Commodity Trade Mantra

Posts Tagged ‘QE Programs’

Why is the Whole Pie Shrinking? Well - It's Recession Time

We are picking up signals from a source even more powerful than central banks. This source is the specter of global recession. One of the other signals is the shrinkage in world trade. You can have a reduced trade deficit but still find that exports and imports are both shrinking. It means the global trading economy is shrinking: a sure sign of recession.

Currency Wars Become Much Nastier During Recession Times

All central banks have printed trillions of dollars in their respective currencies under various QE programs. They are at the point where they simply cannot print trillions more without risking the collapse of confidence in their currencies. How will central banks stop the recession when they’ve used up their dry powder fighting the currency wars?

The Bull Market in Stocks May Have Ended Already

With the Fed now running out of ammo, we MAY no longer be in a bull market. Instead, we MAY be entering a bear market. If so, you can forget about a recovery in four months. Instead, it may take four years… or 40 years… to reclaim the bull market high set this past May. Corrections in a bull market are one thing. Bear markets are something very different.

When Will The Fed To Panic & Bail Out The Market Once Again: BofA Explains

Short-term, markets seem intent on forcing either the Fed to pass in September, or the Chinese to launch a more comprehensive and credible policy package to boost growth expectations. Alternatively, a credit event in commodities may be necessary to cause policy-makers to panic. Markets stop panicking when central banks start panicking. Make sure to have a lot of gold and silver.

End Of The Era Of Central Banks

Central banks’ maniacal money printing schemes were the only way to keep history’s largest Ponzi scheme growing; & now that confidence in them is failing & the need for gargantuan QE programs just to prevent instantaneous collapse has arrived, it won’t be long before Central banks will have as much relevance as buggy whips.

A New Fed Playbook for the New Normal

The Fed knows very well that the economy needs zero% rates to stay afloat. So while the market talks the talk on raising rates, the Fed will continue to walk the walk of zero percent interest rates. Since none of the Fed’s prior QE programs were followed by rate hikes but by more QE, why should this time be any different?

Financial Markets - How Effective Have The Fed's QE Programs Been?

The rise & gains in the financial markets have come at a time when corporate profits are slowing; economic growth remains weak and geopolitical tensions have been on the rise. This is solely due to the Federal Reserve’s ongoing liquidity injections into the financial markets. How this all ends is really anyone’s guess.

QE's Economic Miss & Future Valuation Overshoot

With an aging demographic, increasing levels of indebtedness, and poor fiscal policy to combat the issues restraining economic growth, it is unlikely that continued monetary interventions will do anything other than simply foster the next boom/bust cycle in financial assets.

Yellen Promises More - Evidence Suggests Less

While Yellen remains committed to ongoing QE programs to support the recovery, not surprisingly, the asset markets rallied sharply on her testimony as the primary concern as of late has been the removal, or tapering, of QE that has been primarily responsible for driving asset prices higher.

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