Commodity Trade Mantra

Posts Tagged ‘QE’

Meet Quantitative Tightening; Quantitative Easing's Evil Twin

There is a growing sense across the financial spectrum that the world is about to turn some type of economic page. Now that QE (Quantitative Easing) is ready to move out…QT (Quantitative Tightening) is prepared to take over. No one in the mainstream is too sure what the last chapter was about, and fewer still have any clue as to what the next chapter will bring.

Federal Reserve Fairytales: 15 Reasons Fed Policies Belong in Fantasyland

If you add all this up – all the forward guidance, all the dates, all the targets, the currency wars, operation twist, all the flavors of QE, 15 separate fed policies in 5 years, that tells you, you don’t know what you’re doing. You’re making it up as you go along. So people should have no confidence in the Fed. That’s for starters.

Ballooning Student Debt Levels will Usher in New QE

Today almost a third of student debt is going unpaid. The White House’s solution is to revisit bankruptcy laws surrounding student debt. It is looking like a new bill will be passed, one that will restructure student debt laws. Get ready for the next wave of QE, the next wave of money printing. QE to infinity continues.

QE Warfare Pushing World Financial System out of Control

William White, a former chief economist to the Bank for International Settlements said QE is a disguised form of competitive devaluation. “There is a significant risk that this is going to end badly. Central banks have been put in an invidious position, compelled to respond to a deep economic disorder that is beyond their power.”

The End Of QE3, Trouble Ahead For The Bulls?

The Federal Reserve’s latest asset purchase program, QE3, is coming to an end. What was once an $85 billion a month program, one in which at its peak had been goosing the financial markets and economy at an annual rate of $1.0 trillion – and over its 27 month life will have pumped $1.7 trillion of money into the economy – is going to zero.

The Fed “IS” the Problem!

The solvency of the Fed itself will be questioned during the next crisis, which seems to already have begun. Either the Fed gets the markets calmed down or, the markets will begin to question the Fed’s “all-encompassing power.” When will speculators take them on? Announcement of further QE will probably do the trick.

Meet The World's First "Undercover, Super-Secret Central Banker"

World’s most powerful central banker was so terrified of leaving a paper trail with his real name in what he realized was borderline illegal meddling in financial systems, he felt compelled to use a pseudonym!. Mr.Quince Edward (QE) was the pseudonym then-Fed Chairman Bernanke used when conferring with colleagues during financial crisis.

Janus Yellen & the Great Transition from Risk-On to Risk-Off

Regardless of how Janus Yellen tries to sell the idea as the miraculous “fix” to the systemic bubble in claims the central banks have inflated, it will fail just as predictably as her plan to defuse the risk-on trade while maintaining the inflated value of the phantom assets the speculative frenzy has created out of nothing.

Gold, Dollar Index & S&P 500 Index - Long Cycles & Trend Changes

Given the troublesome global economic conditions & potential expansion of war, there is considerable risk that S&P 500 could fall substantially & a strong probability that gold will rally. A growing global movement away from the dollar use in global trade bodes poorly for long-term dollar strength but well for higher gold prices.

Why the Federal Reserve Will Launch Another Round of QE

Equity investors drove stock markets higher each time a new round of QE was announced. QE reflated US economy by pushing up asset prices. Odds are quite high that it will begin to deflate again when QE ends in Oct. Should that occur, would the Fed then launch yet another round of QE or fall back to severe recession & deflation?

QE Ending Because It Was Successful? Then Here Are A Few Questions

Certainly, QE-induced perpetually rising asset prices & sinking volatility, likely boosted consumer confidence through the interpretation of lofty prices as ‘all must be well’. However, those aspects dangerously conspire to produce a false perception about the true state of economic fundamentals. Some simple questions need answers.

The Next Phase of Gold Profits is About to Begin

When it comes to the performance of gold & gold stocks, history indicates good times are ahead based on where we are in the Fed Funds Rate Cycle. A new easing cycle is starting in Europe, Japan & emerging markets – the big gold consumers. As money supply grows, countries eventually feel inflationary pressures – good sign for gold.

QE: Quantitative Easing or Questionably Effective

If you were a member of the top 5 – 10% & had a large investment in the stock market, you have increased your nominal net worth, thanks to the levitating wonder of “printing money” via QE – Quantitative Easing. However, if you were in the bottom 90%, then the wonders of QE did not “trickle down” to you, except as higher prices.

Tapering Is Good for Gold

Gold prices fell lot in 2013, but quantitative easing was still going strong then. The Fed’s reduction of QE from 85 billion to $35 billion per month indicates that banks are becoming healthier, which means they will begin to push money out into the broad economy. Inflation would result – which is a gold positive.

Paul Singer

If the economy does not light up, the impact of another year of full-bore QE is impossible to predict. Five years and $4 trillion have created economic and moral distortions but very little sustainable value. Maybe the sixth year will produce the “riot point.” Nobody knows, including the Fed.

What Happens When The Giants Unwind Economic Stimulus

The world has depended on Chinese and American stimulus for years, and one implication of their tightening is a slowing global economy in 2014 – Unwinding stimulus, especially one so large and prolonged, is fraught with unintended consequences. Bubbles tend to pop, not deflate slowly.

Surprise, Surprise … The Dreaded Taper Is Postponed Again

With Tuesday’s release of Sept payrolls report, various banks have now decided to alter the taper time line they previously envisaged as well – We believe that the pace of ‘QE’ will actually be increased rather then lowered at some point in the future.

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