Tag Archives: money printing

  • 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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  • Blog
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    QE 4: Folks, This Ain’t Normal

    What you need to know about the Fed's latest move
    by Chris Martenson

    Friday, December 14, 2012, 5:22 PM

    40

    Okay, the Fed's recent decision to boost its monetary stimulus (a.k.a. "money printing," "quantitative easing," or simply "QE") by another $45 billion a month to a combined $85 billion per month demonstrates an almost complete departure from what a normal person might consider sensible.

    To borrow a phrase from Joel Salatin: Folks, this ain't normal.  To this I will add …and it will end badly.

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  • Insider
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    Off the Cuff: We’re in Danger of an Unwind of Everything

    Sick economy + printing press = collapse risk
    by Adam Taggart

    Thursday, December 13, 2012, 1:07 AM

    11

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

    • QE4
      • NOT a sign of a 'recovering' economy
    • Asset overpricing
      • The liquidity flood is making nearly every asset class overvalued now
    • No exit
      • The Fed has no plan on how eventually to remove this liquidity from the market
    • Potential for a monster upward move in gold
      • It's relatively undervalued, and it's the only safe haven left
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  • Podcast

    Bob Fitzwilson: 2012 is the “Most Difficult Year Ever” for End-of-Year Financial Planning

    Little time left to make big decisions
    by Adam Taggart

    Saturday, December 8, 2012, 5:27 AM

    38

    "This is probably the most difficult end-of-year planning I have ever seen in my career"

    ~ veteran investment adviser Bob Fitzwilson

    As the Fiscal Cliff looms ahead, as well as the implications of new legislation at both the Federal (e.g., "Obamacare") and state (e.g., California's Prop 30) levels, financial advisers are furiously working to calculate the impact these developments will have on their clients' net worth in 2013 and beyond.

    Add to that the ugly macroeconomic environment of spiraling sovereign debts and deficits, currency devaluation, and underfunded entitlement programs. At this point, the prudent assumptions to make are that taxes will go higher over time, the money printing machines will run at maximum speed, and when the system really begins to collapse under its own unsustainability the rules will be changed. Perhaps that means capital controls; perhaps it means new restrictions on large asset pools like pension and retirement funds; perhaps it means wealth taxation. At this point, no one knows for sure.

    No wonder this is such a difficult moment for end-of-year planning.

    So, what to do?

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  • Insider
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    Off the Cuff: Willful Blindness

    Our leaders are ignoring signs of both success & abuse
    by Adam Taggart

    Thursday, December 6, 2012, 12:34 AM

    31

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

    • Willful Blindness of the Fiscal Cliff
      • Our politicians choose the wrong path despite models for success
    • Gold Manipulation
      • Price discovery is broken in today's markets. Patient bullion holders will be eventually rewarded.
    • America's Growing Demographics Problem
      • Fewer workers making fewer real products
    • Money Printing Forever
      • Why it's the surest bet

     

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  • Insider
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    Why the Fed Will Fight to the End

    'It's the assets, stupid'
    by Chris Martenson

    Wednesday, November 14, 2012, 10:29 PM

    23

    Given the choice between accepting the risk of future inflation and dealing with the immediate and destructive consequences of deflation now, our fiscal and monetary authorities will always choose inflation.  At least if 800 years of history and the last four years are any guide.

    If I had to boil the whole thing down to one trite statement suitable for an election campaign, it might be, It’s the assets, stupid.

    Here’s why.

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  • Insider
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    Off the Cuff: When Trillions Aren’t Enough

    Our banks' bottomless need for capital
    by Adam Taggart

    Thursday, October 4, 2012, 3:36 PM

    14

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

    • No Joy on Wall Street
      • Banks cry poor despite record profits
    • The Invisible Recession
      • Hidden by faulty data
    • The Fallible Fed
      • It really doesn't know what's going on
    • Our Taxing Tax System
      • The case for simplification

    It's clear to all that QE3 is a continued push by the Federal Reserve to rescue the banking system. But why is it necessary?

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  • Blog
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    Welcome to the Era of ‘Ugly’ Inflation

    Where everybody loses
    by charleshughsmith

    Friday, September 28, 2012, 12:33 AM

    0

    A year ago, in the wake of then-announced additional monetary easing measures by the Federal Reserve (which since sent stock prices on a rocket ride for the next nine months), many of our readers feared a major decline in the dollar was imminent. To add some balance to our site content, we asked Peak Prosperity contributing editor Charles Hugh Smith to argue the case for a strengthening dollar. He graciously accepted, and in the year since writing Heresy and the US Dollar, America's currency has strengthened notably vs. its fiat counterparts. Now, after the Fed's announcement of QE3 (plus), many of us are girding once again for dollar weakness. So we've invited Charles to once again play devil's advocate.

    The Siren Song of 'Beautiful Deleveraging'

    In a world of rising sovereign debts and an overleveraged, over-indebted private sector, history suggests there are only three possible ways out: gradual deleveraging, defaulting on the debt, or printing enough money to inflate away the debt.

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  • Insider
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    Off the Cuff: Beggar Thy Neighbor

    What happens to world currencies when everyone prints money?
    by Adam Taggart

    Thursday, September 20, 2012, 11:17 PM

    20

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

    • Asian saber-rattling
      • How serious is it?
    • From here to QE-ternity
      • And wither the dollar from here?
    • Leading indicators lose steam
      • The economy is slowing further.
    • Intervention in oil prices?
      • Recent trades look fishy.

    Where to start this week?

     

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