The Fed is channeling higher interest rates: Fed Committee participants anticipating higher rates and inflation already permeating throughout economy.
A market addicted to low interest rates is about to get a shock. Today our debt addicted system is accustomed to central banks providing all sorts of easy money. The market is awash with easy credit and inflation is rearing its funky head in all sorts of segments of the economy. Low interest rates have […]
Quantitative Easing has become heroin to the financial markets: Federal Reserve balance sheet hits $4 trillion this week.
Addiction is never an easy battle to overcome. This also applies to easy money addiction that is now part of the Quantitative Easing economy. The Fed’s extraordinary measures are now appearing to be more permanent measures. Every time the whispers of tapering are made the markets respond accordingly signifying that the stock market is fully […]
The Red Queen’s race and the real winners from Quantitative Easing: Celebrating the five year anniversary of redistributing wealth to the top.
The Federal Reserve is celebrating its 5 year anniversary of Quantitative Easing. As the stock market reaches record highs, it is useful to examine the real winners from QE. Luxury good purchases have done extremely well during this period as income inequality in the nation has reached levels last seen during the Gilded Age. Yet […]
What is the Federal Reserve’s end goal? Follow the money and you will find no intention of tapering, out of control public debt, and financial steroids for stocks. Fed balance sheet up $55 billion in one week.
The Federal Reserve is known for producing convoluted and purposely hard to decipher messages. The media is driven by what the Federal Reserve says but fails to analyze what is truly happening. The Fed is driving in a car with no brakes. This is clear given that the Fed balance sheet increased by $55 billion […]
The US cannot avoid a soft default even if a hard default is avoided: Debt ceiling already breached and US Treasury operating in emergency mode while US is paying $415 billion in annual interest expenses.
All the talk has shifted from the government shutdown to the US actually defaulting on outstanding debts. The markets were in deep fear but the last couple of days rumors that the debt ceiling would be raised put the rocket boosters on the stock market. Of course, the majority of Americans have little money in […]
To taper, or not to taper. Not the question if you are the Fed: Austerity intact while Fed balance sheet continues to expand.
The Federal Reserve has hinted at slowing down its Quantitative Easing machinery but that might face some challenges as the stock market experienced one of its worst months in over a year. This is not to say that the Fed should respond to the stock market when it sneezes but it makes it more unlikely […]
The uneasiness of Quantitative Easing: How QE is ineffective with helping the broader economy in favor of boosting support for too big to fail banks.
Quantitative Easing outside of economic and financial circles is a mystery to most of the public. In fact, start talking about the Federal Reserve and eyes will glaze over as if you were speaking in tongues. The financial sector counts on the public being ignorant of such things. That is why the failure of QE […]