Tag Archives: quantitative easing

"In our view, monetary policy has been boxed in by previous actions, election year politics (and even more broadly by the dynamics of the contemporary state of democracy), and the slowdown in global forex accumulation. The result, we expect, will be a continuation of financial repression under the most optimistic of scenarios. At the very least, returns on liquid capital could remain negative for many years to come. Under such circumstances, demand for the protection offered by gold should remain strong. Should the presumed economic recovery falter, we anticipate that the calls for renewed QE will be deafening." John Hathaway

In this article I lay out precisely why the coming Crisis in Europe will be THE Crisis I’ve been forecasting for the last 24 months, why it will have dire consequences on the U.S. and why the Fed can do absolutely nothing to stop it this time round. Words: 1334

Please read the referenced articles below with an open mind, and only then reach your own conclusions. [Yes, you are being challenged again to 'think for yourself' - and invest accordingly.] Words: 699

We are going to get more money printing...[yet,] somehow, guys who want to buy stocks at 1,400 on the S&P all conclude that the Fed is going to stop easing...I just don't understand [when] the consequences of money printing are going to be more inflation and the metals (gold and silver) are going to be a big beneficiary of that.

We are now at the mercy of oil and the commodity markets. Bernanke's plan to print our way to prosperity is destined to fail. Ultimately, he is just going to spike inflation and collapse the global economy, resulting in a worse downturn than what we saw in 2008/09. Let me explain. Words: 510

The definition of insanity is to continue doing something that goes wrong, without contemplating that there could be a different course of action...[and we] are heading deeper and deeper into insanity...we are just getting deeper and deeper into problems leaving our children and grandchildren with loans that could well take decades to finish (paying) off. I fear we are now stoking up the conditions, at some point in the future, for serious inflation.

One of the problems with the debate over the “national debt” is that there’s no generally agreed upon definition of that term. Is it what the federal government owes, or what it owes foreigners, or what the whole country, private and public sector together, owes? Does it include off-balance-sheet items and contingent liabilities? There’s a hundred-trillion dollar gap between lowest and highest on this spectrum, which allows each commentator to confuse the rest of us by picking the measure that best suits their point of view. [Let's try to decipher the true state of the nation.] Words: 1468

Recent favourable macroeconomic data has suggested that the U.S. economy could be back on track but the recent uplift in the economy only hides more fundamental problems...[The truth of the matter is that] US economic growth will remain weak and below trend throughout 2012 as a result of net exports continuing to be a drag and the Fed being unable, in the face of political constraints, [to do enough, soon enough,] to help the economy significantly... [Let me explain more fully why that is going to be the case.] Words: 950

Daniel Thorn­ton, an econ­o­mist at the Federal Reserve Bank of St. Louis, argues that the Fed’s pol­icy of pro­vid­ing liq­uid­ity has “enor­mous poten­tial to increase the money sup­ply,” result­ing in what The Wall Street Journal’s Real Time Eco­nom­ics blog calls “an infla­tion inferno.” [Personally,] I think it’s too soon to make sig­nif­i­cant changes to a port­fo­lio based on infla­tion fears. Here's why. Words: 550

The growth in liquidity in global systems has become staggering...[reaching] a whopping $15 trillion - and rising - from the world's eight largest central banks [alone as shown in the chart below.]...[That's equal to almost] one-third of world equity values...which means that central banks are creating another bubble...No wonder the stock market is rising. [With so] much liquidity,...and with interest rates so low, there is no place to go but "risk on" assets. [That being said,] investors need to know how to capitalize on this short term phenomenon and how to prepare for the inevitable burst. [Let me explain further.] Words: 489