quantitative easing

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The End Of Cheap Debt: The Fall & Rise Of Interest Rates

Perhaps the greatest single trend impacting the next decade
Friday, September 7, 2018, 6:54 PM

Total debt (public + private) in America is currently at a staggering $67 trillion.

That number has been rising fast over the past 47 years, following the US dollar's transformation into a fully-fiat currency in August of 1971.

Perhaps this wouldn't be such a big concern were America's income, measured by GDP, we're growing at a similar rate. But it's not. » Read more

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A Hard Rain's a-Gonna Fall

The prospects for the rest of the year are awful
Friday, June 15, 2018, 6:55 PM

As the Federal Reserve kicked off its second round of quantitative easing in aftermath of the Great Financial Crisis, hedge fund manager David Tepper predicted that nearly all assets would rise tremendously in response. 

History proved Tepper right: financial and other risk assets have shot the moon. Equities have long since rocketed past their pre-crisis highs, bonds continued rising as interest rates stayed at historic lows, and many real estate markets are now back in bubble territory. 

And everyone learned to love the 'Fed put' and stop worrying.

But as King Louis XV and Bob Dylan both warned us, what's coming next will change everything. » Read more

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The End Of Stimulus? (And The Start Of The Crash?)

What the most important chart in the world is predicting
Friday, May 25, 2018, 7:29 PM

Back in January of 2016 we saw what appeared to be, and in my opinion should have been, the end of the Everything Bubble blown by the word's central banking cartel.

The carnage started in the emerging markets. Highly-leveraged positions and carry trades began to unwind. That's a fancy way of saying that all the big, sophisticated investors -- who were busy borrowing heavily in countries with cheap money (the US, Japan, and Europe) and using that debt to speculate in markets offering higher yields (junk debt, emerging markets, stocks, etc.) -- began to reverse their trades.

We are now seeing the same rapidly-deteriorating sequence in the markets today, here in late May 2018. And this time, it doesn't look like the central banks will be able to ride to the rescue as they have time and again over the past decade. » Read more

Insider

tas.gov.au

Off The Cuff: The QE Experiment Has Failed

After 10 years of robbing Peter to pay Paul, we're all broke
Friday, April 27, 2018, 1:01 PM

In this week's Off The Cuff podcast, Chris and Mish Shedlock discuss:

  • Backfiring Sanctions
    • Turns out, supply chains are complicated
  • Job Losses Now Exceeding Job Gains
    • First time (quarterly) since 2010
  • Trouble For Housing
    • Affordability is going from bad to horrible
  • The QE Experiment Has Failed
    • After 10 years of evidence, we have a verdict

The cracks in the central planner's long-term strategy are beginning to show. 

Volatility is returning to the world's financial markets, which stubbornly now resist to hit new highs. Job growth is peaking. Nearly everyone younger than the baby boomers is getting priced out of the housing market. And the unity of the recent globalization era is fracturing nearly everywhere around the world.

When it comes down to it, all the massive efforts to "save the system" following the onset of the 2008 Great Financial Crisis have served to do is enrich a small number of elites and corporations at the expense of everyone else. 

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
Podcast

traderscommunity.com

Danielle DiMartino Booth: Don't Count On The Powell Fed To Rescue The Markets

The new Fed Chair may break from his predecessors
Sunday, February 11, 2018, 4:29 PM

The recent gut-wrenching drop in asset prices began on the first day of the job for new Federal Reserve Chairman Jerome Powell.

How is Mr. Powell likely to react to a suddenly sick-looking market? Will he step in forcefully to reassure investors that there's a "Powell put" in place as a backstop?

To address these questions, former analyst at the Federal Reserve Bank of Dallas, Danielle DiMartino Booth, returns to the podcast this week. In her opinion, having studied Powell's previous statements, she thinks those expecting him to continue the market support his predecessors provided will likely be quite disappointed.

Powell appears to be no large fan of continued quantitative easing, and has long been on the record as concerned about the eventual pain its unwind will cause. He very well may resist riding to the market's rescue at this time, allowing natural market forces to finally have their way: » Read more

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Drowning In The Money River

Why the 99% of us are falling farther behind
Friday, January 12, 2018, 8:43 PM

If you suspect society is unfair, that there's a different set of rules the rich live by, you're right.

I've had ample chance to witness first-hand evidence of this in my time working on Wall Street and in Silicon Valley. Simply put: our highly financialized economy is gamed to enrich those who run it, at the expense of everybody else. » Read more

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What Could Pop The Everything Bubble?

A crisis that can't be solved by just printing more dollars
Saturday, October 28, 2017, 1:37 AM

The policy of creating trillions in new currency and buying trillions in assets has inflated an 'Everything' Bubble -- a bubble in all the asset classes being supported or purchased by central banks and their proxies.

Many observers wonder: What, if anything, can pop this? » Read more

Podcast

Lightspring/Shuttestock

Brien Lundin: If They Don't Want You To Own It, You Probably Should

The wisdom (and challenges) of owning safe haven assets
Monday, August 14, 2017, 8:39 PM

One of the most perplexing mysteries to us is that right as the Federal Reserve embarked on QE3 -- which was a huge, enormous, $85 billion a month experiment -- commodities began a multiyear decline within two weeks of that announcement. Concurrently, the world’s central banks plunged the world into steeply negative real interest rates, a condition that has almost always resulted in booming commodity prices -- but not this time. Today, the ratio between commodity prices and equities is at one of, if not the most, extreme points in history.

To explain that gap, we talk this week with Brien Lundin, publisher of Gold Newsletter and producer of the New Orleans Investment Conference (where Chris and Adam are speaking on Oct 25-28): » Read more

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Banks Are Evil

It's time to get painfully honest about this
Friday, March 17, 2017, 8:05 PM

I don't talk to my classmates from business school anymore, many of whom went to work in the financial industry.

Why?

Because, through the lens we use here at PeakProsperity.com to look at the world, I've increasingly come to see the financial industry -- with the big banks at its core -- as the root cause of injustice in today's society. I can no longer separate any personal affections I might have for my fellow alumni from the evil that their companies perpetrate.

And I'm choosing that word deliberately: Evil. » Read more

Podcast

american3rdposition.com

Danielle DiMartino Booth: An Insider Exposes The Evils Of The Fed

Killing savers, pensions & ultimately the bond market
Sunday, February 12, 2017, 1:01 PM

Danielle DiMartino Booth, former analyst at the Federal Reserve Bank of Dallas, has just released the book Fed Up: An Insider's Take On Why The Federal Reserve Is Bad For America.

In it, Danielle describes how the Federal Reserve is controlled by 1,000 PhD economists and run by an unelected West Coast radical with no direct business experience. The Fed continues to enable Congress to grow our nation’s ballooning debt and avoid making hard choices, despite the high psychological and monetary costs. And our addiction to the "heroin" of low interest rates is pushing our economy towards yet another collapse.

This reckless monetary policy pursued by the Fed has resulted in the rich elite becoming markedly richer, while savers and retirees are being absolutely gutted. All while risking a coming conflagration in the bond markets that will destroy a painful percentage of the world's financial wealth: » Read more