE doesn't fight 'deflation', it rather causes it by keeping zombie banks alive. Why? Quantitative easing simply buries money in commercial bank vaults, by bolstering their balance sheets, when it is cash in circulation that is desperately needed.
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Friday, January 23, 2015
ECB and EU LTRO and QE for Dummies: Or, Make These Trades / Stock-Markets / Quantitative Easing
By: Money_Morning
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Friday, January 23, 2015
Market Should Not Doubt' Mario Draghi ECB QE / Stock-Markets / Quantitative Easing
By: Bloomberg
Larry Fink, CEO and Chairman of BlackRock, spoke with Bloomberg TV's Erik Schatzker and Stephanie Ruhle today at the World Economic Forum's annual meeting in Davos, Switzerland. Fink discussed the European Central Bank's asset-purchase plan and the outlook for the euro-dollar exchange rate, Federal Reserve policy and the U.S. economy. He also spoke about the Swiss National Bank's decision to abandon its currency cap.
Reacting to the ECB's quantitative easing announcement, Fink said: I think we've seen over the last few years you have to trust in Mario...the market should not doubt Mario. He's been able to pull this through...This monetary policy is going to keep the euro weak. And I think a weakened euro will allow European companies to improve. So I do think the European economies will be marginally better this year than last year."
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Wednesday, January 21, 2015
Investor implications of QE by the ECB / Stock-Markets / Quantitative Easing
By: Axel_Merk
Is European Central Bank (ECB) head Draghi’s determination to purchase government bonds turning Europe into a banana republic? What are the implications not only for the euro and U.S. dollar, but gold, stocks and bonds? Our analysis shows that conventional wisdom may be proven wrong in more than one way.
Tuesday, January 20, 2015
Swiss Say No to QE / Stock-Markets / Quantitative Easing
By: Harry_Dent
The markets have had an array of abrupt reactions to the Swiss National Bank’s (SNB) move to stop supporting the Swiss Franc against the euro from buying Swiss bonds.
The euro has crashed further, stocks have taken minor hits and gold has broken to the upside (as we expected near term).
But the biggest impact is likely to be on Mario Draghi’s up-and coming decision to ignite another heavily telegraphed round of quantitative easing (QE) to the tune of $1.2 trillion plus.
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