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Drain, drain, drain…
Drain, drain, drain… Money from thin air going back whence it came from – circling the drain of a ‘no reinvestment’ black hole strategically placed in its way by the dollar-sucking vampire bat Ptenochirus Iagori Powelli. Our friend Michael Pollaro recently provided us with an update of outstanding Fed credit as of 26 December 2018. […]
The Fed Is Tightening More Than It Realizes
The Fed Is Tightening More Than It Realizes Before the 2008 collapse of Lehman Brothers, the Fed’s balance sheet stood at $925 billion—mostly U.S. Treasury securities. After 59 months of asset purchases to push down longer-term interest rates, it had ballooned to a peak of $4.5 trillion, including nearly $1.8 trillion in mortgage securities, in […]
The Fed Will Continue Tightening Until Everything Breaks
The Fed Will Continue Tightening Until Everything Breaks Around three years ago, in September 2015, I wrote an article titled ‘The Real Reasons Why The Fed Will Hike Interest Rates‘ in which I predicted that the Federal Reserve, in the face of criticism, would soon pursue a program of interest rate hikes into economic weakness. […]
Fed’s Balance Sheet Shrinks The Most Since Start Of QT; QE Unwind Hits $321 Billion
Fed’s Balance Sheet Shrinks The Most Since Start Of QT; QE Unwind Hits $321 Billion On Monday, when discussing the two key, opposing forces facing stocks this week, we said that while on one hand stock buybacks will make a triumphant return, as companies with $50bn of quarterly buybacks exited their blackout periods, and the […]
“Peak QE”: This Is What Share Of The Market Central Banks Now Own
“Peak QE”: This Is What Share Of The Market Central Banks Now Own After a decade of unprecedented liquidity injections by central banks to preserve the western financial system, global QE has peaked. First, the aggregate balance sheet of major central banks started to shrink earlier in the year, a reversal that took investors many […]
Blain: “We Are Finally Approaching The End Phase Of The 2008 Global Financial Crisis”
Blain: “We Are Finally Approaching The End Phase Of The 2008 Global Financial Crisis” Blain’s Morning Porridge, Submitted by Bill Blain “I found Rome a City of Bricks and left it a City of Marble.” In the Headlights this morning – see www.morningporridge.com for some of the stories I’m watching: Debt Leverage: Interesting quote I […]
QE Party Is Drying Up, Even at the Bank of Japan
QE Party Is Drying Up, Even at the Bank of Japan Despite repeated speeches to the contrary. As of September 30, total assets on the Bank of Japan’s elephantine balance sheet dropped by ¥5.4 trillion ($33 billion) from a month earlier, to ¥537 trillion ($4.87 trillion). It was the fourth month-over-month decline in a series […]
The Fed’s In A Box And People Are Starting To Notice
The Fed’s In A Box And People Are Starting To Notice It’s long been an article of faith in the sound money community that the Fed, by bailing out every dysfunctional financial entity in sight, would eventually be forced to choose between the deflationary collapse of a mountain of bad debt and the inflationary chaos […]
BCA: The “Bubble In Everything” Threatens $400 Trillion In Assets
BCA: The “Bubble In Everything” Threatens $400 Trillion In Assets By now, it’s a very familiar question: how high can the Fed hike rates before it causes a major market “event.” Two weeks ago, Stifel analyst Barry Banister became the latest to issue a timeline on how many more rate hikes the Fed can push […]
The Fed’s QE Unwind Hits $250 Billion
The Fed’s QE Unwind Hits $250 Billion Here’s my math when this “balance sheet normalization” will end. In August, the Federal Reserve was supposed to shed up to $24 billion in Treasury securities and up to $16 billion in Mortgage Backed Securities (MBS), for a total of $40 billion, according to its QE-unwind plan – […]
The Anatomy of a Crisis: A Strong Dollar and Disappearing Liquidity
The Anatomy of a Crisis: A Strong Dollar and Disappearing Liquidity Since March – the dollar’s rallied over 7%. And it’s caused the Emerging Markets to implode. But the bigger problem is what lies ahead. And that’s a global dollar shortage – which the mainstream continues to ignore. . . I’ve touched on this a […]
Update on the Fed’s QE Unwind
Update on the Fed’s QE Unwind With QE, the Fed created money to buy securities and pump up asset prices; now it sheds securities to destroy this money. Here’s what the Fed’s QE unwind – or the balance sheet normalization, as it calls it – is all about: it reverses over an unknown span of […]
Next Central Bank Puts QE Unwind on the Calendar
Next Central Bank Puts QE Unwind on the Calendar The end of an era spreads. Markets were surprised today when the Bank of England took a “hawkish” turn and announced that three out of nine members of its Monetary Policy Committee – including influential Chief Economist Andrew Haldane, who’d been considered dovish – voted to […]
“Dollar Is King”: Indonesia Joins India In Begging Fed To Stop Shrinking Its Balance Sheet
“Dollar Is King”: Indonesia Joins India In Begging Fed To Stop Shrinking Its Balance Sheet It’s getting a little tight around the neck for emerging market central bankers. On the same day that the governor of Malaysia’s central bank quit, and just days after Urjit Patel, governor of the Reserve Bank of India, took the […]
Swan Song Of The Central Bankers, Part 5: The Flat Line Does Not Spell Recovery
Swan Song Of The Central Bankers, Part 5: The Flat Line Does Not Spell Recovery The punk January industrial production (IP) report brought another reminder that the Fed has stimulated nothing at all on the output/employment prong of its dual mandate. Indeed, as they celebrate a purported “mission accomplished” full employment recovery and confidently prepare to plow forward with an epochal pivot […]
