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Tag Archives: qe
QE/ZIRP Is Crushing the Global Supply Chain, Product Quality and Profits
QE/ZIRP Is Crushing the Global Supply Chain, Product Quality and Profits We will soon wish we were allowed an honest business cycle recession once the current overcapacity implodes the global economy. We all know the quality of many globally sourced products has nosedived in the past few years. I addressed this in Inflation Hidden in Plain Sight (August […]
Chart Of The Day: This Is What Happens When There Is Even A Hint That The ECB Will Stop Buying Bonds
Chart Of The Day: This Is What Happens When There Is Even A Hint That The ECB Will Stop Buying Bonds Portugal’s bond yields continue to rise as the rating agency DBRS prepares to deliver its rating verdict. It’s the last rating agency that still has Portugal’s debt at an investment-grade level. If the downgrade […]
Should the Fed Raise Interest Rates?
Should the Fed Raise Interest Rates? For some time now the Fed has been hinting that it will moderate its interventions–monetizing government debt by printing money to buy government bonds and now quantitative easing by printing money to buy corporate bonds–in order to drive down the interest rate to unprecedented low levels. The Keynesian theory […]
Our uncomfortable ride with central bankers who can’t take us home again: Neil Macdonald
Our uncomfortable ride with central bankers who can’t take us home again: Neil Macdonald The great post-Great Recession money-printing bonanza was supposed to be temporary Chair Janet Yellen decided this week to keep the U.S. Federal Reserve’s interest rate where it is, saying the U.S. economy isn’t yet ready to withstand a modest increase. (Gary […]
Like Everything Else, History Repeats (Almost Exactly) Because Power Truly Corrupts
Like Everything Else, History Repeats (Almost Exactly) Because Power Truly Corrupts With both the Bank of Japan and Federal Reserve today undertaking policy considerations at the same time, it is useful to highlight the similarities of conditions if not exactly in time. As I wrote this morning, what the Fed is attempting now is very nearly […]
Time to Get Real: Part I
Time to Get Real: Part I In a world where fair value is a central bank veiled enigma it’s frankly a challenge to keep things real, but I’ll have a go at it in what will be a 3 part series covering central banks, the underlying fundamental picture, and a technical assessment of charts. In this part I’ll be covering […]
We’ve Reached the “Zero Point” of Debt Creation
We’ve Reached the “Zero Point” of Debt Creation Hurtling toward a massive financial crisis. Forty-five years and counting: We’ve been on a debt spree since the early 1970s when we went off the gold standard, covering every possible angle. Trade deficits, government deficits, unfunded entitlements, private debt – you name it! Our total debt has grown […]
When Government Controls All Wealth
When Government Controls All Wealth Sliding Into Absurdity BALTIMORE – Stock markets continued their rebound on Wednesday. The Dow rose 284 points… or just over 1.5%. London’s FTSE 100 Index was up 3.6%. And Europe’s equivalent of the Dow, the Euro Stoxx 50, was up 2.7%. No wonder the Dragon and his partners in crime […]
Will Japan Be the First to Test the Limits of Quantitative Easing?
WILL JAPAN BE THE FIRST TO TEST THE LIMITS OF QUANTITATIVE EASING? The Japanese stock market peaked in December 1989, marking the end of a period of economic expansion which briefly saw Japan eclipse the USA to become the world’s largest economy. Since its zenith, Japan has struggled. I wrote about this topic, in relation […]
Why the Quantity of Money Theory is DEAD Wrong
Why the Quantity of Money Theory is DEAD Wrong COMMENT: Bill Gross says you are wrong and helicopter money is coming and the Fed should print trillions to buy government bonds. Any comments? REPLY:Gross is not making a forecast without self-interest. Gross’ “helicopter money” calls for the Federal Reserve and U.S. Treasury to engage in another round […]
Failure of Abenomics
Failure of Abenomics Abenomics (アベノミクス Abenomikusu ?) in Japan are the economic policies advocated by Shinzō Abe since the December 2012 general election, which elected Abe to his second term as Prime Minister of Japan. Abenomics is based upon “three arrows” of fiscal stimulus, monetary easing and structural reforms. This has been a complete failure as the economy continue […]
“A Total Illusion from QE and Financial Engineering”
“A Total Illusion from QE and Financial Engineering” The 10-Year Treasury Is Less Than You Think When the Fed was created in 1914, it was set to task of controlling short-term interest rates in an attempt to iron out financial cycles. It succeeded for many years. But by avoiding the natural rebalancing (and occasional pain) from […]
What Have ‘We’ Been Doing All This Time?
What Have ‘We’ Been Doing All This Time? Amidst all the pearls of wisdom unleashed in mainstream economics over the past unbelievable eight years or so, it was one paragraph of common sense that had it been written and appreciated at the start of this period might have saved us all the inordinate and totally […]
Negative Interest Rates Destroying the World Economy
Negative Interest Rates Destroying the World Economy QUESTION: Mr. Armstrong, I think I am starting to see the light you have been shining. Negative interest rates really are “completely insane”. I also now see that months after you wrote about central banks were trapped, others are now just starting to entertain the idea. Is this distinct […]
Peak Negative-Interest-Rate Absurdity? Hilarity Ensues
Peak Negative-Interest-Rate Absurdity? Hilarity Ensues Among the goodies: “reverse Yankee” landmines. When a central bank like the ECB imposes negative interest rates along with QE on its bailiwick, funny things start to happen. Investors become so eager to get any kind of visible yield that they will do the craziest things. They’re now chasing €3 […]
