{"id":24230,"date":"2017-06-25T18:42:01","date_gmt":"2017-06-25T23:42:01","guid":{"rendered":"http:\/\/olduvai.ca\/?p=24230"},"modified":"2017-06-25T18:42:01","modified_gmt":"2017-06-25T23:42:01","slug":"get-ready-for-qt1-a-first-look-at-the-federal-reserves-hidden-policy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=24230","title":{"rendered":"Get Ready for \u2018QT1\u2019: A First Look at the Federal Reserve\u2019s Hidden Policy"},"content":{"rendered":"
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Get Ready for \u2018QT1\u2019: A First Look at the Federal Reserve\u2019s Hidden Policy<\/a><\/h3>\n
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[Ed. Note: Jim Rickards\u2019 latest New York Times bestseller, The Road to Ruin: The Global Elites\u2019 Secret Plan for the Next Financial Crisis<\/i><\/b><\/a>, is out now. Learn how to get your free copy \u2013 HERE<\/b><\/a>. This vital book transcends rhetoric from the Federal Reserve\u00a0to prepare you for what you should be watching now.]<\/p>\n

The Federal Reserve is now setting out on a new path for quantitative tightening (QT) after nine years of unconventional quantitative (QE) easing policy. It is the evil twin of QE which was used to ease monetary conditions when interest rates were already zero.<\/p>\n

First, it is important to examine QE and QT in a broader context of the Fed\u2019s overall policy toolkit. Understanding the many tools the Fed has<\/a>, which of them they\u2019re using and what the impacts are will allow you to distinguish between what the Fed thinks versus what actually happens.<\/p>\n

We have a heavily manipulated system. For years, if not decades, monetary policy has been flipping back and forth between how the economy actually works and what the Fed believes works.<\/p>\n

QE was a policy of printing money by buying securities from primary dealers and to ease monetary conditions when interest rates were at zero. QT takes a different approach.<\/p>\n

In QT, the Fed will \u201csell\u201d securities<\/a> to the primary dealers, take the money, and make it disappear. This is an attempt to ultimately reduce the money supply and implement a policy of tightening money.<\/p>\n

There\u2019s a bit of a twist to that selling<\/em>. Today the Fed\u2019s balance sheet stands at $4.5 trillion. It started at $800 billion in 2008 and has increased over five times that since the crisis. Now they\u2019re going to try to get the balance sheet back to normal levels.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Get Ready for \u2018QT1\u2019: A First Look at the Federal Reserve\u2019s Hidden Policy [Ed. Note: Jim Rickards\u2019 latest New York Times bestseller, The Road to Ruin: The Global Elites\u2019 Secret Plan for the Next Financial Crisis, is out now. Learn how to get your free copy \u2013 HERE. This vital book transcends rhetoric from the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[11023,303,13599,8701,8625,3650],"class_list":["post-24230","post","type-post","status-publish","format-standard","hentry","category-economics","tag-daily-reckoning","tag-fed","tag-james-rickards","tag-qt","tag-quantitative-tightening","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24230"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24230\/revisions"}],"predecessor-version":[{"id":24231,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24230\/revisions\/24231"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}