The Federal Reserve has spoken, again. And again they have said nothing worth hearing, but done so in serious language and tone. Does anyone consider this quarterly spectacle worthwhile anymore? Every quarter, like some pagan ritual, this scene repeats. Market worshipers treat it as some profound economic emanation that has the potential to re-direct the economic fate of the nation. [...]
QE
standard The Government Is Helpless, Bankrupt and Immoral.
Finally, some people are coming out and questioning the actions of the Federal Reserve. Here is a comment from David Einhorn (my emboldening): Sometimes you have to look at what is the base assumption. because sometimes you have a groupthink around the base assumption and everybody agrees to the same thing and acts reflexively and doesn’t really challenge what is [...]
standard Bigger Hangover Ahead
Almost one year ago (Nov. 3, 2011), I published a piece entitled Hangover From Hell that was highly critical of the approach to economic policy being applied around the world. Sadly, the policies have not changed since that article. Nor have these policies revived economies. Indeed things have gotten worse! Both the US and Europe have administered more alcohol to [...]
standard Bernanke’s QE Makes Matters Worse
The euphoria initially expressed by markets to unending Quantitative Easing (money printing) may be playing out. The last couple of days were mediocre in terms of stock market performance. For investors, it is a difficult time. Do you play for the inflation-induced bounce in stocks? That is the likely outcome, for a while, although recognize that it has nothing to [...]
standard Bernanke Continues to Pretend He Has Control
QE (quantitative easing), whether it be QE1 or QE10, is a euphemism. It represents the expansion of the money supply (printing money). An expansion of the money supply is inflation. Rising prices are not inflation, they are an effect of inflation. The disease is printing money (or QE if you want to call a rose by some other name). The [...]
standard Fed Move Looking Imminent
Here is another sign the Fed will act sooner rather than later regarding its next desperate action to cover up the failing economy. This one comes from Zerohedge, via Bloomberg. The comments are from Stephen Roach: “The Fed is flailing and has been flailing for the better part of the last three years. We had QE1, which worked, and that’s [...]
standard The Case For Additional QE
One simple chart makes a powerful case for additional QE (click to enlarge): The economy is dead in the water. QE provides some oxygen which appears to revive the economy until QE ends. As the election approaches, more oxygen will be supplied as incumbents from both parties want to remain in office. Look for an imminent announcement of more Fed [...]
standard Ignore The Barking Dogs
Jim Sinclair describes investing today in terms of the dog video below. Contrary to Mr. Sinclair’s opinion that the pups look like various members of the G20, I see strong resemblances to CNBC and its guests. No matter, the point is what is important and it is well-made. Please take note of Mr. Fred in the bottom right side. The [...]
standard QE3 May Be A Surprise
A reasonable synopsis of the ethics and morality of Washington, DC was provided in an article from Before Its News: “Maybe in times past [Washington 'elites' cared], when the power structure was a bit more reserved and less blatant about their corruption and manipulations,” Krieger continued. “They don’t hide that stuff anymore. The “elites” in America today are simply gangsters. [...]
standard Willie on Dollar Collapse
Jim Willie has been harping on the decline (collapse?) of the dollar. He is usually out front on these matters, often long before others. But pioneer scouts like Mr. Willie are often early and sometimes wrong. Regarding the fate of the dollar and his timing (imminent), I think he is more correct than most. He writes a newsletter at GoldenJackass.com, [...]
standard The Debt Ceiling Charade
The circus surrounding the debt ceiling makes interesting theater but all the babble is irrelevant. How the debt ceiling is eventually resolved only changes the timing and extent of the economic collapse. In that sense, it has no bearing on the ultimate fate of the nation. But what a spectacle! Politicians fight for political points while blaming the opposition for [...]
standard Diminishing Returns to Federal Reserve Policy Actions
The end of the government Ponzi scheme that has held up our faltering economy is coming. Only the timing is difficult to predict. One of the many signs is the diminishing returns to Federal Reserve monetary action. According to Phoenix Capital: all in all, the Fed’s supplied a minimum of $4 TRILLION into the markets since 2008 (I’m not accounting [...]