Category: Quantitative Easing
The analysis published under this category are as follows.Tuesday, March 26, 2013
Should Bernanke Park the Helicopter? / Economics / Quantitative Easing
According to Ben Bernanke, pulling back on aggressive policy measures too soon would pose a real risk of damaging a still-fragile recovery.
The Fed chief is of the view that, for the purposes of financial stability, a continuation of the central bank’s aggressive stimulus, conducted through purchases of Treasury and mortgage securities, remains the optimal approach.
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Sunday, March 03, 2013
The True Cost of the Current U.S. Federal Reserve Easy Money Stance / Stock-Markets / Quantitative Easing
Sasha Cekerevac writes: Federal Reserve Chairman Ben Bernanke testified in front of Congress and faced a barrage of questions and criticisms regarding the central bank’s monetary policy initiative.
There are a growing number of critics voicing their concerns over the current monetary policy path set forth by the Federal Reserve. These critics aren’t only independent analysts such as myself, (I have been writing articles on the topic for some time now, including the article “Current Monetary Policy Unsustainable”), but economists who have worked closely with the Federal Reserve in the past.
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Saturday, March 02, 2013
What the Bank of Japan, China’s Government and the Fed Have in Common / Interest-Rates / Quantitative Easing
As we’ve noted in recent articles, the US Federal Reserve has blown another bubble in stocks and facilitating the exact same risk-taking behavior that brought about the 2008.
The Fed realizing that it’s done this, which is why it’s now trying to manage down expectations of future stimulus (see the multiple suggestions from Fed officials that the Fed might reduce QE before hitting its unemployment target).
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Friday, March 01, 2013
A Close Encounter With Zombiedom / Stock-Markets / Quantitative Easing
Ben Bernanke spoke out on Tuesday, leaving no doubt where he stands on the QE issue. To print or not to print? He hardly seemed to think about it. Instead, he announced himself four-square in favor. If there is to be any prudence or propriety at America's central bank, it won't be on his watch!
This seemed to put some starch into investors' nerves. After a big sell-off on Monday... and a bounce on Tuesday... they went back into the markets yesterday with a single-minded command: "Buy!"
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Saturday, February 23, 2013
The ‘End’ of QE – Hype or Tripe? / Interest-Rates / Quantitative Easing
I am going to say right up front that there is going to be quite a bit of sarcasm in this essay. I say this simply because of the ludicrous nature of our marionette-esque talking heads in the mainstream financial press in this country. They are truly amazing, taking molehills and making mountains out of them and vice versa. In one segment telling us that there in fact will be no criminal charges against anyone involved in the HSBC drug/terrorism money laundering scandal – if they talk about it a all – while in the next advocating holding the next ten generations hostage by supporting the continued subsidy of said corrupt organization et al with fiat money printed from nothing with the debt placed on the taxpayer’s tab.
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Saturday, February 23, 2013
PIMCO's Bill Gross Expect QE To Continue To At Least End Of 2013 / Interest-Rates / Quantitative Easing
PIMCO's Bill Gross told Bloomberg Television's Trish Regan and Adam Johnson on "Street Smart" yesterday that quantitative easing will continue to "at least the end of the year."
Gross said that the Federal Reserve knows that its policy has negatives: "There are ultimately and presently negatives to these policies. The chairman recognizes that." He also spoke about returning to the gold standard, which would be "very difficult."
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Wednesday, February 06, 2013
QE for Dummies, Understanding the Most Outlandish Monetary Experiment Ever Conducted - Part1 / InvestorEducation / Quantitative Easing
A PeakProsperity.com reader recently lamented:
Read full article... Read full article...I have been trying to get my head around the mechanism of QE. Not being an economist or experienced investor I don't really understand a lot of the jargon. The usual simple definition of QE as "thin air money printing" does not satisfy my need for understanding either. Have hunted for a description of QE for dummies that leaves me feeling like I get it, but with no luck. My difficulty is in understanding how thin air money gets into circulation.
Wednesday, January 30, 2013
Will the Fed End QE Summer 2013? / Interest-Rates / Quantitative Easing
Jeff Uscher writes: Amid all of the hoopla over the Standard & Poor's 500 Index touching 1,500 on Friday, it seems few people noticed that the yield on 10-year U.S. Treasury bonds has risen to within a couple of basis points of 2%. That is nearly 30 basis points higher than it was one month ago and 10 basis points higher than one year ago.
It seems as if the bond market is beginning to price in higher inflation at the long end of the yield curve, and that is something that has got to be worrying the Fed.
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Tuesday, January 29, 2013
How To Spot A Zombie / Stock-Markets / Quantitative Easing
That thing in Davos is on again, the World Economic Forum, sort of like the Academy Awards without awards but with the same peacock factor. And snow. Full of business leaders and government leaders and media leaders, the vast majority of whom are the same folks who attended before this crisis broke you but not them into pieces, and easily enough to make you realize with a shudder what an unmitigated disaster it is that these are the people who are supposed to take the world back to financial health. Simply because they are the people who profit most from the state of the world as it is, or they wouldn't be there. And they are the chosen ones destined to save you? They are only out to save themselves.
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Wednesday, January 09, 2013
Federal Reserve May Pause Quantitative Easing / Interest-Rates / Quantitative Easing
An obscure report that the Federal Reserve may suspend the monetization of purchasing Treasury Bonds has the smell of disinformation. The perennial efforts to lift economic spirits with the beginning of a New Year often are packed with wishful thinking. Quantitative Easing is being treated as a useful tool for turning on and off the spigot of liquidity infusion. In reality, the results of the massive origination of debt created monies fundamental purpose is to save the commercial banks from insolvency.
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Saturday, January 05, 2013
Did the Fed Lie About QE 3 and 4? / Stock-Markets / Quantitative Easing
It’s common belief that Bernanke and the Fed are printing $85 billion per month ($40 billion to buy Mortgage Backed Securities and $45 billion to buy Treasuries). After all, these are the policies that the Fed announced in September and December 2012, respectively.
The only issue with this is that the Fed lied.
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Friday, January 04, 2013
Federal Reserve Members Question QE Beyond 2013 / Stock-Markets / Quantitative Easing
The Federal Reserve launched its highly anticipated fourth round of quantitative easing in December. The latest money-printing program came only three months after the central bank’s unlimited QE3 was announced. Now, recent Federal Open Market Committee minutes show that policymakers are dividend about expanding the Fed’s balance sheet to unprecedented levels.
According to the just released FOMC minutes, several members want to ease off the monetary easing gas pedal by the end of this year, sooner than expected.
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Monday, December 24, 2012
Ben Bernanke's Ghost of QE Past, Present, and Future / Interest-Rates / Quantitative Easing
It was the best of times; it might be the worst of times.
Dollar bills glide effortlessly to the ground, dropped from the giant QE machine in the sky. All is quiet, all is calm. There is peace on earth, well, at least in Washington D.C. and on Wall Street. And then with a horrible crash, another Mortgage Backed Security (MBS) explodes and collateral damage spreads far and wide.
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Thursday, December 20, 2012
QE4 Ever: Emerging Signs of A New Global Crisis / Stock-Markets / Quantitative Easing
A more than one trillion dollar debasement in 2013 is now apparent.
Last week, the Federal Reserve announced an expansion of its bond-buying program consisting in large scale purchases of long-term treasury securities.
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Wednesday, December 19, 2012
Global Economy Drowning in Printed Money / Stock-Markets / Quantitative Easing
Erroneously believing themselves the cause of their good fortune, Americans continue to deny a changing world
In 2006, when I began writing my book on the coming economic collapse, I didn’t know what the Fed would do regarding liquidity. At the time, whether the Fed would raise or lower interest rates was a soon-to-be multi-trillion dollar question.
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Monday, December 17, 2012
Bernanke’s Balance Sheet Ensures Disaster / Interest-Rates / Quantitative Easing
As expected, Ben Bernanke officially launched QE IV with his announcement last week of $85 billion dollars worth of unsterilized purchases of MBS and Treasuries. In unprecedented fashion, the Fed also tied the continuation of its zero interest rate policy and trillion dollars per annum balance sheet expansion to an unemployment rate that stays above 6.5%. Now, pegging free money and endless counterfeiting to a specific unemployment figure would be a brilliant idea if printing money actually had the ability to increase employment. But it does not.
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Sunday, December 16, 2012
QE4, The Fed's Fantastic Failure / Interest-Rates / Quantitative Easing
Question: When is an unprecedented economic event tantamount to a non-event? Answer: When another Fed intervention is announced.
The U.S. Federal Reserve bank announced this week the commencement of a new round of Treasury purchases to the tune of $45 billion a month to replace the expiring Operation Twist. This is in addition to the recently launched QE3 program that committed the Fed to buying $40 billion a month in mortgage-backed securities. The grand total of these central bank interventions amounts to some $1 trillion a year in government debt markets.
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Sunday, December 16, 2012
Bernanke's Great Strategy, Need More Money? Print it! / Stock-Markets / Quantitative Easing
George Leong writes: Federal Reserve Chairman Ben Bernanke has spoken, and to no one’s surprise, the printing of money in America will continue and intensify under the soon-to-be newly launched “Quantitative 4” program, or “QE4.” So now we have had several Federal Reserve programs to keep the flow of money going, and now it looks like there will be more money printing.
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Friday, December 14, 2012
Fed QE Policy Means U.S. Treasury Issuing Debt For Free, Money for Nothing / Interest-Rates / Quantitative Easing
PIMCO's Bill Gross told Bloomberg Television's Betty Liu on "In the Loop" today that the Federal Reserve's latest round of monetary stimulus will enable Treasury to issue debt for no cost.
Gross said, "what really happens, and this is critically important, is that the Treasury issues bonds and the Fed buys them and then it remits interest to the Treasury...It basically means that the Treasury is issuing debt for free...Inflation is one of the complications."
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Monday, December 03, 2012
Bank of England Cancels Britain's Debt, Coalition Government Budget Deficit Crisis is Pure Propaganda / Interest-Rates / Quantitative Easing
The focus of this article is on Britains debt dynamics as the people of Britain continue to be bombarded with propaganda in respect of the unfolding Inflationary Depression that the country has been immersed in since at least early 2008. In terms of politics, propaganda takes the form of declarations for ever greater needs for economic austerity by the Coalition government whilst the Labour party as usual takes the opposite line, when the reality is that there has been no real net economic austerity in Britain, as there has been no cut in government spending and hence the deficit continues to persist let alone any actual repayment of debt that continues to expand by about £120 billion per year.
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