Category: Quantitative Easing
The analysis published under this category are as follows.Saturday, October 20, 2012
Socialist Global Central Bank Crime Syndicate QE-4-Ever Inflation Theft / News_Letter / Quantitative Easing
The Market Oracle NewsletterOctober 1st , 2012 Issue #13 Vol. 6
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Wednesday, October 17, 2012
QE3 Extreme Symptoms and Hidden Menace, Incredibly Gold Bullish / Stock-Markets / Quantitative Easing
Some competent analysts claim the United States and Western nations are stuck in the eye of the hurricane. Maybe so, but the internal stresses are so great that they will move beyond the eye into a zone of clearly apparent destruction soon. Some aware analysts believe the bond monetization plans will lift the financial markets. Maybe so, but the ensuing and continuing damage to the economies is profound from rising cost structures. Some awakening analysts no longer look to the USFed as a source of solutions. They see the central bank as increasingly desperate, pushing the same levers that accomplished nothing in the past.
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Monday, October 15, 2012
Money Printing is the Only Thing Keeping the System Afloat / Stock-Markets / Quantitative Easing
Last Monday GoldMoney published my article showing the frightening growth in money-quantities for the US dollar. In that article I stated that the hyperbolic rate of increase, if the established trend is maintained, is now running at over $300bn monthly, while the Federal Reserve is officially expanding money at only $85bn.
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Friday, October 05, 2012
The Quantifornication of U.S. Housing Market, Banks and Economy / Economics / Quantitative Easing
Overheated US housing prices started dropping in 2006. Homeowners were going underwater (they owed more than the house was worth) and many had questionable credit - "fog the mirror loans" were common, if you breathed you got a loan. *Banks sold these mortgages to agencies like Fannie Mae and Freddie Mac. They bundled the mortgages with other loans bearing similar interest rates and then sold them as Mortgage-backed securities (MBS), so called because their value was backed or secured by the value of the underlying mortgages.
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Thursday, October 04, 2012
U.S. Fed QE Infinity, What is it All about? / Interest-Rates / Quantitative Easing
QE3, the Federal Reserve’s third round of quantitative easing, is so open-ended that it is being called QE Infinity.
Doubts about its effectiveness are surfacing even on Wall Street. The Financial Times reports:
Among the trading rooms and floors of Connecticut and Mayfair [in London], supposedly sophisticated money managers are raising big questions about QE3 — and whether, this time around, the Fed is not risking more than it can deliver.
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Thursday, October 04, 2012
Stock Markets Continue to Leveitate as Money Printing Trumps Fundamentals / Stock-Markets / Quantitative Easing
Stock markets around the world continue to levitate despite the fact that the fundamentals behind the global economy continue to deteriorate.
U.S. second quarter GDP was significantly revised downward last week from the previously reported 1.7%, to just 1.3%. The paltry 1.3% reading on GDP followed a first quarter print that was already an anemic 2%. Also reported last week was the worsening state of consumer’s income. Their take home pay (after taxes and inflation are considered) dropped 0.3% in August, as their savings rate fell to just 3.7%, from 4.1% during the prior month. Another worrisome report showed manufacturing activity in the Chicago region contracted for the first time in three years in the month of September, according to the MNI Chicago Report released on Friday.
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Wednesday, October 03, 2012
Why A Fed President Just Suggested Doubling QE3 / Interest-Rates / Quantitative Easing
Chicago Federal Reserve Bank President Charles Evans was interviewed on CNBC on Monday, and he indicated that he was in favor of continuing asset purchases at a rate of $85 billion per month all the way through 2013. If approved by the rest of the Fed, this would have the effect of about doubling the size of "QE3", or Quantitative Easing Three, the massive Federal Reserve monetary creation and market intervention program announced only three weeks ago.
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Monday, October 01, 2012
The Quantum of Quantitative Easing Inflation is Coming! / News_Letter / Quantitative Easing
The Market Oracle NewsletterJuly 20th , 2012 Issue #12 Vol. 6
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Monday, October 01, 2012
Socialist Global Central Bank Crime Syndicate QE-4-Ever Inflation Theft / Stock-Markets / Quantitative Easing
It is barely four weeks since the European arm of the global central bank crime syndicate (ECB) announced its policy of wanting to print unlimited euro's to monetize bankrupting PIIGS debts that was welcomed by the markets who's participants would be lining up to offload PIIGS bonds bought at far higher interest rates (lower prices) onto predominantly German tax payers because it is Germany that backs the Euro as a sound currency rather than the Greek or Spanish versions of the Zimbabwean Dollar.
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Wednesday, September 26, 2012
Bernanke Put: Beware of Easy Money / Stock-Markets / Quantitative Easing
Central bankers around the world may be providing a backstop to the financial markets in much the same way Greenspan did during the “Goldilocks” years, but when the short-term euphoria wears off, will the negative repercussions be even more severe? Bernanke’s Federal Reserve (Fed) appears to specifically target equity market appreciation as part of its offensive in bringing down the unemployment rate; expectations are high: every time the market sells off, the Fed might simply print more money. We fear central bankers have overstepped their reach, and the implications of their actions may be much worse than the anticipated benefits.
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Tuesday, September 25, 2012
Betting on Bankers, What if the Fed has Got it All Wrong? / Stock-Markets / Quantitative Easing
As long-time readers know, I get a large volume of research sent my way. I can't get to all of it every week, but I really do try. And today's Outside the Box, from a new (to me) source, hooked me from the first few paragraphs.
Correlation is not causation, as we all know. That brings us to the Fed, where many market observers are seeing causation when there might be other reasons for stock market movements. What if the victory lap Bernanke has taken due to stock market results is perhaps a little too early or out of place entirely? And what might that potentially say about future market performance and correlations?
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Tuesday, September 25, 2012
Bernanke Declares War on Canadian Economy / Politics / Quantitative Easing
The financial world cheered when Bernanke announced QE3 until it works (which is essentially forever, because it never will work).
Bruce Stewart, writing for the Winnipeg Free Press, is one of few who figured out QE for what it really is: A Beggar-Thy-Neighbor competitive currency debasement policy hoping to sink the US dollar.
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Sunday, September 23, 2012
Q.E. to Infinity Unintended Consequences / Interest-Rates / Quantitative Easing
There is an intense debate going on in the first-class cabin of Economics Airlines about the direction in which our plane should be pointed. And while those of us back in the cheap seats don't get to help decide, knowing where we will land is of intense interest to all of us. This week we listen in on the debate, in the form of speeches and academic postings passed back from first class for the rest of us to read. This type of debate also occurred when Greenspan held rates down at an abnormally low level for a very long time. The unintended consequence of that move was a housing and debt/leverage bubble. Are there potential unintended consequences to Bernanke's current monetary policy, which some are calling Quantitative Easing Infinity? I suggest you put up your tray tables and fasten your seatbelts – the ride could get bumpy as we explore QE Infinity: Unintended Consequences.
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Sunday, September 23, 2012
QE Shell Game, the Fed's Latest Scam / Politics / Quantitative Easing
Saturday, September 22, 2012
Why QE3 Won’t Jumpstart the Economy and What Would / Economics / Quantitative Easing
The economy could use a good dose of “aggregate demand”—new spending money in the pockets of consumers—but QE3 won’t do it. Neither will it trigger the dreaded hyperinflation. In fact, it won’t do much at all. There are better alternatives.
The Fed’s announcement on September 13, 2012, that it was embarking on a third round of quantitative easing has brought the “sound money” crew out in force, pumping out articles with frighting titles such as “QE3 Will Unleash’ Economic Horror’ On The Human Race.” The Fed calls QE an asset swap, swapping Fed-created dollars for other assets on the banks’ balance sheets. But critics call it “reckless money printing” and say it will inevitably produce hyperinflation. Too much money will be chasing too few goods, forcing prices up and the value of the dollar down.
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Friday, September 21, 2012
QE-3 Hyperventilating Hyperbole on Hyperinflation / Stock-Markets / Quantitative Easing
Wow! The hyperventilating hyperbole on hyperinflation to be brought about by QE-3 was near overwhelming. From some of what we read, QE-3 is to cure all the economic woes of the U.S., cause hyperinflation, crash the U.S. dollar, prevent male patten baldness, push $Gold to $2,400, and cause the death of our favorite pet. Oh, and the perennial favorite fantasy trotted out on a regular basis is Silver going back to $50. Could QE-3 really be all those things, or is it really Damp Squib One?
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Thursday, September 20, 2012
Money Printing Stimulus, Is this the world’s most important debate? / Economics / Quantitative Easing
Last week the Bernanke Fed recommenced its interventionist tendencies and announced QE3. The world’s most important central bank will be able to buy its previously targeted range of securities to the tune of $40bn a month.
The Fed probably felt newly empowered by the ECB’s recent promises to action, and the deliberately awe inspiring words of ‘Super’ Mario Draghi. The world’s most systemically important central banks are building their balance sheets and with it an even bigger hand in the world’s most important financial game of poker.
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Thursday, September 20, 2012
How to Game the Fed QE3 / Stock-Markets / Quantitative Easing
Peter Krauth writes: Everything changed on September 13. It's the day Ben Bernanke promised not to take away the punch bowl.
Last Thursday, Helicopter Ben announced that the Fed would start buying $40 billion in mortgage-backed securities -- for as long as it takes. He also announced the Fed will keep rates between 0-0.25%, until mid-2015.
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Thursday, September 20, 2012
U.S. Treasury Debt Powder Kegs and Money Printing Photo Ops / Stock-Markets / Quantitative Easing
The following is a portion of an interview I conducted with Dr. Janice Dorn, as found in the December 2006 issue of The Investor’s Mind: Mindgames. Dr. Dorn has not only traded the futures markets for the past 2 decades, but has coached hundreds of traders in the futures markets. She holds a PhD in neuroanatomy, and is an M.D., certified by the American Board of Psychiatry and Neurology. I am confident you will find these comments even more pertinent today, than when they were originally read in December 2006.
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Wednesday, September 19, 2012
The Trouble with Printing Money, QE3 Reflects Colossal Failure to Address Our Predicament / Interest-Rates / Quantitative Easing
For a while now, I have been expecting a coordinated, global central bank action that would seek to print more money out of thin air, or "QE" (quantitative easing), as it is now called. Now we have two of the most important central banks, that of the U.S. (the Federal Reserve) and in Europe (the ECB) having committed to open-ended, limitless QE.
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