Wednesday , 29 May 2024

Tag Archives: quantitative easing

Will We See Further Quantitative Easing?

[Given the Fed's most recent] statement at the end of their meeting last week in which they said: "The Committee will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate" (Translation: 'inflation may be getting too low, but don't worry, we are on the job') it seems to be setting us up for another round of quantitative easing. Words: 1147

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Will We or Won't We Have Another Recession Soon – The Case For and Against a Second Dip

I am worried about the possibility of a second dip - of a new recession beginning sometime in the next year or so - before the current recovery has had a chance to produce much improvement. Verbally-intuitively, the case for a second dip still seems pretty overwhelming to me. I take comfort in the knowledge that I tend to have a pessimistic bias, and in the fact that sophisticated quantitative models are generally putting the odds of a second dip quite low. On the other hand, successfully forecasting recessions has not been a strong point of quantitative models. Words: 1433

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Why the Fed MUST Continue to Buy Its Own Debt

The FED chose to solve the problem of too much debt by creating even more debt by taking the unprecedented action of buying it’s own debt under euphemisms like “quantitative easing” and “debt monetization” and also covert buying to artificially force negative real return rates of interest. Through this course of action, the FED so far has been able to turn what would have been a rapid deflationary collapse into a decaying inflationary depression which is euphemistically called “a recession that is now over”. Words: 955

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