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Tag Archives: money printing

  • Insider
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    The Global Slowdown

    Economies across the globe are weakening notably
    by Chris Martenson

    Tuesday, October 7, 2014, 12:46 AM

    10

    I am on record as saying that the end of the US Fed money printing (a.k.a 'QE') is a bigger deal than the equity markets of the west and Japan have factored in.

    Further, I don't think that the ECB has sufficiently picked up the baton from the US Fed and I seriously doubt that they will be able to expand their money printing efforts much beyond that already announced due to pressure from a reluctant Germany.

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  • Blog
    Peak Prosperity

    Quantitative Easing – Crash Course Chapter 10

    What exactly is this process that the world is betting on?
    by Adam Taggart

    Saturday, August 23, 2014, 1:34 AM

    11

    At the exponential pace at which the Fed is increasing the money supply, and knowing the huge challenges the Fed – and most other world central banks  – face in trying to stop or even slow down their money printing, the potential for a disruptive global inflationary period is very real.

    So what exactly is quantitative easing

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  • Podcast

    Dan Ariely: Why Humans Are Hard-Wired to Make Irrational Decisions Around Money

    We're "Predictably Irrational"
    by Adam Taggart

    Sunday, July 7, 2013, 4:10 PM

    8

    Looking back at the carnage created by the bursting of the credit bubble, it’s natural to scratch your head and ask How did we ever let that happen? Behavioral economics exists to answer questions like this.

    Chris sat down with Dan Ariely, gallivanting behavioral-economics-researcher-extraordinaire, who is breathing new life into this previously obscure field of study. The resulting interview is full of fresh, non-intuitive insights and shines light on how the human brain is often hard-wired for irrational action when it comes to money.

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  • Insider
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    Off the Cuff: The Age of Delusion

    The gap between what we see & reality has never been wider
    by Adam Taggart

    Thursday, May 9, 2013, 5:55 AM

    7

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

    • Fuzzy Fed Math
      • Housing-cost methodology understates true inflation
    • China's Gold Hunger
      • Vacuuming up 50% of total world production
    • Market Madness
      • Any news good, bad, or worse drives stock prices higher
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  • Insider
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    Frustrated & Bored, Yet Happy

    At least being stuck in limbo offers time to prepare
    by Chris Martenson

    Friday, May 3, 2013, 12:10 AM

    36

    I am happy, bored, and frustrated all at the same time. 

    My frustration is one I share with everyone who believes that fundamentals (a.k.a. 'reality') matter.  This frustration is fueled by the endlessly-propped financial markets in which good news and bad news are both good and worse news seems to be even better.  No matter what the latest headline might say, it seems to ignite a new round of buying of stocks, bonds, and anything else that the central banks deem worthy of dressing up. 

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  • Blog
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    This Gold Slam is a Massive Wealth Transfer from Our Pockets to the Banks

    It likely signals a big downdraft in the stock market, too
    by Chris Martenson

    Monday, April 15, 2013, 7:55 PM

    79

    I am very disappointed by, but not surprised at, the latest transfer of wealth to the bankers from everyone else.  The most recent gold bear raid has vastly enriched the bullion bankers, once again, at the expense of everyone trying to protect their wealth from global central bank money printing.

    The central plank of Bernanke's magic recovery plan has been to get everybody back borrowing, spending, and "investing" in stocks, bonds, and other financial assets.  But not equally so, as he has been instrumental in distorting the landscape towards risk assets and away from safe harbors.

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  • Podcast

    David Stockman: We’ve Been Lied To, Robbed, and Misled

    And we're still at risk of it happening all over again
    by Adam Taggart

    Saturday, March 30, 2013, 4:42 PM

    19

    David Stockman, former director of the OMB under President Reagan, former US Representative, and veteran financier is an insider's insider. Few people understand the ways in which both Washington DC and Wall Street work and intersect better than he does.

    In his upcoming book, The Great Deformation, Stockman lays out how we have devolved from a free market economy into a managed one that operates for the benefit of a privileged few. And when trouble arises, these few are bailed out at the expense of the public good.

    By manipulating the price of money through sustained and historically low interest rates, Greenspan and Bernanke created an era of asset mis-pricing that inevitably would need to correct.  And when market forces attempted to do so in 2008, Paulsen et al hoodwinked the world into believing the repercussions would be so calamitous for all that the institutions responsible for the bad actions that instigated the problem needed to be rescued — in full — at all costs. 

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  • Insider

    How the Market Failure Will Happen

    Get out or get short
    by Chris Martenson

    Thursday, February 28, 2013, 3:34 PM

    53

    Executive Summary

    • The central-planning Status Quo will fight to the bitter end in order to keep stock and housing prices elevated
    • HFT algorithms dramatically increase the odds of immediate "air pockets" in stock prices
    • Persistently high gasoline prices are choking economic growth
    • A parade of economic headwinds (weakening GDP growth, higher taxes, the impact of Obamacare, sequester cuts, chronic unemployment) are blowing increasingly stronger
    • Powerful TBTF ("too-big-to-fail') interests are likely supporting the Fed's current efforts to boost asset prices
    • Both near-term and long-term history tell us that the more asset prices are artificially increased, the farther they eventually fall, as intervention hits its point of diminishing returns
    • Why you don't want to be long in this market when that happens

    If you have not yet read Part I: Warning: Stocks Likely to Crater from Here, available free to all readers, please click here to read it first.

    Hey, Where's My Cheap Gasoline?

    Expensive energy is a serious drag on economic growth.  It always has been and always will be, for obvious reasons.

    The average person can be forgiven for being confused by the recent spike in gasoline prices. Since early 2012, there has been a concerted effort to tell the tale that the U.S. is producing more oil than it has in a long time and is on track to rival Saudi Arabia.  

    Literally hundreds of articles have breathlessly repeated the same information over and over again, like all good marketing programs should.  But here in 2013, gasoline is on track to set price records and possibly make this year the most expensive one in history for gas prices: 

    How can this be? What is going on? How do we reconcile all the reports of record-breaking advances in U.S. oil production with these concurrent record-high gasoline prices?

    The answer starts with the fact that the U.S. still imports 40% of its daily oil supply and is nowhere near energy independence when it comes to petroleum. This means that the U.S. remains wedded to the world price of oil, which remains quite elevated in price with Brent crude remaining stubbornly elevated between $110 and $120 a barrel over the majority of the past year…

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  • Podcast

    James Howard Kunstler: The Dangers of the Age of Delusion

    We're acting as if risks have no consequences
    by Adam Taggart

    Saturday, February 16, 2013, 5:53 PM

    49

    It’s characteristic of the time that we’re living in that there simply is no sense of consequence. And that’s exactly what you get when you have a Federal Reserve that’s out of control and a public that is filled with technological narcissistic visions of Santa Claus delivering rescue remedies on demand. And so there’s no general sense that when you do things, bad things can happen

    James Howard Kunstler is concerned. Sure, he still has the same issues with the West's highly energy-consuming suburban lifestyle that he famously brought to light in his books, The Long Emergency, the World Made by Hand series, and Too Much Magic. But beyond our decaying fundamentals, he's distressed by society's unwillingness to be honest with itself about the issue's it's facing.

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  • Blog
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    QE for Dummies

    Understanding the most outlandish monetary experiment ever c
    by Chris Martenson

    Tuesday, February 5, 2013, 3:25 PM

    38

    A PeakProsperity.com reader recently lamented:

    I have been trying to get my head around the mechanism of QE. Not being an economist or experienced investor I don't really understand a lot of the jargon. The usual simple definition of QE as "thin air money printing" does not satisfy my need for understanding either. Have hunted for a description of QE for dummies that leaves me feeling like I get it, but with no luck. My difficulty is in understanding how thin air money gets into circulation.

    So I'm going to do my best to answer this plea in as intuitive and straightforward a manner as I can. I, too, share the need to understand the mechanism of a process in order to feel like I have a grasp of it.  And I think it's critically important to understand QE (also known by its full name, "quantitative easing") and what it really represents. Because it is, without a doubt, one of the largest market-shaping forces of our times.

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