Category: Quantitative Easing
The analysis published under this category are as follows.Thursday, March 19, 2009
The US Fed To Print Money / Interest-Rates / Quantitative Easing
Shock and awe is back in vogue. Yesterday was a landmark day in this crisis with the Fed going all-in (see below) after flip flopping about on the merits of quantitative easing (QE). But now it's all hands to the eletronic printing presses as they clearly don't believe that Geithner's TALF could do the heavy lifting required. Stock rallied as VIX declined back to 40 (the floor of its recent range). But is QE a sign of desperation? It is a serious negative for the EUR/USD , which kissed 1.3536 overnight. Gold of course bounced as the textbooks say this will ultimately be inflationary. But it beats living in caves.Read full article... Read full article...
Wednesday, March 18, 2009
Bernanke Fights Debt Deflation By Printing Money / Interest-Rates / Quantitative Easing
We are in the middle of a grand experiment. Bernanke upped the ante today in his foolish quest to beat deflation. Please consider the FOMC Press Release.Read full article... Read full article...
Sunday, March 15, 2009
Will Global Quantitative Credit Easing Work? / Interest-Rates / Quantitative Easing
The Wall Street Journal: New fears as credit markets tighten
“The credit markets are seizing up again amid new anxieties about the global financial system.
“The fear and uncertainty that sent stocks to 12-year lows is now roiling the market for corporate bonds and loans, which have given back much of the gains they chalked up earlier in the year.
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Sunday, March 15, 2009
Swiss Quantitative Easing, Where are the Safe Havens Now? / Interest-Rates / Quantitative Easing
Where or where have our safe havens gone? Ah yes, there is always the Swiss Franc, right? Not any more!
First, the Swiss National Bank (SNB) sold off its gold reserves. Next, it began cutting interest rates. Later it announced a bias towards “quantitative easing.” Then we learn it's even willing to loosen bank secrecy rules. Now, this headline from MarketWatch:
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Wednesday, March 11, 2009
Printing Money Could Save the UK Economy, But it Will Crush the British Pound / Economics / Quantitative Easing
Eight pence is all that stands between the pound and 1 for 1 parity with the euro.After its short lived recovery, the pound looks to be taking the dreaded “next leg down” and is firmly back in bear market territory. I'd strongly recommend that you defend your wealth against further pound falls, it could be ugly.
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Sunday, March 08, 2009
Bank of England Ignites Quantitative Inflation / News_Letter / Quantitative Easing
March 5th , 2009 Issue #18 Vol. 3Economic Shock and Awe as Interest Rates are cut to 0.5% coupled with £75 Billion conjured out of thin air by Mervyn King Waving his magic "Central Bank Magic Wand". The government through what should be more accurately termed as "Quantitative Inflation" than "Quantative Easing" sanctioned £75 billion in the initial print run which will have a multiplier effect through fractional reserve banking and leverage of anywhere from between X10 to X20 the amount depending on how it filters through the economy, therefore £75 billion increase in the money supply implies the supply of credit should jump by anywhere between £750 billion to £1.5 trillion, but more probably in the region of X10 at £750 billion over the next few months, with expectations of several more doses of "Quantitative Inflation" during 2009 that seeks to devalue the British Pound towards parity to the U.S. Dollar.
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Friday, March 06, 2009
Quantitative Easing Won't Work, Another Nasty Surprise for the Stock Market / Economics / Quantitative Easing
So here we go. Into the great unknown.
The Bank of England has switched the printing presses on. The Government has effectively written itself a dirty great cheque to fund all the extra spending it's going to be doing over the next few years (for more on the details, see Why quantitative easing won't work ).
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