Category: Quantitative Easing
The analysis published under this category are as follows.
Tuesday, July 17, 2012
To QE or Not to QE, Disinflation May Be In the Cards / Stock-Markets / Quantitative Easing
By: Dr_Jeff_Lewis
In its most recent Meeting Minutes for June 19-20, which were released on July 11th, the FOMC gave no indications of another round of stimulus or QEIII. Nevertheless, the monetary policy making committee did reiterate that it would continue its “Operation Twist” program of bond repurchases through the end of this year.
While the immediate reaction to the FOMC Meeting Minutes depressed precious metals prices and drove the U.S. dollar higher, markets corrected afterwards. The price of gold dropped marginally, and the price of silver actually rose by 10 cents per ounce.
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Monday, July 16, 2012
Sorry Stock Market Bulls, The Fed Will Not Engage in More QE. / Stock-Markets / Quantitative Easing
By: Graham_Summers
For well over a year now, I’ve been stating that the Fed will not be able to engage in Quantitative Easing (QE) unless systemic risk hits (think another 2008). My reasons for this are as follows.
First off, the political consequences of hitting “print” (inflation) have made themselves evident to everyone. Indeed, Bernanke was talking about this point as far back as May 2011. The below quote is from a Q&A session with Bernanke during that month.
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Wednesday, June 27, 2012
Global Markets Pine for the Money Printing Press / Stock-Markets / Quantitative Easing
By: Michael_Pento
The global economy continues to falter and the pace of that slowdown is picking up. Recent data showed that German consumer confidence dropped the most since 1998, as Italian confidence dropped to an all-time record low. The level of Spain's non-performing loans reached the highest since 1994. And Chinese consumer loan demand fell to the lowest since 2004, as their PMI continues to drop further below the line of expansion. To round things out, U.S. job openings fell by 325k, the most since September 2008. Meanwhile, the Philadelphia PMI fell the most in nearly a year and despite record low borrowing costs, Existing Home sales fell 1.5% in May.
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Thursday, June 21, 2012
U.S. More Soft Quantitative Easing / Interest-Rates / Quantitative Easing
By: Ian_R_Campbell
Why Read: To get beyond newspaper reporting to a 'what it may mean discussion'.
Featured Article: Shortly after noon Eastern Time yesterday, multiple articles and other media coverage began of the U.S. Federal Reserve announcement that:
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Wednesday, June 13, 2012
Dow Stock Market Bulls and Gold Bugs Wagering big Bets on QE3 / Stock-Markets / Quantitative Easing
By: Gary_Dorsch
"I guess I should warn you. If I turn out to be particularly clear, you've probably misunderstood what I've said," Fed chief "Easy "Al" Greenspan used to say. Recognizing the fact that financial markets place a heavy value on each of their words, former Fed chiefs Arthur Burns and Paul Volcker, were known for blowing smoke, both literally and figuratively, when appearing before Congress, in order to prevent their words from becoming self fulfilling prophesies. They developed a language called "Fed-speak," which is the use of ambiguous and cautious statements that are purposefully made to obscure the meaning of a statement. Greenspan is credited with turning Fed-speak into a "fine-art" form.
Thursday, June 07, 2012
Playing QE III Game of Chicken / Interest-Rates / Quantitative Easing
By: Michael_Pento
Most investors and market pundits continue to misdiagnose the reason behind the worldwide economic malaise. The underlying problem isn't "uncertainty" or any other platitudes Wall Street and politicians like to offer. The truth is that massive sovereign debt defaults (if central banks allow them to be written down honestly) are very deflationary in nature.
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Sunday, June 03, 2012
Sorry Folks, QE 3 Ain’t Coming… Even the Fed Doves Admit It / Interest-Rates / Quantitative Easing
By: Graham_Summers
Once again the US economy is tanking and everyone is talking QE 3. Sorry folks, it ain’t coming. Bernanke said point blank that it was less attractive as a monetary tool as far back as May ‘11!!!
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Saturday, May 26, 2012
Mervyn's Pringle Problem / Interest-Rates / Quantitative Easing
By: Adrian_Ash
Bank to Treasury: Forget credit easing. It's your debt that needs queasing...
UNLIKE PRINGLES tasty potato snacks, quantitative easing doesn't come with a resealable lid. So the famous sales line is only more true for central bankers:
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Friday, April 27, 2012
QE3 is Back On If U.S. Job Reports Are Weak / Interest-Rates / Quantitative Easing
By: Bloomberg
Bill Gross of PIMCO spoke to Bloomberg TV's Trish Regan this afternoon and said that he is doubtful of another round of quantitative easing in June, but "if we see some weak employment reports over the next two months, then QE3 is back on." He also said that there's a risk of a double-dip recession "if liquidity disappears."
Gross went on to say that "euro land is a dysfunctional family...more dysfunctional than Democrats and Republicans in Washington, DC."
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Tuesday, April 24, 2012
Superheroes of Central Banking Destroying Money By Printing it to Excess / Interest-Rates / Quantitative Easing
By: Adrian_Ash
Eccentric yes, but central bankers are a long way from playboy billionaire geniuses with hidden superpowers...
SO CENTRAL BANKERS still can't leap tall buildings in a single bound then.
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Tuesday, April 10, 2012
LTRO 3 likely before any U.S. QE3 / Interest-Rates / Quantitative Easing
By: Tony_Caldaro
In January we reported the following: http://caldaro.wordpress.com/2012/01/30/feds-monetary-base-update/. The FED’s monetary base did make a new high, in February at $2.753 tln, but appears to have ended well short of our $3.0 tln expectation. Since then the monetary base has contracted by nearly $100 bln. The recent high, in OEW terms, may have completed Primary wave III. This would suggest the base in now contracting in a Primary wave IV.
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Sunday, April 08, 2012
The Worst of All Monetary Policies, The Boom That Must End in Depression / Interest-Rates / Quantitative Easing
By: Thorsten_Polleit
I. Monetary Expansion Is Kept Going
In monetary analyses, the balance sheet of the commercial banking sector is typically kept separate from the balance sheet of the US Federal Reserve (Fed). However, combining the two balance sheets might be much more informative.
First, adding up the business volumes of commercial banks and the Fed provides a (much) better insight into the expansion of the monetary sector as a whole over time — especially so in times of the financial and economic "crisis."
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Thursday, March 29, 2012
Bill Gross on Bernanke Rolling Out QE3 in April / Interest-Rates / Quantitative Easing
By: Bloomberg
PIMCO founder and co-CIO Bill Gross spoke with Bloomberg Television's Margaret Brennan today, telling Bloomberg TV that the Fed will likely shift focus to mortgage securities to keep borrowing rates low when Operation Twist ends in June.
Monday, March 26, 2012
Will Helicopter Bernanke Become 'Hurricane Ben'? / Politics / Quantitative Easing
By: Gary_North
This report will deal with quantitative easing (QE). To prepare you for this report, I ask you to watch a short video. It is under 3 minutes. This video is the best thing I have seen on quantitative easing. I wish Bernanke would be this forthright, but I suppose this will never happen.
I will assume from this point on that you have seen the video. If you deal with colleagues who have been confused about what QE really means, forward it to them.
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Tuesday, March 20, 2012
Fed Spreading Financial Cancer That's Killing the Markets and Democratic Capitalism / Interest-Rates / Quantitative Easing
By: Graham_Summers
While the vast majority of commentators look at the market action of the last three months and celebrate, I cannot help but shudder. The reason is that the stock market has been propped up solely by Central Bank and/or Federal Government intervention or the hope of more intervention.
That alone is worrisome as it indicates the stock market no longer cares for economic or financial fundamentals (something that has been clear for several years now).
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Friday, March 16, 2012
The Power of Cheap Money / Stock-Markets / Quantitative Easing
By: Puru_Saxena
The economies of the developed world are sluggish, unemployment is a real menace and debts are out of control (Figure 1). Nonetheless, the world’s stock and commodity markets are defying all logic and advancing in the face of adverse economic conditions.
Today, many economists and strategists are scratching their heads in disbelief and they are struggling to explain the ongoing rally in risky assets. According to the bears, the stock market is in a clear bubble which is ready to pop!
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Wednesday, March 14, 2012
Global Economic Slowdown Paves Way for QE III / Interest-Rates / Quantitative Easing
By: Michael_Pento
Back in early 2011, I was one of the few economists to warn that global GDP growth would slow dramatically in the near future and that the emerging market economies would not be immune from that upcoming contraction. My prediction was based on the premise that the then incipient sovereign debt crisis in the developed world would cause the export-driven BRIC economies to stall. We now know that the Japanese economy is contracting, while Europe's GDP is falling off a cliff. And just last week we received more concrete evidence that emerging market economies are starting to feel the pinch from the developed world's debt crisis.
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Monday, March 12, 2012
Get Ready to be Disappointed With "Sterilized" QE3 / Interest-Rates / Quantitative Easing
By: Ashvin_Pandurangi
The other big "risk on" news last week, aside from a coercive Greek debt restructuring that was completed "successfully" (but will only make Greece's public debts larger and less sustainable), was a rumor that "sterilized QE3" may be launched by the Fed in the near future (as in, at their meeting this week). The original Wall Street Journal piece by Jon Hilsenrath about this "new novel" program contained precious little in the way of details, yet the pundits and the markets obviously love to jump on the irrational bandwagon first and ask questions later. I, for one, am still very skeptical that the Fed is either able or willing to launch further QE this month.
Monday, February 27, 2012
To QE or Not to QE That is The Question / Interest-Rates / Quantitative Easing
By: Tony_Pallotta
The Fed does not like to surprise the markets. They telegraph policy changes well in advance. The coded language of Alan Greenspan has been replaced with plain english and press conferences under Bernanke. The Fed's monetary policy may be questionable but their strategy of being more transparent to the market has improved albeit far from perfect.
Tuesday, February 21, 2012
U.S. Inflation Expectations Forecast No More QE / Economics / Quantitative Easing
By: Tony_Pallotta
If you study the difference between real or inflation adjusted treasury yields as measured by TIPS and nominal or non inflation adjusted yields you come up with inflation expectations. The Fed has specifically referenced this analysis leading up to QE2. In fact the deflationary trend as measured by TIPS in the summer of 2010 was the basis for expanding their balance sheet.
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