Category: Quantitative Easing
The analysis published under this category are as follows.
Tuesday, March 15, 2011
RIP Shadow Banking System, Long Live QEx / Interest-Rates / Quantitative Easing
By: Gordon_T_Long
We have unwittingly become trapped in the snarled net of years of bad Public Policy. Like corporations that look no further than this quarter's results, our politicos never stop campaigning to start the tough task of ruling responsibly. A winning election simply represents 'rewards' and 'spoils' to all before quickly resuming the next campaign.
Friday, March 11, 2011
The Probability of More Quantitative Easing / Interest-Rates / Quantitative Easing
By: Richard_Daughty
It would be an understatement to say that I was flabbergasted to see that the monetary base jumped $130 billion dollars in two weeks!
Well, using an exclamation point as punctuation seems to confirm my suspicions that I was, indeed, flabbergasted, as the term seems, somehow, appropriate since I felt something more than the usual crushing pains in my chest, numbness running down my left arm, my guts heaving and sphincters tightening kind of reaction I get when I see horrifying, huge increases in money and credit created by the damnable Federal Reserve.
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Wednesday, March 09, 2011
Q.E. Money Printing Negative Feed Back Loop to Hyper-Inflation Oblivion / Interest-Rates / Quantitative Easing
By: Jim_Willie_CB
USFed Chairman Bernanke and the Quantitative Easing programs are caught in a negative feedback loop, the instruments at risk being the USDollar and the USTreasury Bond. The former suffers from lost integrity and direct inflation effect. The latter suffers from direct intervention and market ruin. The next QE round is guaranteed by the failure of the previous program in an endless cycle to be recognized later this year. Leaders are confused why the recovery does not take root. It is because the entire system is insolvent, and the 0% rate assures total capital destruction, not to mention the big US banks are sacred, never to be liquidated, a primary condition for recovery. Liquidation is tantamount to abdication of power of the Purse and control of the Printing Pre$$, never to happen. The greatest hidden damage is psychological, where the USDollar and its erstwhile trusted USTreasury Bond are no longer viewed as the safe haven.
Tuesday, March 08, 2011
How Much of QE2 Has Been Implemented? / Interest-Rates / Quantitative Easing
By: Asha_Bangalore
A1. The Fed announced the implementation of QE2 (quantitative easing, the second round) on November 10, 2010, which involves purchases of $600 billion of longer-term Treasury securities from the private sector. As of this writing, roughly $404 billion of Treasury securities have been purchased. The rest of the planned purchase of Treasury securities (33% of $600 billion) is scheduled to be completed by June 2011. Purchases of Treasury securities, as expected, have led to an increase in the size of the Fed's balance sheet (see Chart 1) to $2.5 trillion.
Monday, March 07, 2011
Is QE2 an Unmitigated Disaster? / Economics / Quantitative Easing
By: Dian_L_Chu
There was a debate recently between Rick Santelli of CNBC and James Bullard, President of the Federal Reserve Bank of St. Louis regarding the inflation effects of the QE2 initiative.
Wednesday, March 02, 2011
Monetizing Governmental Debt AKA Money Printing or in Bernanke’s Vernacular - Quantitative Easing / Interest-Rates / Quantitative Easing
By: D_Sherman_Okst
Here are some realities on Quantitive Easing:Read full article... Read full article...
Thursday, February 17, 2011
Fed QE2 Inflation Fuels Global Fury and Rage / Politics / Quantitative Easing
By: Mark_Thornton
The Federal Reserve has been busy the last three months pumping up the money supply by $300 billion dollars, with much more promised in the months ahead. Some of the results have been painfully predictable, others less so.
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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)