Category: Quantitative Easing
The analysis published under this category are as follows.
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...
Thursday, October 16, 2014
Why the Fed Should Consider Delaying the End of QE / Interest-Rates / Quantitative Easing
By: Bloomberg
James Bullard, President of the St. Louis Federal Reserve Bank, told Bloomberg Television's economics editor Michael McKee today that the Fed should consider delaying the end of QE.
Bullard said, "I also think that inflation expectations are dropping in the U.S. And that is something that a central bank cannot abide. We have to make sure that inflation and inflation expectations remain near our target. And for that reason I think a reasonable response of the Fed in this situation would be to invoke the clause on the taper that said that the taper was data dependent. And we could go on pause on the taper at this juncture and wait until we see how the data shakes out into December. So...continue with QE at a very low level as we have it right now. And then assess our options going forward."
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Saturday, September 20, 2014
Monetary Policy Killing The System / Stock-Markets / Quantitative Easing
By: Jim_Willie_CB
The byline should read MONEY VELOCITY HITS RECORD LOW, WHILE MONEY SUPPLY CONTINUES TO GO INTO ORBIT... SYSTEMIC FAILURE IS EVIDENT AS POLICY IS NOT STIMULUS AT ALL... THE PRINCIPAL CAUSE FOR THE BREAKDOWN IS MONETARY POLICY, WHICH IS STUCK IN PLACE.
The USFed monetary policy is killing the system, simply and boldly put. They call it stimulus, when the extreme accommodation is actually just a backdoor Wall Street bailout combined with a pass on the USGovt debt discipline. No debt limit is enforced anymore, a travesty. The United States is looking more like a Third World nation with each passing month, with colossal fraud, economic decay, war and sanctions, and no leadership. The US Federal Reserve has ventured into very dangerous ground, putting hyper monetary inflation as the installed policy, while making money free for the Interest Rate Swap machinery that operates the derivative for maintaining the easy policy.
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Saturday, September 20, 2014
The End of Fed Tapering and Government Funding / Interest-Rates / Quantitative Easing
By: Alasdair_Macleod
Last year markets behaved nervously on rumours that QE3 would be tapered; this year we have lived with the fact. It turned out that there has been little or no damage to markets, with bond yields at historic lows and equity markets hitting new highs. This contrasts with the ending of QE1 and QE2, which were marked by falls in the S&P 500 Index of 9% and 11.6% respectively. Presumably the introduction of twist followed by QE3 was designed at least in part to return financial assets to a rising price trend, and tapering has been consistent with this strategy.
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Tuesday, September 16, 2014
The Truth Behind the Dangerous "Helicopter Money" Delusion / Interest-Rates / Quantitative Easing
By: Money_Morning
Peter Krauth writes: Seeking out major trends and power shifts in the global economy is the part of my work that I enjoy most.
It's a lot of work, and needless to say, it involves constant research.
That's why a piece I recently read in Foreign Affairs absolutely shocked me...
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Thursday, September 11, 2014
Europe Takes the QE Baton / Interest-Rates / Quantitative Easing
By: John_Mauldin
If the wide, wide world of investing doesn’t seem a little strange to you these days, it can only be because you’re not paying attention. If you’re paying attention, strange really isn’t the word you’re probably using in your day-to-day investing conversations; it may be more like weird or bizarre. It increasingly feels like we’re living in the world dreamed up by the creators of DC Comics back in the 1960s, called Bizarro World. In popular culture "Bizarro World" has come to mean a situation or setting that is weirdly inverted or opposite from expectations.
Sunday, September 07, 2014
The Simple Truth About QE / Interest-Rates / Quantitative Easing
By: Raul_I_Meijer
There’s not a single day that we’re not treated to more smart treats about stimulus measures. Are they necessary, are they good, are they bad, who profits from them. It gets really long in the tooth. Today, former ECB head Trichet says unlimited stimulus ‘risks’ blowing bubbles. “Supplying unlimited amounts of liquidity at interest rates close to zero has “unintended counterproductive consequences.”
Wednesday, August 20, 2014
Rising Interest Rates and The End of Stimuland / Interest-Rates / Quantitative Easing
By: Raul_I_Meijer
It’s Jackson Hole week, and we’re going to hear a lot of fairy tales and otherwise invented-from-scratch material. Since it may not always be easy to distinguish between pure mud and actual information, let’s destroy a few fantasy piñatas right here and now. So when Yellen and Draghi speak on Friday, you’ll be able to tell a few things apart. It’ll be hard enough, the speech writers and spin doctors won’t get much sleep this week.
Monday, August 18, 2014
Europe Economy Is Tanking, QE Is Coming / Interest-Rates / Quantitative Easing
By: Anonymous
Last year the world kind of forgot about Europe. After ECB head Mario Draghi vowed to “do whatever it takes” to get the Continent growing, the markets calmed down, money got cheap and plentiful and functionally-bankrupt countries like Greece, Italy and Spain stopped making scary headlines. To the casual observer it began to look like the euro project might actually succeed.
Friday, August 08, 2014
The QE Could Be Coming to an End – So What? / Interest-Rates / Quantitative Easing
By: Matt_Machaj
It is important to review the minutes released recently by the Fed, since they may well signal a turning point in monetary policy. The programs of active purchasing of government debt and commercial assets may be curtailed. Yet, as we have often discussed at length, it is not the most important element. There are other factors of monetary policy to be considered: interest rates for one, and the Federal Open Market Committee suggested they may start to discuss interest rate hikes. The so called taperie (small version of tapering) process discussed earlier in the Market Overview appears to be slowly finalizing:
Tuesday, August 05, 2014
Marc Faber on QE Money and a People's Bailout / Interest-Rates / Quantitative Easing
By: Keith_Hilden
Diego A. Saucedo Guerra writes: A Main Street Bailout in Washington or Mexico City?
In our latest Squawkonomics interview with Marc Faber, Keith Hilden raised the question of what Faber thought of the idea of a Main Street Bailout, a real People's Bailout that would lower personal debt and increase the rate of domestic investment and business formation- rather than simply only a Wall Street bailout. The legendary investor also ruminates upon the minimum wage and the role of the government in the economy. Check it out below:
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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!