Category: Quantitative Easing
The analysis published under this category are as follows.
Friday, August 01, 2014
USD FMQ Carries on Growing Ddespite Tapering / Stock-Markets / Quantitative Easing
By: Alasdair_Macleod
June's FMQ components have now been released by the St Louis Fed, and it stands at a record $13.132 trillion. As can be seen in the chart above, it is $5.48 trillion more than an extension of the pre-Lehman crisis exponential growth trend. At this point readers not familiar with the construction of FMQ and its purpose may wish to refer to the original paper, here. Read full article... Read full article...
Thursday, July 10, 2014
QE Asset Bubbles Out of Gas / Interest-Rates / Quantitative Easing
By: Michael_Pento
I've written exhaustively about the real purpose behind the Fed's quantitative easing strategy. So one more time for those who still don't get it; the primary goal of QE is to bolster banks' balance sheets through the process of re-inflating equity and real estate prices. If investors look back at the history of QE they will be able to clearly see what happens when the Fed steps on the monetary gas; and also what occurs once it takes the foot off the pedal.
Tuesday, June 24, 2014
QE And CDS Are Weapons Of Mass Deception / Interest-Rates / Quantitative Easing
By: Raul_I_Meijer
The age of financial innnovations found such an exalted high priest in Alan Greenspan that in his days as Fed governor he couldn’t stop talking about the dangers of regulating them, even though that was in his job description, and even though he had far too little detailed knowledge of them. His sidekicks over at the Treasury, Bob Rubin and Larry Summers, made sure their friends at Citi and JPMorgan had nothing to fear from the US government in this regard either, just as Glass-Steagall was repealed.
Thursday, June 19, 2014
Five Reasons For Some FED Action / Interest-Rates / Quantitative Easing
By: Submissions
Sant Manukyan writes:
QE-1? Have to admit it did work pretty well. Unlocked the credit markets, gave a boost to the asset prices and more importantly pushed the rates even lower. QE-2? Depends, but if the intention was to keep the long rates down yes it did work. QE-3? I don’t think it really did work. Not only QE is not “printing money” and “reserves can not be lend” it is not intended to create inflation as well. And before the next recession strikes, been 5 years since the end of the Great Recession, the FED better lock some of it’s tools up into the tool box so that it can them out later. Any reason for tightening? Sure, here they are:
Friday, June 06, 2014
The Great QE Bubble Lives On / Interest-Rates / Quantitative Easing
By: Raul_I_Meijer
This is one of those days where I wonder what I’m going to say about this one. It’s all too convoluted six ways to Sunday. Yeah, Mario Draghi delivered for markets and investors, and stocks rise a bit more. Like they’re not high enough yet, setting records in . One thing he didn’t do is commit to asset backed securities purchases, and so that is now what markets will be demanding from him next time around. Who cares anymore that ABS were the main conduit to blew up the same markets in 2008? Investors are happy, and Jack and Jill are ignorant. The Great QE Bubble lives to see another day. Yay!
Wednesday, June 04, 2014
When Fed Money Printing Runs Wild / Interest-Rates / Quantitative Easing
By: Clif_Droke
Since the advent of the quantitative easing (QE), the Fed’s unprecedented attempt at reversing the impact of the credit crisis, many long-held beliefs and assumptions have been demolished. One of the most sacred assumptions on the part of investors and economists alike is that central bank money printing always eventually leads to inflation. Yet six years have passed since the Fed first embarked on its historic attempt at reversing the effects of the credit crash and alas, no signs of inflation are on the horizon. Read full article... Read full article...
Tuesday, June 03, 2014
Where $1 of QE Money Printing Goes: The Untold Story / Interest-Rates / Quantitative Easing
By: F_F_Wiley
“We don’t understand fully how large-scale asset purchase programs work to ease financial market conditions.” - New York Fed President Bill Dudley
“I don’t think there’s any doubt that quantitative easing enabled the rich and the quick. It was a massive gift… It was deliberate in the sense that we were hoping to create the wealth effect… I hope that we do indeed succeed in being able to say in the end the wealth effect was more evenly distributed. I doubt it.” - Dallas Fed President Richard Fisher
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Thursday, May 22, 2014
Don’t be Fooled by QE Taper Talk / Interest-Rates / Quantitative Easing
By: Steve_H_Hanke
Since last June, most thought the U.S. Federal Reserve’s so-called taper was just around the corner. Well, the Fed’s large-scale asset purchasers did finally begin to take action, but they did so later than most anticipated. It now appears that the door will close on the Fed’s massive asset purchase program late this year. With this in mind, talk has turned to another aspect of the taper – just when will the Fed start to increase the federal funds interest rate? It probably won’t be anytime soon. Yes, the massive distortions created by the Fed’s interest rate manipulations (read: carry trade, among others) will be with us for longer than most anticipate. Why?
Tuesday, May 13, 2014
The Fed's Economic 'Growth Buying' Scheme Is Failing / Economics / Quantitative Easing
By: Money_Morning
Shah Gilani writes: The numbers are in. And they are ugly...
Based on preliminary first-quarter data, U.S. GDP (gross domestic product) growth is 0.1%.
That's not much.
But then again what do you expect for $3.4 trillion dollars of Federal Reserve spending to boost the economy?
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Thursday, April 24, 2014
The Central Banks Have Realized Their Worst Nightmares Are Approaching / Interest-Rates / Quantitative Easing
By: Graham_Summers
Central Bankers will never openly admit that they or their policies have failed. Moreover, they do not rush into sudden tightening (more on this in a moment). But one can begin to notice subtle changes in their language and actions that indicate they have noticed what’s happening in Japan (the failure of the BoJ’s “shock and awe” QE program to generate growth).
Nowhere is this more clear than at the US’s Federal Reserve or Fed. Indeed, starting in August 2013, various Fed officials began questioning the efficacy of QE.
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Wednesday, April 23, 2014
QE Is A Fraud Perpetrated By Made Men / Interest-Rates / Quantitative Easing
By: Raul_I_Meijer
A lot of words are being spent again these days on deflation and the QE measures that are supposed to “cure” it. Paul Krugman, who when it comes to stimulus is a hammer seeing nails only, now has it in for Sweden’s central bank, which he labels monetary sadists for not opening the spigots. But it’s all a hugely deceptive false flag; it’s not an issue of whether you launch QE or not. There’s a third, and much more valid, way of looking at this.
Wednesday, April 23, 2014
G-20 and the US Tell the Bank of Japan to End Quantitative Easing / Interest-Rates / Quantitative Easing
By: Mike_Whitney
It looks like QE is going to end with a whimper instead of a bang.The bigwigs in the G-20 have put the kibosh on Japan’s money printing extravaganza. While most analysts expect the Bank of Japan (BoJ) to announce more “easing” in the days ahead to counter weakening economic data and droopy stock prices; it’s not going to happen. Why? Because the big boys have told the BoJ to knock it the hell off, that’s why? Here’s the scoop from the Japan Times:
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Wednesday, April 16, 2014
Glaring Q.E. Failure Spotted - Money Velocity Is Falling Rapidly / Interest-Rates / Quantitative Easing
By: Jim_Willie_CB
Sometimes pictures are far more effective in communicating an important point. They are extremely effective in undermining respect and confidence, when in the cartoon format. A sequence of graphics struck the cognitive circuits recently. Long explanations will not serve well. The US Federal Reserve has been printing money since 2011 to cover USGovt debt securities in a frenetic manner. They have lost control. They call it stimulus, when it is actually the opposite. It does assist the speculators with nearly zero cost money to borrow, but one must be a club member to win loan grants.
Tuesday, April 15, 2014
The Real Purpose Of QE - It’s Not Employment / Interest-Rates / Quantitative Easing
By: Darryl_R_Schoon
Free markets are a function of supply and demand whereas capital markets are a function of credit and debt
The bankers’ ponzi-scheme – which began with the distortion of free markets in 1694 when the Bank of England began issuing debt-based paper banknotes alongside the Royal Mint’s gold and silver coins – is coming to an end.
The bankers’ wildly successful and long-running scheme, dependent on the uneasy equilibrium between credit and debt, has now been irrevocably destabilized. Aggregate levels of debt are now so high that credit—no matter how cheap and available—cannot restore the balance.
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Wednesday, April 02, 2014
Will the ECB Ever Really do QE? / Interest-Rates / Quantitative Easing
By: MahiFX
There is an outside chance that the European Central Bank could upstage the normally all important US Non-Farm Payroll figures due this Friday with an announcement over new stimulus measures to combat potential deflationary pressures.
Last week Bundesbank President Jens Weidmann and ECB executive board member left open the possibility that the central bank could engage in quantitative easing to counter deflationary pressures in the Eurozone.
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Wednesday, March 19, 2014
Bank of England Lights A Fuse Under the Field of Economics / Interest-Rates / Quantitative Easing
By: Raul_I_Meijer
There will be many people who don’t care, there will be many more who don’t understand, and there will be boatloads who refuse to believe it’s true, but it still is. The Bank of England, in one single document, discredited, just at first count, 1) the majority of economics textbooks, 2) vast swaths of the entire field of economics, run as it is by economists educated by those same textbooks, 3) most governments’ economic policies, designed by these economists, 4) much of its own work, also designed by the same economists, 5) Paul Krugman and 6) the “committee” that hands Krugman and his ilk their Not-So-Nobel Prizes.
Thursday, March 13, 2014
QE Stimulus Bubble will Burst / Stock-Markets / Quantitative Easing
By: John_Mauldin
Seth Klarman: Investors Downplaying Risk “Never Turns Out Well”
Today’s Outside the Box is unusual in that it isn’t an original document but rather a summary of a client letter from one of the greatest investors of our generation, Seth Klarman, who is also one of the more reclusive – he rarely speaks in public or grants interviews. He is known for his very deep value investing style and willingness to pursue value where others get very nervous.
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Saturday, February 15, 2014
Watch For A Fed QE Taper Time-out / Interest-Rates / Quantitative Easing
By: Sy_Harding
Good luck to new Fed Chair Janet Yellen and her expectation that the Fed can continue to taper back its QE stimulus at the current pace until it is completely gone by summer.
The economic reports say it is not going to happen.
In her optimism regarding the economy, expressed in her testimony before Congress this week, Yellen pointed to GDP growth hitting an average annual rate of 3.5% in the last half of last year, compared to only 1.7% in the first half.
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Monday, February 10, 2014
Quantitative Easing The Killer Solution / Stock-Markets / Quantitative Easing
By: Darryl_R_Schoon
On September 20, 2008, the Wall Street Journal wrote: When government officials surveyed the failing American financial system this week, they didn't see only a collapsed investment bank or the surrender of a giant insurance firm. They saw the circulatory system of the U.S. economy—credit markets—starting to fail.
A similar crisis had happened before and bankers understood that if the circulatory system, i.e. credit markets, [continued] to fail, a deflationary collapse in demand even more severe than the Great Depression would happen. In 2008, aggregate levels of debt were far higher than in the 1930s and the consequences would be also.
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Friday, February 07, 2014
How Can Money Printing Exist and be Absent at the Same Time? / Interest-Rates / Quantitative Easing
By: Matt_Machaj
In the past years, the Federal Reserve dropped many inflationary bombs on the markets. Inflationary in the purely monetary sense by supplying money in almost ridiculous amounts, especially base money figures. During this process some commentators believed that the dollar would soon evaporate, that investors will run away in favor of the euro (like the EBC had not been printing euros for their banks), or maybe in favor of the yen (like the Japanese central bank was not that inflationary), or who knows maybe even the yuan. The dollar was supposed to be either dropped by international investors, or killed from within by internal inflationary rates (or possible by those two factors combined together). None of this happened. How are we to explain this if the Fed went almost crazy in monetary creation?