Category: Quantitative Easing
The analysis published under this category are as follows.Thursday, July 07, 2011
A Glimpse into America' a Money Printing Future 2015, Bernanke's QE17 / Interest-Rates / Quantitative Easing
Martin Hutchinson writes: At the end of last month, the U.S. Federal Reserve brought down the curtain on its $600 billion "quantitative easing" initiative, a U.S. Treasury-bond-purchase program that investors liked to refer to as "QE2."
Fed Chairman Ben S. Bernanke has indicated that he does not intend to carry out a follow-up "QE3" program.
Read full article... Read full article...
Wednesday, June 29, 2011
Investors Around The World Monitoring Expiration Of QE2 / Stock-Markets / Quantitative Easing
We are witnessing an important watershed in world history with the unwinding of QE2. Every citizen no matter where, has a ready camera eye on the world, carried in his smart phone case. Even more so does the internet provide the anvil for major nations to forge economic strategies. "Swords are being hammered into cybershares."
Read full article... Read full article...
Tuesday, June 28, 2011
Can The Fed Stop Quantitative Easing? / Interest-Rates / Quantitative Easing
If the Fed stops QE, confidence in the US dollar would rise. Money would flow into US investments, both supporting the US stock market and helping to finance the large US budget deficit. Gold and silver prices would decline. Negative dollar expectations would be squeezed out of oil and grain prices, although drought, flood, and supply factors would continue to impact grain prices and the administration’s wars can impact oil prices.
Read full article... Read full article...
Wednesday, June 22, 2011
To QE or Not To QE? That Is The Question / Stock-Markets / Quantitative Easing
While the media is customarily thought to disseminate news, there is a far more intriguing purpose in the role of the relationship between the national mindset and the intended purposes of economic establishment.
It has ever been thus, going back to Shakespeare's Salanio character in "Merchant of Venice." Upon meeting colleagues, the characters would greet each other with the question: "Now, what news on the Rialto?"
Read full article... Read full article...
Wednesday, June 22, 2011
Why Fed QE3 Money Printing is a Done Deal / Interest-Rates / Quantitative Easing
Keith Fitz-Gerald writes: When U.S. central bank policymakers conclude their two-day meeting today (Wednesday), there's really only one question investors want an answer to: What's the U.S. Federal Reserve plan for QE3?
Let me answer that for you: QE3 is a done deal - although Fed Chairman Ben Bernanke & Co. might well give it another name.
Read full article... Read full article...
Monday, June 20, 2011
Fiscal Manipulation, the Intermarriage of News and Economic Policy / Interest-Rates / Quantitative Easing
To Gold Stock Trades Editor Jeb Handwerger, there is an intriguing purpose in the relationship between the national mindset and the intended purposes of economic establishment. "Are we being programmed for QE3?," he ponders in this Gold Report exclusive, ultimately proclaiming, "It's sowing time—not selling time."
While the media is customarily thought to disseminate news, there is a far more intriguing purpose in the role of the relationship between the national mindset and the intended purposes of economic establishment.
Read full article... Read full article...
Monday, June 13, 2011
Central Bankruptcy, Why QE3 is Inevitable / Interest-Rates / Quantitative Easing
As the U.S. economy seemingly limps out of the Great Recession most analysts now assume that the Federal Reserve will soon join the tide of other central banks and bring an end to the current era of unprecedented monetary expansion. Markets expect that Fed will begin withdrawing liquidity this summer, not too long after this latest round of the quantitative easing comes to an end. But this is simply a delusion.
Read full article... Read full article...
Saturday, June 11, 2011
Revisiting Bernanke’s QE2 October 2010 Speech / Interest-Rates / Quantitative Easing
The Fed will complete the QE2 purchase plan of $600 billion securities as of June 2011, which is not too far ahead. But there is no assurance that self-sustained economic growth adequate to bring down the unemployment and stabilize the housing market will occur. In fact, the nature of recent economic reports inclusive of the ISM manufacturing survey, auto sales, retail sales excluding auto and gasoline, soft payroll growth, elevated unemployment rate, decelerating factory production, and continued slump in the housing market suggest that economy still needs watching over and support after nearly eight quarters of economic growth.
Read full article... Read full article...
Thursday, June 09, 2011
QE2 Unmitigated Failure – The Bernanke Chronicles / Economics / Quantitative Easing
Our self proclaimed "expert" on the Great Depression, Ben Bernanke, seems to be feeling the pressure. His theories worked so well when he modeled them in his posh corner office at Princeton. He could saunter down the hallway and get his buddy Krugman to confirm his belief that the Federal Reserve was just too darn restrictive between 1929 and 1932, resulting in the first Great Depression. I wonder if there will be a future Federal Reserve Chairman, 80 years from now, studying how the worst Federal Reserve Chairman in history (not an easy feat) created the Greatest Depression that finally put an end to the Great American Military Empire. Bernanke spent half of his speech earlier this week trying to convince himself and the rest of the world that his extremist monetary policy of keeping interest rates at 0% for the last two years, printing money at an astounding rate, and purposely trying to devalue the US currency, had absolutely nothing to do with the surge in oil and food prices in the last year. Based on his scribbling since November of last year, it seems that Ben is trying to win his own Nobel Prize - for fiction.Read full article... Read full article...
Wednesday, June 08, 2011
QE2 Has Failed, Time To Move On / Interest-Rates / Quantitative Easing
Was Friday's job's report the final nail in the coffin for QE2?
It should be. After all, how is Fed chairman Ben Bernanke going to convince people that his bond purchasing program is working when payrolls rose by a measly 54,000 and the unemployment rate climbed back to 9.1 percent? It'll take a lot more than fast-talk to sell that load of horse-manure. The truth is, QE2 has been a total bust and the BLS's report is just the icing on the cake. Just look at the data; it's as grim as anything we've seen in the last two years. Here's a clip from an article titled "Disastrous US jobs report points to deepening slump" that will give the reader some idea of how bad things really are:
Tuesday, June 07, 2011
What May Trigger QE3? / Interest-Rates / Quantitative Easing
Fed President Plosser, a voting member of the FOMC, indicated in his speech in Helsinki today that the "hurdle for QE3" is high. Chairman Bernanke has voiced a similar opinion. There is considerable ink that has been devoted to the soft patch the U.S economy is current experiencing which almost always includes mention of the Fed's view that justification for QE3 is more stringent than QE2. We have been mulling this thought around for a few days and here is the checklist we think is a useful guide to what may trigger QE3.
Read full article... Read full article...
Monday, May 30, 2011
The Fed Is Not Printing Money The Fed Is Not Printing Money / Politics / Quantitative Easing
I know what you've heard from "reliable sources" on the Internet, but it's hogwash. In fact, there is not one economist--to my knowledge--who would characterize the Fed's Quantitative Easing program (QE2) as a money printing operation.
What the Fed's doing is buying a bunch of long-term bonds (US Treasuries) in exchange for bank reserves. What this does is reduce the average maturity of the debt held by the public, which reduces long-term interest rates.
Friday, May 27, 2011
Endless Money Printing Quantitative Easing / Interest-Rates / Quantitative Easing
Over the past few weeks, we have spent a lot of time digging into the macro data pertaining to the world's developed economies. After careful analysis, our research has convinced us that quantitative easing (money creation out of thin air) will not end anytime soon.
Read full article... Read full article...
Thursday, May 26, 2011
Economic Green Shoots, Exit Strategy, No QE3 Money Printing / Interest-Rates / Quantitative Easing
It is not clear whether the American financial community has the ability to observe and conclude that the US Federal Reserve is adrift and relies upon deception as policy in revealing its directions. Its position is to hold steady, inflate to oblivion, support financial markets in heavy volume secretly, and lie about leaving its trapped policy corner. The USFed is a propaganda machine that deals with ruses as a substitute for transparent policy discussion in the public forum. Two years ago the ruse disseminated widely was the Green Shoots of an economic recovery that had no basis at all.
Read full article... Read full article...
Friday, May 20, 2011
QE End, Training Wheels Off, Crash Helmets On / Economics / Quantitative Easing
Based on many pronouncements by economic policy makers, reams of articles by the top financial journalists and near continuous discussion on the financial news channels, it appears that the quantitative easing juggernaut that has steamed the high seas of macroeconomics for the last three years is finally pulling into port...supposedly for the last time. According to the dominant narrative, QEI and QEII helped stabilize the economy during the Great Recession and now the Federal Reserve is ready to take the training wheels off. If so, the economy may need a helmet because there is virtually no chance that it can avoid major contractions without central banking support.
Read full article... Read full article...
Tuesday, May 03, 2011
Another Sign QE2 is Undermining the Economic Recovery / Stock-Markets / Quantitative Easing
A rather eye-opening headline appearing in the financial press is worth discussing here because it’s symptomatic of a bigger problem plaguing the economy. This problem will only increase in the coming months and there’s ample reason for believing it will eventually undermine the cyclical bull market in stocks. The headline reads, “Kimberly-Clark to hike prices after profit falls.”
Read full article... Read full article...
Thursday, April 28, 2011
Did Ben Bernanke Hint at QE3 During Fed Press Conference? / Interest-Rates / Quantitative Easing
Keith Fitz-Gerald writes: While the first press conference ever held by U.S. Federal Reserve Chairman Ben Bernanke grabbed most of the headlines this afternoon (Wednesday), it was the post-meeting statement issued earlier in the day that grabbed my attention.
In particular, I zeroed in on the part about the policymaking Federal Open Market Committee (FOMC) regularly reviewing "the size and composition of its securities holdings in light of incoming information and is prepared to adjust those holdings as needed to best foster maximum employment and price stability."
Read full article... Read full article...
Thursday, April 28, 2011
To QE3 or not QE3? That is the Question / Stock-Markets / Quantitative Easing
QE3 or not QE3?
That is the question. Whether 'tis stupider in the US to erode its buying power with outrageous inflation or to take loans from overseas nations and, by defaulting, to end them? Ben lies: we're sheep; No more; and by being sheep we suffer the heart-ache and the thousand pricing shocks unmeasured by the CPI, 'tis a consumer tax, despite what you had wish'd. Ben lies; we're sheep: living a dying dream: Aye, there's the rub; when fleecing sheep what jobs may come when we have scuttled all their buying power?
Wednesday, April 27, 2011
Financial Press Talking Heads Focus on Bernanke's QE2 Money Printing Speech / Interest-Rates / Quantitative Easing
The mainstream press talking heads that repeatedly rely on near always wrong ivory tower academics that is further regurgitated at length by the BlogosFear will today be focused on the latest utterances from Fed Chairman, Ben Bernanke, as if by magic he is going to pull new rabbits out of the hat that will surprise the financial markets with rumours of the early end of QE2.
Read full article... Read full article...
Tuesday, April 26, 2011
QE2 and the Fate of the U.S. Economy / Economics / Quantitative Easing
By David Galland, Casey Research : In the last few weeks, I’ve become particularly “attentive” to the intentions of Fed policy makers following the scheduled June end date for QE2.
This is no small matter; an actual shift in Fed policy – as opposed to the smoke and mirrors sort – could temporarily play havoc on equities and commodities markets alike. How could it be otherwise, when under QE2 the Fed has been writing checks to the Treasury in amounts of upwards of $100 billion a month since last November?
Read full article... Read full article...