Category: Quantitative Easing
The analysis published under this category are as follows.
Tuesday, August 20, 2013
Fed QE Taper Talk, Act 2 / Interest-Rates / Quantitative Easing
By: Axel_Merk
While the Fed’s taper talk has been tapered and then un-tapered, the market may now be tapering the Fed rather than vice versa. Let’s assess Act 2 of the taper talk and the implications for the markets, including the dollar and gold.
Monday, August 19, 2013
The Fed Can’t Afford to Taper QE / Interest-Rates / Quantitative Easing
By: John_Handbury
The Federal Reserve Bank’s balance sheet looked pretty healthy in May this year. On the asset side of the balance sheet is the large amount of paper that the Fed has bought to supposedly stimulate the economy. This consists mostly of treasury bonds and notes and mortgage-back securities of a value approaching $3 trillion.
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Thursday, August 08, 2013
What a QE Taper Means for Markets and the Next Fed Chair / Stock-Markets / Quantitative Easing
By: Money_Morning
Garrett Baldwin writes: On Tuesday, Federal Reserve Bank of Chicago President Charles Evans announced that he wouldn't be surprised if the central bank begins to taper its $85 billion monthly bond-buying program in September.
Evans is the third official this week to signal a QE taper. Richard Fisher, president of the Dallas Fed, and Dennis Lockhart, president of the Atlanta Fed, parroted Evans' sentiment.
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Wednesday, August 07, 2013
The Federal Reserve Relies on a Flawed Economic Model / Interest-Rates / Quantitative Easing
By: Casey_Research
By Lacy H. Hunt, Ph.D., Economist
In May 22 testimony to the Joint Economic Committee of Congress, Fed Chairman Ben Bernanke issued another of many similar positive interpretations of central bank policy. Yet again, he continued to argue that quantitative easing has decreased long-term interest rates and produced other benefits. He called economic growth "moderate," a term that he has often used without acknowledging that the Fed's forecasts have repeatedly been far above the mark. Within less than two months—or by the time of the July FOMC meeting—the Fed had downgraded the economic growth to "modest," tacitly acknowledging that program of open-ended $85 billion purchases of government and federal agency security purchases had failed to boost economic activity.
Friday, August 02, 2013
Fed Says “No Way” to QE Tapering / Interest-Rates / Quantitative Easing
By: InvestmentContrarian
George Leong writes: At the Federal Reserve meeting this past Wednesday, Chairman Ben Bernanke confirmed the bond buying would continue as economic growth was only modest and jobs remain an issue.
In other words, the Federal Reserve is planning to keep the money-printing press in full operation.
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Friday, August 02, 2013
Why QE Money Printing Hasn't Stimulated the U.S. Economy / Economics / Quantitative Easing
By: Clif_Droke
After the Fed's latest 2-day policy meeting it announced on Wednesday that it would continue its $85 billion per month asset purchase program. The major indices fluctuated from positive to negative throughout the day, as is typical of a Fed meeting day, before closing basically unchanged.
Thursday, August 01, 2013
FOMC Meeting See's Fed Backtrack on QE Taper Talk / Interest-Rates / Quantitative Easing
By: Money_Morning
Gary Gately writes: The Federal Open Market Committee (FOMC) meeting ended today (Wednesday) with word that the Fed plans to the stay the course on QE for now, backtracking from earlier hints it might begin tapering this fall.
"For all those looking for clear guidance on when quantitative easing will end, well, you will have to wait a little longer," Joel Naroff, president and chief economist at Naroff Economic Advisors Inc., wrote in a research note. "Indeed, there may have been some walking backwards today."
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Thursday, August 01, 2013
Bernanke’s Gift - Tempering the Taper Tantrum / Interest-Rates / Quantitative Easing
By: Michael_J_Kosares
WASHINGTON (MarketWatch) — The Federal Reserve on Wednesday slightly downgraded its economic outlook but gave no hint about its plans for its $85 billion-a-month asset purchase program. The statement released after a meeting of the Fed’s policy making committee said that the economy was expanding at a “modest” pace, a change from the “moderate” pace seen in June. The Fed also noted that the rise in mortgage rates was a concern. It also said that persistently low inflation was a risk. There was only one dissent, by Kansas City Fed President Esther George.
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Wednesday, July 31, 2013
Bernanke the Candyman as Detroit Declares Bankruptcy / Interest-Rates / Quantitative Easing
By: John_Mauldin
By Grant Williams
Who can take tomorrow
Dip it in a dream
Separate the sorrow
And collect up all the cream?
The candyman, the candyman can
The candyman can 'cause he mixes it with love
And makes the world taste good.
And the world tastes good 'cause the candyman thinks it should.
– "The Candyman", Willy Wonka and the Chocolate Factory
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Tuesday, July 30, 2013
What to Expect From the Fed FOMC Meeting: Looking for QE Clues / Interest-Rates / Quantitative Easing
By: Money_Morning
Gary Gately writes: Don't expect a definitive answer from this week's Federal Open Market Committee (FOMC) meeting on when the Fed will begin tapering its massive quantitative easing program.
Instead, the focus will be on the FOMC's statement, which will be scoured for clues about when scaling back QE3 could begin.
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Saturday, July 27, 2013
Despite Declining Deficit, Foreigners Aren’t Bailing Us Out, So the Fed Will Keep QE Going / Interest-Rates / Quantitative Easing
By: Casey_Research
By Bud Conrad, Chief Economist
The basic imbalance driving our economy is the government deficit, which spun out of control as a result of the Credit Crisis of 2008/9. But the sequester, improving tax base, lower interest rate, and elimination of stimulus spending have caused the big government deficit, while still extreme, to drop to half its previously nosebleed levels.
Monday, July 22, 2013
The End of QE - What Ben Bernanke Is Really Saying / Interest-Rates / Quantitative Easing
By: Raul_I_Meijer
Ever wonder what Bernanke is saying? Well, it boils down to this: at the same time that Jimmy Carter says the US doesn't have a functioning democracy, Ben Bernanke says the US doesn't have a functioning economy.
Unfortunately, people understand what Carter says, though they may not agree with him, but they do not understand what Bernanke says, and that has nothing to do with agreeing with him or not. Moe likely it has something to do with the illusionary oracle qualities once attributed to his predecessor Alan Greenspan, whenever no-one had a clue what he was saying. In reality, Ben Bernanke will turn out to be the biggest scourge on American society since the same Alan Greenspan, but that's not how he's seen; instead, just like Greenspan, he's idolized. What's wrong with this picture is that Bernanke's words and actions are interpreted in the press exclusively by people who live in the part of society that stands to profit from them, let's call it "the financial world". That they are but a very small part of society easily gets lost in translation.
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Monday, July 22, 2013
Dangerous Excess - QE Fiscal Easing Past And Present / Interest-Rates / Quantitative Easing
By: Andrew_McKillop
THE ASSIGNAT BUBBLE AND QE
One of our problems is easy to state but very dramatic. There are no real precedents for what is called Quantitative Easing as it is practiced since 2008. Central bankers such as Bernanke, Draghi, Carney and their partners in almost all other countries are engaged in The Great Experiment.
Unfortunately, based on all past history, the chance of it not ending badly or very badly, is minimal.
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Thursday, July 18, 2013
Bernanke Testimony Sends Mixed Signals on QE3 / Interest-Rates / Quantitative Easing
By: Money_Morning
Gary Gately writes: Call it Ben Bernanke's Alan Greenspan moment.
As his predecessor as Federal Reserve chairman had often done, Bernanke sent decidedly mixed and unclear signals today (Wednesday) in testimony before Congress.
The Bernanke testimony, in prepared remarks delivered to the House Financial Services Committee, provided nothing close to a definitive answer on whether the Fed would scale back quantitative easing in September.
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Wednesday, July 10, 2013
Why QE3 Hasn’t Triggered Inflation – So Far / Economics / Quantitative Easing
By: Money_Morning
David Zeiler writes: When you pump massive amounts of money into an economy, as the U.S. Federal Reserve has done with QE1 through QE3, you're supposed to get some measure of inflation.
And yet despite some $2.3 trillion of quantitative easing since 2008, the core inflation rate has actually fallen over the past year from about 2.25% to 1.7% as of May.
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