Category: Quantitative Easing
The analysis published under this category are as follows.
Sunday, February 13, 2011
Modern Monetary Theory Part II: Money and The Limits of Empire / Interest-Rates / Quantitative Easing
By: Jesse
The limit of the Fed's and Treasury's ability to create money is the value and acceptance of the dollar and the bond in market transactions.The Weimar government never 'ran out of money.' Zimbabwe never 'ran out of money.' And if interest is paid 'in your currency money' you can never fail to service your debt either.
Sunday, February 13, 2011
Modern Monetary Theory: The Sophistry of the US Dollar and Debt Monetization / Interest-Rates / Quantitative Easing
By: Jesse
soph·is·try (s f -str ). n. pl. soph·is·tries. 1. Plausible but fallacious argumentation. 2. A plausible but misleading or fallacious argument.
This is a very well written and important piece by Mr. Cullen Roche at his site Pragmatic Capitalism. It does a good job of capturing the essence of modern monetary theory that I like to think of as post-Nixonian fiat, gaining its realization and fruition in Reaganomics and the Greenspan Fed.
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Wednesday, February 09, 2011
Mythology and Official Nonsense Used to Justify QE2 / Interest-Rates / Quantitative Easing
By: Jim_Willie_CB
With the advent, then the continuation of the Quantitative Easing exercise in hyper-inflation and capital destruction, the US Federal Reserve has perhaps taken its deeply damaged reputation as a central banker and decimated it into shreds. They have lost the respect of the world, more so outside the nation's borders than inside. The financial sector and politicians seem unable to stop showing deep reverence for the post, even licking the Chairman's boots whenever he appears before the USCongress. Recent hints of contempt in WashingtonDC are encouraging. He has not made a single correct forecast on major items.
Monday, January 31, 2011
Quantitative Easing is Nothing New / Interest-Rates / Quantitative Easing
By: Mike_Hewitt
The term 'quantitative easing' is just the newest term to describe the on-going central bank policy of increasing money supply.
Greetings. There has been an increasing amount of news covering the activities of The US Federal Reserve and other central banks. The newest expression being bantered about is "quantitative easing".
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Thursday, January 20, 2011
Why the Fed Creates So Much Money / Interest-Rates / Quantitative Easing
By: Richard_Daughty
One of the reasons behind the Federal Reserve creating so many trillions and trillions of dollars in new money is so the stock market will go up so that more taxes will be collected, and the bond market will go up so that more taxes will be collected (and less interest paid by issuers, too!), and the housing market will go up so that more taxes will be collected, and prices of everything will go up so that more taxes will be collected, so that massive, backbreaking, bankrupting deficit-spending by the government can continue going up.
Tuesday, January 11, 2011
Synonymous Terms for Quantitative Easing / Interest-Rates / Quantitative Easing
By: Richard_Daughty
I was having a leisurely breakfast with the family when I read where Philipp Bagus, writing at Mises Daily newsletter, quotes James Bullard, president of the St. Louis Federal Reserve Bank, as saying, "it's important to defend inflation from the low side as we would on the high side."
Wednesday, January 05, 2011
America's "Money Time Bomb": Quantitative Easing is Inflationary / Economics / Quantitative Easing
By: Bob_Chapman
With Ben Bernanke as our Shepard how can we go wrong? He tells us quantitative easing is not inflationary. He says that with assurance because he knows all the CPI statistics are as realistic as a Madoff Ponzi scheme. He also tells us he doesn’t create money out of thin air. He fails to mention that he does so digitally. His job is to further enrich the elitists who own the Fed and want to create a new world order. Prices are up 6-3/4% across the board as official inflation has only risen 1.2%.
Wednesday, December 22, 2010
Bernanke Denies Printing Money. Mogambo Not Convinced, Buy Gold / Interest-Rates / Quantitative Easing
By: Richard_Daughty
No matter how much I try to calm down, I can't stop being angry about the unbelievable, towering arrogance of the horrid Ben Bernanke, chairman of the Federal Reserve, when he actually said, "One myth that's out there is that what we're doing is printing money. We're not printing money. The amount of currency in circulation is not changing"!!
Wednesday, December 22, 2010
Fed’s Bullard Defence of QE2 is Full of Contradictions / Interest-Rates / Quantitative Easing
By: Dian_L_Chu
James Bullard, President of the Federal Reserve Bank of St. Louis was on CNBC Monday, December 20, 2010 mostly defending the Fed’s controversial $600 billion Treasury purchasing program (QE2) announced in Nov.
What struck me as totally self-contradictory were Bullard’s statements regarding the QE2, treasury yield, inflation expectations, and inflation, which I will outline and rebuff below.
Wednesday, December 08, 2010
What's Up At the Fed? / Interest-Rates / Quantitative Easing
By: Dr_Jeff_Lewis
The last week was a full Federal Reserve soap opera, full of events and action that should appear suspicious to most anyone.
First, the Federal Reserve complies with a request to release information about its emergency lending and monetary policy actions during the financial crisis, at which point it is found the Fed was willing to hand cash to just about anyone. Next, Bernanke comes out on 60 Minutes, a very popular and watched program, to discuss quantitative easing three. Has the chairman gone mad?
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Wednesday, December 08, 2010
Quantitative Easing, An XtraNormal Office Discussion / Politics / Quantitative Easing
By: Mike_Hewitt
Two office co-workers discuss the reasoning of newest round of quantitative easing by the U.S. Federal Reserve.
Wednesday, December 08, 2010
Debunking Bernanke’s QE Not Money Printing Myth / Interest-Rates / Quantitative Easing
By: Axel_Merk
In his interview with “60 Minutes”, Federal Reserve (Fed) Chairman Ben Bernanke suggested it is a myth that quantitative easing implies printing money. With all due respect, Mr. Bernanke, if it looks like a duck and quacks like a duck, it is a duck!
Bernanke argues his policies do not amount to printing money, as neither currency in circulation, nor money supply has increased. This analogy is a bit like giving a loaded gun to a kid, then telling your friends that it’s not a deadly weapon because the shots that have been fired haven’t killed anyone. Granted, we are exaggerating here because, after all, it’s only money we are talking about. Yet, printing money may destroy one’s purchasing power and thus one’s life’s savings.
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Tuesday, November 30, 2010
QE2, Beware the Perils of its Success / Interest-Rates / Quantitative Easing
By: Vitaliy_Katsenelson
There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen. … the bad economist pursues a small present good that will be followed by a great evil to come, while the good economist pursues a great good to come, at the risk of a small present evil. -
Frederic Bastiat (1801-1850)
Monday, November 29, 2010
Modern Academic Economists Misinterpret Quantitative Easing / Economics / Quantitative Easing
By: Barry_Elias
If you are interested in promoting long-term, sustainable economic growth, I submit the velocity of money is more pertinent than the quantity of money (quantitative easing).
Apparently, many modern economists haven’t focused sufficiently on this economic parameter.
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Friday, November 26, 2010
Ellen Brown endorses Bernanke and QE2 / Politics / Quantitative Easing
By: Gary_North
In my November 22 article announcing Ellen Brown's defection to the Federal Reserve, I wrote this:
If she tries to defend herself by saying, "This is consistent with what I have always said," then she is dumber than dirt, or else she thinks her followers are dumber than dirt.
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Thursday, November 25, 2010
Ellen Brown Response to Gary North: QE2 IS the Populist Solution / Economics / Quantitative Easing
By: Ellen_Brown
Gary North, who purports to be an expert on the errors in my book “Web of Debt,” has evidently not actually read it. In an article posted on the Market Oracle on November 23, he says that in calling QE2 (the Fed’s new quantitative easing program) a “bold precedent,” I have switched sides. He apparently missed the entire chapter I wrote on this subject, first published in “Web of Debt” in 2007, saying exactly what I am saying now.
Wednesday, November 24, 2010
QE2 and The Great Economic Misdiagnosis, Insolvency Not Illiquidity / Economics / Quantitative Easing
By: Jim_Willie_CB
The backdrop has turned dire on several front simultaneously. The great millstone around the USEconomy's neck continues to drag it down. CoreLogic reported 2.1 million units have created a swamp in Shadow inventory of the housing market. That equates to 23 months inventory, whereas normal is 7 months. They tallied the growing tumor of bank owned properties as a result of home foreclosures, also called the REOs (real estate owned). Look for no housing market recovery for at least another two years. Starting in summer 2007, the Jackass forecast each year has been for another two years of housing market declines, all correct. Ireland might be squarely in the news, but the big enchalada is Spain. The Irish banks have presented a grand headache for the European banks, with a $150 billion exposure. Ironically, Ireland has done more to reduce its budget spending effectively than any EU member nation, yet is left to twist in the soft rain. They cut their government budget by 20%.
Wednesday, November 24, 2010
Fed’s Bearish Outlook Justifies QE2 / Economics / Quantitative Easing
By: Asha_Bangalore
The minutes of the November 2-3 FOMC meeting include forecasts about real GDP, inflation, and employment from members of the FOMC. The main conclusion from the new forecast is that the Fed is less sanguine about the pace of economic activity in the final three months of 2010 and 2011 compared with the previous forecast (see table below). The downward revision of growth and an upward revision of employment entirely justifies the announcement of the second round of quantitative easing of $600 billion.
Tuesday, November 23, 2010
Ellen Brown, Bernanke's Money Printing Cheerleader / Politics / Quantitative Easing
By: Gary_North
Ellen Brown is a lawyer. Lawyers are trained to settle a case when they are losing. Brown just settled with me.
She has just switched sides. Instead of becoming an Austrian School critic of the Federal Reserve, she has become its cheerleader.
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Monday, November 22, 2010
Does the Fed Create Money? / Interest-Rates / Quantitative Easing
By: Michael_Pento
Certain deflationists have recently gone on record saying that the increase in the Fed's balance sheet is meaningless with regard to creating inflation because our central bank can't print money, it can only create bank reserves. The problem with their view is that it both disregards the definition of money and ignores the process of creating bank reserves.
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