Quantitative Easing (i.e. printing money)

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Re: Quantitative Easing (i.e. printing money)

Postby Pixel8r » Thu Nov 02, 2017 8:26 pm » Safari 11.0 Safari 11.0  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

mSparks » Thu Nov 02, 2017 8:39 pm wrote:
Pixel8r » Tue May 11, 2010 11:37 pm wrote:
warpig wrote:I picked up on this before and I've always thought once we start to get rioting across the UK I will start to switch out of BV and GM and in to 100% physical. My biggest concern is that you're an easy target if your clearly in a PM system, I prefer the anonymous approach.

I think GM is a safer option than BV as it is governed by the rule of law in Jersey. DC would find it a lot harder to get his hands on it IMO.


I know this is a quote from the first page and kinda off topic, but we were just talking to some survivors today.

When the "rule of law" in Jersey includes providing young kids from institutions such as Haute de la Garenne to go spend time on the likes of Prince Andrews yacht never to be seen again.

Just say no.

Pedophilic elite are above the law everywhere, or so it seems currently.
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Re: Quantitative Easing (i.e. printing money)

Postby Pixel8r » Sat Jan 27, 2018 5:09 pm » Safari 11.0.2 Safari 11.0.2  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Image

Chart from the WSJ showing that central banks hope to actually put QE into reverse by summer 2019. I doubt that sincerely myself, QE cash has been used to control interest rates by the purchase of government bonds and also a lot of QE cash has ended up feeding into the stock market. As the amount of QE reduces I expect that rates will start to climb and the stock market will start to fall. This will cause the problems of the financial crisis to reappear and CB's will go back to all they can do, which is carry on printing in an attempt to monetise the debt.

What this all comes down to is the central bank policy of financial repression. Keeping interest rates low while under-reporting inflation making the public pay. I expect that at some point the public will wake up to what is being done to them.
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Re: Quantitative Easing (i.e. printing money)

Postby Pixel8r » Mon Jul 30, 2018 12:36 pm » Safari 11.1.2 Safari 11.1.2  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

They are now realising that printing loads of money and buying all the toxic debt at 100% value could have bad consequences. Funny how we worked that out the second it was announced, now the banks have finally realised after getting all their toxic debt bought. No sh*t Sherlock! :twisted:

Bankers control the politicians and all of us. I just hope that when this starts to hit that the public rise up and start hanging bloodsucking bankers from the lampposts.

JPMorgan: QE Might Have Devastating Consequences After All

Here is a list of the key negative consequences arising from QE, from JPMorgan:

1. Results in Asset Bubbles and a Collapse in CapEx: Even as QE has likely exerted downward pressure on bond yields, the significant increase in central banks’ balance sheets makes an exit potentially more difficult, and raises the risk of a policy error or of an increase in perceptions about debt monetization. It potentially creates asset bubbles by lowering asset yields relative to historical norms, that an eventual return to normality could be accompanied by sharp price declines. Perceptions about asset bubbles can thus also increase long term uncertainty. In turn higher uncertainty might prevent economic agents such as businesses from spending, i.e. the collapse in CapEx observed over the past decade as company used cheap debt to purchase their own, making management teams richer.

2. Creates Zombie Companies and Crushes Productivity. Low credit spreads and corporate bond yields are an intended consequence of QE but not without distortions. By allowing unproductive and inefficient companies to survive, helped by low debt servicing costs, QE could potentially hinder the creative destruction taking place during a normal economic cycle. In principle, QE could thus make economies less efficient or productive over time. Which should answer the long-running debate over the chronic lack of economic productivity in the new normal. The debate about so called "zombie" companies has been particularly intense in Japan given the low business turnover rate. According to OECD, Japan's business startup and closure rate is about 5%, roughly a third of that in other advanced economies with several commentators blaming the BoJ's ultra-accommodative policies for this problem.

3. Low Rates crush savers, make the rich richer. One of the most visible impacts of QE has been the decline in discount rates, which in turn has created wealth effects via supporting asset prices. However, an argument could be made that these wealth effects are not evenly distributed, and that low discount rates mean savers suffer from an erosion of income.

4. Exacerbates currency wars. QE could exacerbate so called “currency wars”. The value of the Japanese yen collapsed after Abenomics started in November 2012 and has stayed at historical lows since then helped by BoJ's ultra accommodative monetary policy. This is shown in Figure 5 by the real trade weighted index of the Japanese yen. Japan's main competitors across EM and DM have been feeling the pressure from this depreciation, though it is not clear that the depreciation necessarily means the yen is undervalued.
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Re: Quantitative Easing (i.e. printing money)

Postby Laura » Thu Mar 21, 2019 10:32 am » Google Chrome 71.0.357 Google Chrome 71.0.357  Android Android  Screen Resolution: 1024 x 600 1024 x 600

As per my usual disfunctional m.o. this is probably not quite in the right 'slot'?

Until the central banking system is dismantled and replaced with debt free money, optimism will not return to our country, much less to the entire world. Since the collapse of society is already upon us, how can any sound minded onlooker of the human condition in these later days believe that the banksters can be defeated and cast into the pit of eternal punishment?


http://www.marketoracle.co.uk/Article64462.html
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Re: Quantitative Easing (i.e. printing money)

Postby Pixel8r » Fri Dec 13, 2019 3:08 pm » Safari 13.0.3 Safari 13.0.3  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Details of the FED's "not QE"

The Fed Has 'Absorbed' 90% Of Treasury Issuance Since September

The Fed is pumping $145 billion per month into the system. That’s more than under QE One. Powell has said that it’s Not QE, and now says that it won’t have macroeconomic effects. Oh please. Humor me.


No, the purpose is to absorb enough of US government debt issuance to keep rates down. As of right now, so far that has meant 90% of all new issuance. The Fed is effectively monetizing the US government debt!
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Re: Quantitative Easing (i.e. printing money)

Postby Pixel8r » Sat Dec 21, 2019 11:48 am » Safari 13.0.4 Safari 13.0.4  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Repo Oracle Zoltan Pozsar Expects Even More Turmoil

In September an often overlooked but vital part of the global financial system short-circuited. It’s called the overnight repurchase agreement, or “repo,” market, and when it seized up, the interest rate that institutional borrowers had to pay for very short-term loans went (briefly) through the roof.

In the aftermath, people in the market sought answers—to understand both what had gone wrong and the risk of it happening again. Many have turned to a Credit Suisse Group AG analyst named Zoltan Pozsar, who predicted the breakdown with almost eerie accuracy in an August research note.

Pozsar has some bad news: There’s more trouble ahead. Despite the Federal Reserve’s recent move to pump almost $500 billion into the repo market to prevent a yearend funding squeeze, deep-rooted problems remain...
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Re: Quantitative Easing (i.e. printing money)

Postby Pixel8r » Thu Mar 26, 2020 7:56 am » Safari 13.0.5 Safari 13.0.5  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Fed Buys $587 Billion In Bonds In Past Week, 2.7% Of GDP, Just As Foreign Central Banks Start To Liquidate

Having moved from "Not QE" (or QE4 as it was correctly called), to the $750BN QE5 which came and went with the blink of an eye, to the Fed's open-ended and unlimited QEnfinity in the span of one week, the full "shock and awe" of the Fed's money printer is now on full display, and in just the past week, from March 19 to March 25, the Fed has purchased $587BN in securities ($375BN in TSYs, $212BN in MBS), or roughly 2.7% of the $21.4TN in US GDP.

This means that as of Wednesday close, when accounting for last week's repo operations, the Fed's balance sheet has increased by roughly $650BN, bringing it to just over $5.3 trillion, an increase of $1.2 trillion in the past two weeks, or roughly 5.6% of US GDP...


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