{"id":51102,"date":"2020-02-11T20:11:25","date_gmt":"2020-02-12T01:11:25","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51102"},"modified":"2020-02-11T20:11:30","modified_gmt":"2020-02-12T01:11:30","slug":"truth","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51102","title":{"rendered":"Truth"},"content":{"rendered":"\n

Truth<\/a><\/h3>\n\n\n\n
\"\"<\/a><\/figure><\/div>\n\n\n\n

Every once in a while the truth shines through and we got a few doses of it today. Recently critics who suggested that the Fed\u2019s QE policies artificially elevate asset prices were dismissed as QE conspiracists, but the truth is that central bank policies are directly responsible for the asset price levitations since early 2019 and well before then of course as well.<\/p>\n\n\n\n

Loose money policies by central banks are goosing up asset prices. I\u2019ve said it for a long time, others have as well despite constant pushback by apologists and deniers: No, no, asset prices are a reflection of a growing economy and earnings or so we were told.<\/p>\n\n\n\n

All of this was revealed to be hogwash last year when asset prices soared to new record highs on flat to negative earnings growth and this farce continues to this day as the coronavirus is the new trigger for reductions in growth estimates yet asset prices continue to ascent to record highs following the Fed\u2019s record liquidity injections:<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

But now the truth is officially out and can no longer be denied.<\/p>\n\n\n\n

Here\u2019s new ECB president Largard stating it plainly:<\/p>\n\n\n\n

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\"\"\/<\/a><\/figure>\n\n\n\n

<\/strong>\u2714<\/strong><\/a><\/a><\/p>\n\n\n\n

Kudos to @Lagarde<\/a> for stating the obvious:

“European Central Bank President Christine Lagarde said her institution\u2019s loose monetary policy is hitting savers and stoking asset prices”https:\/\/www.bloomberg.com\/news\/articles\/2020-02-11\/lagarde-says-ecb-low-rate-side-effects-puts-onus-on-governments?sref=q1j4E2z1 \u2026<\/a><\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

Lagarde Says ECB Policy Side Effects Put Onus on Governments<\/strong><\/p>\n\n\n\n

European Central Bank President Christine Lagarde said her institution\u2019s loose monetary policy is hitting savers and stoking asset prices, as she called on governments to do more to boost the economy.bloomberg.com<\/p>\n\n\n\n

\n\n\n\n

But it\u2019s not only Lagarde.<\/p>\n\n\n\n

Even President Trump implicitly lays it all out as he\u2019s apparently watching every tick on the $DJIA:<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Truth Every once in a while the truth shines through and we got a few doses of it today. Recently critics who suggested that the Fed\u2019s QE policies artificially elevate asset prices were dismissed as QE conspiracists, but the truth is that central bank policies are directly responsible for the asset price levitations since early […]<\/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":[233,534,7542,661,23808,1250,3650],"class_list":["post-51102","post","type-post","status-publish","format-standard","hentry","category-economics","tag-ecb","tag-monetary-policy","tag-northman-trader","tag-qe","tag-sven-henrich","tag-truth","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51102","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=51102"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51102\/revisions"}],"predecessor-version":[{"id":51104,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51102\/revisions\/51104"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}