Quantitative Easing

Tyler Durden's picture

Seven Charts That Leave You No Choice But To Not Feel Optimistic About The US Economy





At the end of July, 2014, an article was distributed called “seven charts that leave you no choice but to feel optimistic about the US economy”. Although the facts that they presented are correct, the conclusion that they drew is not. In the following sections, we will examine and refute each of the seven pieces of "evidence" that were presented.

 
Tyler Durden's picture

Energy And The Economy – Twelve Basic Principles





There is a standard view of energy and the economy that can briefly be summarized as follows: Economic growth can continue forever; we will learn to use less energy supplies; energy prices will rise; and the world will adapt. The following view of how energy and the economy fit together is very different - it is based on the principle of reaching limits in a finite world.

 
Tyler Durden's picture

As Chinese Credit Plummets US Stocks Soar On Hopes Of More PBOC Easing; But Is Conventional Wisdom Again Wrong?





Conventional wisdom, now so habituated to getting all the cheap credit it can get, did not anticipate such a dramatic collapse in Chinese credit last month, is eagerly expecting a proportional response from the PBOC, one which would potentially involve significant easing, which is precisely what US equities priced in today when they closed near the highs of the day, even as there was not a single piece of good macroeconomic news overnight. Pretty cut and dry right? Well not really. Recall that as we reported in the last week of July something odd was revealed: namely that China quietly unveiled and implemented its Pledge Supplementary Lending line, or as it is increasingly better known: China's QE.

 
Monetary Metals's picture

How Can the State Bank of India Pay Interest in Gold?





The Tirumala Tirupati Temple in India has deposited gold, and is getting paid interest in gold. Why is no one else paying interest in gold?

 
Tyler Durden's picture

If Goods Don't Cross Borders, Armies Will





While the conflict in Ukraine rages on, EU member states havedecided to impose (not so much more stringent)economic sanctions against Russia, which was predictably followed by Russian counter-measures. The question which isn't being asked often enough, is whether these sanctions will actually improve the situation. Here's an analysis following four concrete questions:

1. Can things get even worse in Russia?
2. Is the West able to guide Russia and Ukraine down the right path?
3. Can the West contribute to a sharpening of the crisis?
4. How can the West protect itself against this conflict?

 
Tyler Durden's picture

How The Fed Creates Money





What does the future look like for fiat currencies? (e.g. the dollar, the euro, the yen, the pound...) In the case of the dollar (which operates similarly to the other major world currencies), we know that - since all are "loaned into existence" - all dollars are backed by an equivalent amount of debt. Debt upon which interest must be paid. As all outstanding debt must compound over time at the rate of its interest (at least), we come to this important conclusion: Our money system is designed to grow exponentially. And it requires ever more debt in order to do so.

 
Tyler Durden's picture

Guest Post: How The Destruction Of The Dollar Threatens The Global Economy





The failure to understand money is shared by all nations and transcends politics and parties. The destructive monetary expansion undertaken during the Democratic administration of Barack Obama by then Federal Reserve chairman Ben Bernanke began in a Republican administration under Bernanke’s predecessor, Alan Greenspan. Republican Richard Nixon’s historic ending of the gold standard was a response to forces set in motion by the weak dollar policy of Democrat Lyndon Johnson. For more than 40 years, one policy mistake has followed the next.  Each one has made things worse. What they don’t understand is that money does not “create” economic activity.

 
Tyler Durden's picture

How Big Would A 'Real Correction' Likely Be?





"If this is the beginning of a more important, intermediate term, correction; how large could it be?" There is one important truth that is indisputable, irrefutable, and absolutely undeniable: "mean reversions" are the only constant in the financial markets over time. The problem is that the next "mean reverting" event will remove most, if not all, of the gains investors have made over the last five years. Hopefully, this won't be you.

 
Tyler Durden's picture

Making Sense Of The US Oil Story





We frequently see stories telling us how well the United States is doing at oil extraction. The fact that there are stories in the press about the US wanting to export crude oil adds to the hype. How much of these stories are really true? A major concern with falling per-capita energy consumption it that the financial system may soon reach limits where it is stretched beyond what it can stand. The economy needs energy growth to grow, but the economy is not getting it.

 
Phoenix Capital Research's picture

Even The Fed Admits QE Is a Failure





This represents a tectonic shift in the financial markets. It does not mean that Central Banks will never engage in QE again. But it does show that they are increasingly aware that QE is no longer the “be all, end all” for monetary policy.

 
Tyler Durden's picture

Gold And What The High Priests Of Funny Money Don't Want You To Know





Steve Forbes has had enough of the Federal Reserve and its "sinning" policies to undermine the dollar. In this brief interview with Birch Gold Group, the publisher and CEO of Forbes, Inc. exposes the damage that the central bank has created, "Bernanke was a disaster...has totally mucked up the credit markets." Blasting Janet Yellen "who needs to go to re-education camp," Forbes explains why he believes so strongly in the gold standard, and the one single scenario under which he would ever sell his gold.

 
Phoenix Capital Research's picture

Japan Just Proved That Central Bankers Are Out of Ideas...





Japan’s QE was large enough that no one, not even the most stark raving mad Keynesian on the planet, could argue that it wasn’t big enough. Which is why the results are extremely disconcerting for Central Bankers at large.

 
Cognitive Dissonance's picture

Institutionalized Tyranny and Serfdom





Okay, so American culture may be a little schizophrenic. So what? Why should we care? We believe in laissez-faire and non-intervention, so how is it our problem?

 
Phoenix Capital Research's picture

The Financial System is Primed For a Crisis Worse Than 2008





The market is extremely tired and the systemic risks underlying the Financial Crisis are in no way resolved. With investor complacency (as measured by the VIX) at record lows, the Fed withdrawing several of its more significant market props, and low participation coming from the larger institutions, this market is ripe for a serious correction.

 
Tyler Durden's picture

Why Wait For The Shoe To Hit The Floor? The Case For Selling Now





Waiting to sell is akin to ignoring the smoke and flames in the crowded theater and hesitating until somebody yells "fire!" to rush for the now-jammed exit.

 
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