Category: Quantitative Easing
The analysis published under this category are as follows.
Friday, January 23, 2015
Is 1.2 Trillion Euros The Right Answer To The Wrong Question? / Interest-Rates / Quantitative Easing
By: DK_Matai
Good News Or Bad News?
Once upon a time something good happened for Europe. The price of oil went down dramatically. When the oil price halved in the last months of 2014, there was no way for the European Central Bank (ECB) to fulfill its mandate of keeping price growth close to 2 percent a year. The ECB painted itself into a corner by targeting headline inflation, not core inflation, which excludes food and energy. Left with no choice, the ECB announced on 22nd January 2015 that it would begin printing digital money in large quantities, ie, start Quantitative Easing or QE in the near future. Contrary to popular myth, QE doesn't fight 'deflation', it rather causes it by keeping zombie banks alive. Why? Quantitative easing simply buries money in commercial bank vaults, by bolstering their balance sheets, when it is cash in circulation that is desperately needed.
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Friday, January 23, 2015
ECB and EU LTRO and QE for Dummies: Or, Make These Trades / Stock-Markets / Quantitative Easing
By: Money_Morning
Shah Gilani writes: Pssst! Do you want to make some money trading some initials? Real easy money?
For real. I just made my subscribers 382% trading these initials. And we’re not done. After closing out our 382% gain, we’re in the same trade again, and we’re up 180% in just a few weeks – and still going.
We’re also in a conservative trade, trading the same initials mind you, and we’re up 41% there.
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Friday, January 23, 2015
Market Should Not Doubt' Mario Draghi ECB QE / Stock-Markets / Quantitative Easing
By: Bloomberg
Larry Fink, CEO and Chairman of BlackRock, spoke with Bloomberg TV's Erik Schatzker and Stephanie Ruhle today at the World Economic Forum's annual meeting in Davos, Switzerland. Fink discussed the European Central Bank's asset-purchase plan and the outlook for the euro-dollar exchange rate, Federal Reserve policy and the U.S. economy. He also spoke about the Swiss National Bank's decision to abandon its currency cap.
Reacting to the ECB's quantitative easing announcement, Fink said: I think we've seen over the last few years you have to trust in Mario...the market should not doubt Mario. He's been able to pull this through...This monetary policy is going to keep the euro weak. And I think a weakened euro will allow European companies to improve. So I do think the European economies will be marginally better this year than last year."
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Wednesday, January 21, 2015
Investor implications of QE by the ECB / Stock-Markets / Quantitative Easing
By: Axel_Merk
Is European Central Bank (ECB) head Draghi’s determination to purchase government bonds turning Europe into a banana republic? What are the implications not only for the euro and U.S. dollar, but gold, stocks and bonds? Our analysis shows that conventional wisdom may be proven wrong in more than one way.
Tuesday, January 20, 2015
Swiss Say No to QE / Stock-Markets / Quantitative Easing
By: Harry_Dent
The markets have had an array of abrupt reactions to the Swiss National Bank’s (SNB) move to stop supporting the Swiss Franc against the euro from buying Swiss bonds.
The euro has crashed further, stocks have taken minor hits and gold has broken to the upside (as we expected near term).
But the biggest impact is likely to be on Mario Draghi’s up-and coming decision to ignite another heavily telegraphed round of quantitative easing (QE) to the tune of $1.2 trillion plus.
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Friday, January 16, 2015
Will the ECB Soon Fire Up the Printing Presses? / Interest-Rates / Quantitative Easing
By: Frank_Hollenbeck
There is growing anticipation that the European Central Bank will pull the QE (quantitative easing) trigger at its upcoming meeting on January 22nd. Never mind that such an action explicitly violates article 104 of the Maastricht treaty (article 123 of the Treaty for the Functioning of the European Union):
“Overdraft facilities or any other type of credit facility with the ECB or with the central banks of the Member States (hereinafter referred to as ‘national central banks’) in favour of Community institutions or bodies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member States shall be prohibited, as shall the purchase directly from them by the ECB or national central banks of debt instruments.”
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Tuesday, December 23, 2014
Could an Energy Bust Trigger QE4? / Stock-Markets / Quantitative Easing
By: Peter_Schiff
In a normal economic times falling energy costs would be considered unadulterated good news. The facts are simple. No one buys a barrel of oil to display above the mantle. No one derives happiness from a lump of coal. Energy is simply a means to do or get the things that we want. We use it to stay warm, to move from Point A to Point B, to transport our goods, to cook our food, and to power our homes, factories, theaters, offices, and stadiums. If we could do all these things without energy, we would happily never drill a well or build a windmill. The lower the cost of energy, the cheaper and more abundant all the things we want become.
Wednesday, December 10, 2014
Is The Halt of QE3 The End of The Loose Monetary Policy? / Stock-Markets / Quantitative Easing
By: Arkadiusz_Sieron
The end of QE3 neither implies the real abandon of purchasing assets (due to reinvesting interest and principal payments and rolling over retiring Treasuries) nor the permanent exclusion bond-buying programs from the tools of monetary policy. Investors should also be aware that the end of QE3 does not rule out loose monetary policy. Why?
Wednesday, December 03, 2014
World Slides Deeper into the Dangerous "Helicopter Money" Delusion / Interest-Rates / Quantitative Easing
By: Money_Morning
Peter Krauth writes: If it seems to you that central banks and government leaders have run out of ideas, you're not totally wrong.
Indeed, the latest move by Japan smacks of pure desperation, and it might seem silly if it wasn't already an idea that's been floated before.
In fact, we may yet have the chance to see "helicopter money" and its effects after all.
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Friday, November 21, 2014
Draghi Speaks the Truth; ECB Will ‘Do What it Must’ / Interest-Rates / Quantitative Easing
By: Gary_Tanashian
Words are important. This is not just a headline, it is a reality…
Draghi says ECB will ‘do what it must’ on asset buying to lift inflation
Not ‘do what it thinks would be the best course for the European economy’, not ‘choose the path of least resistance in guiding the financial system to recovery’… the ECB will DO WHAT IT MUST.
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Wednesday, November 19, 2014
Global Irrational Exuberance Enters a New Phase / Interest-Rates / Quantitative Easing
By: MISES
Brendan Brown writes: The present global plague of asset price inflation — with its origins in Federal Reserve quantitative easing policies and featuring much irrational exuberance — is transitioning into a new phase. Some optimistic commentators suggest a benign and painless end to the plague lies ahead. They cite the skill of the Federal Reserve in “ending QE.” These optimists even suggest that meanwhile, controlled injections of new viruses of asset price inflation by the Japanese and European central banks could have a good outcome, and this justifies the risks of the procedure. None of this optimism is justified by the evidence, nor by the known pathology of asset price inflation.
Friday, November 14, 2014
Stealth QE4 - Operation Tokyo Twist as Japan Sacrifices Pensions Funds / Interest-Rates / Quantitative Easing
By: Jim_Willie_CB
Simply put, QE can never be halted or even slowed. The USFed is in a corner, with no policy options, facing collapse, with no ability whatsoever to halt the systemic failure in progress. It can only rely on hidden machinery and profound lies, against a background of constant economic propaganda. The central bank franchise system wrapped around the fiat paper currency regime has failed. They cannot stop it, not even with endless bond fraud and endless war, the new twin towers of the fascist state legacy. The entire financial structures have become fully dependent on easy money and debt financed by a printing press, buttressed by derivative machinery. The Uncle Sam bearing the USDollar emblem is like a pathetic heroin addict brandishing a modern howitzer. The USDollar is fast losing its integrity, during a dangerous global rejection episode. Therefore, QE must be exported, the easy candidate Japan. Call it Operation Tokyo Twist.
Thursday, November 13, 2014
Contemplating Stocks Without QE / Stock-Markets / Quantitative Easing
By: Peter_Schiff
Some influences on the stock market are casual, subtle or open to interpretation, but the catalyst behind the current stock market rally really shouldn't be controversial. As far as stocks go, we have lived by QE. The only question now is, whether we will die without it. A larger version of this article appears in the fall edition of Euro Pacific Capital's Global Investor newsletter.
Monday, November 10, 2014
Yellen Hands Off Money Printing Press to Japan / Interest-Rates / Quantitative Easing
By: Michael_Pento
There is a saying: "The rich just keep getting richer". And by all accounts, since the 2008 financial crisis, they have. Unfortunately, for the struggling poor and middle class, wealthy asset holders have been the only beneficiary of six years of Federal Reserve easy-money policies. Under the tutelage of Ben Bernanke, the Fed introduced QE in March of 2009 with the hope it would save the economy from economic collapse. The goal was to create a new vibrant market for borrowing to replace the former vibrant market for borrowing that had just blown up, taking the economy with it. I am sure Ben Bernanke began this ruse with good intentions and the misplaced belief that real economic prosperity could be manufactured from creating new money.
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Tuesday, November 04, 2014
Marc Faber Warns Japan's Bond-Buying Program is a Ponzi Scheme / Interest-Rates / Quantitative Easing
By: Bloomberg
Marc Faber, editor and publisher of "The Gloom, Boom & Doom Report", spoke with Bloomberg TV's Trish Regan today. He commented on Bill Gross' remarks about deflation and explained why he thinks Japan is engaged in a Ponzi Scheme. He also spoke on oil prices and the midterm elections.
Faber said that Japan is "engaged in a Ponzi scheme in the sense that all the government bonds that the Treasury issues are being bought by the Bank of Japan."
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Saturday, November 01, 2014
The Fed Ends QE / Politics / Quantitative Easing
By: Stephen_Lendman
On October 29, A Federal Reserve press release said in part:
The Open Market Committee (FOMC) "decided to conclude its (QE) asset purchase program this month."
It's "maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction."
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Saturday, November 01, 2014
Japan QE As Morphine For A Terminal Patient / Interest-Rates / Quantitative Easing
By: Raul_I_Meijer
You can jot down Halloween 2014 in your calendar, and it’s unfortunately too tragic to make proper use of the irony involved, as the day Japan committed suicide. The sun is no longer rising. Not that the vital signs weren’t bad before, indeed it might not have survived regardless, but this lethal blow announced today is still quite the statement.
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Friday, October 31, 2014
QE Is Dead, Now You Tell Me What You Know / Interest-Rates / Quantitative Easing
By: Raul_I_Meijer
It seems like every blue moon or so I need to return to Groucho’s definition of chaos theory, it keeps on popping up. The first time I used it in an article goes back to at least May 2009, incidentally for many people the starting date of the financial crisis in their part of the world. This time around, it’s there because it’s what a lot of people in the financial markets must be feeling. And I mean ‘must’ in the sense of ‘should’ be feeling, though I don’t think they are. Yet.
Friday, October 24, 2014
QE Failure & Folly Of Paper Mache, Treasury Bond Integrated Lifeline Patches / Interest-Rates / Quantitative Easing
By: Jim_Willie_CB
The Quantitative Easing initiatives have been declared as stimulus and successful in sustaining the US financial system. While having been able to continue the debt floats, the many market props, providing coverage for USGovt debt securities and mortgage backed securities which nobody wants, the initiative is hardly stimulus. The hyper monetary inflation does what we always learned it did, as in from school for 50 years, dole out its powerful corrosive effect. The inflation lifts the cost structure, leads to elimination of profit margins, and forces businesses to shut down, thus taking equipment out of service. The Jackass prefers to call the QE effect as killing capital, forcing retired capital, putting equipment on mothballs, often liquidated. Neither the USFed nor the Wall Street partners ever refer to the capital destruction effect, because it contradicts their stimulus argument and false message. Theirs is pure propaganda in keeping with the urgent directive to save the banks that are too big to fail. These are the financial crime centers of America.
Wednesday, October 22, 2014
The Inevitability of QE / Stock-Markets / Quantitative Easing
By: Clif_Droke
A swan dive in commodity prices followed by the latest stock market correction has investors talking about the “D word” once again. References to deflation abound in the news while economists seriously discuss the possibility of a global economic recession. What, they ask, will it take to arrest the slowdown in the euro zone and China and prevent its coming to U.S. shores? Why central bank intervention, of course!Read full article... Read full article...