Aug 272016
 

jyellen

Washington Examiner: “Federal Reserve Chairwoman Janet Yellen suggested that the central bank might buy more kinds of assets in a future crisis during a speech Friday on the tools available to the Fed to manage the money supply.

In an address prepared for an appearance at an annual conference in Jackson Hole, Wyo., Yellen said that the Fed “may wish to explore the possibility of purchasing a broader range of assets” than it currently does.

Although she didn’t specifically say so, such assets could include stocks rather than the government bonds the Fed currently is limited to.”

Opinion: Mrs. Yellen’s speech on Friday had been the topic of conversation all week in the financial markets. When it finally came, the Fed chief said she might raise rates – but then again she might not.

IT IS DATA DEPENDENT.

Excuse me for raising my voice, but the dear lady has been saying that for years.

The data, or I should say the real data, stinks. Gross Domestic Product is an anemic 1.1%. The economy needs 3% just to keep up with people entering the work force.

Barack Obama is first president ever to not see a single year of 3% GDP growth.

The Fed’s four four stimulus packages purchased government bonds from banks with printed money. Now Mrs. Yellen is suggesting that if the Fed needs to buy assets in the future they may include stocks.

Imagine that. Imagine the Dow Jones averages hitting 25-50-100,000 on monopoly money. Imagine how happy every one will be? Except all it will do is create asset bubbles that will make 2008-9 look like a bull market.

It happened in Zimbabwe in 2006-8 as the annual rate of inflation exceeded 231 million percent and the stock market reached 4 million.

days

Buffet and Gates will be the first trillionares.

Aren’t you glad you won’t be here to see it?

2 Thess. 4:16-18.

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Aug 232016
 

shock

Zero Hedge: “In a Fed Staff working paper released over the weekend titled “Gauging the Ability of the FOMC to Respond to Future Recessions” and penned by deputy director of the division of research and statistics at the Fed, the author concludes that “simulations of the FRB/US model of a severe recession suggest that large-scale asset purchases and forward guidance about the future path of the federal funds rate should be able to provide enough additional accommodation to fully compensate for a more limited [ability] to cut short-term interest rates in most, but probably not all, circumstances.”

In other words, the Fed is already factoring in a scenario in which a shock to the economy leads to additional QE of either $2 trillion, or in a worst case scenario, $4 trillion, effectively doubling the current size of the Fed’s balance sheet.”

Opinion: We have been saying since the (supposed) end of QE 3 in 2014, that QE 4 was coming because the economy is propped up on counterfeit money and has been since November 2008.

When the big one comes, economists will wonder why no one saw it coming. They will opine that the Fed had it wrong. That printing money was only delaying a bigger problem while making the rich much – much richer.

The Apostle John saw that coming 2000 years ago “do not hurt the oil and wine“; the rich represented by the oil and wine will be just fine in the first 3 years of the tribulation. (Rev 6:5-6)

Antichrist will have made a deal in the Middle East and a brief period of peace will come upon the world. The Church will have been gone and the world will happily accept the mastermind of the greatest deal ever made as a sort of messiah.

Everybody will be happy: Jews will have a temple, Arabs who survived the Psalm 87 and Gog and Magog wars will have a leader to follow, as will many who called themselves Christians but were left behind, similar to the days before the flood, Mat. 24:38.

But precisely 42 months after the peace deal is enforced, that same leader will walk into a rebuilt temple and declare himself god Daniel 9:27.

The next 42 months will be hell on earth – so much so that John warns everyone with one of the most frightening verses in the Bible for those who have refused the pardon that the cross of Christ provides:

“In those days men will seek death and will not find it; they will desire to die, and death will flee from them.” (Rev. 9:6)

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Fed's Mester Says Helicopter Money "The Next Step" In US Monetary Policy

 Election 2016, End Times, Finance, GLOBAL ECONOMY, National security, New World Order, QE, US Economy  Comments Off on Fed’s Mester Says Helicopter Money “The Next Step” In US Monetary Policy
Jul 142016
 

sheister

Zero Hedge: “Think “helicopter money” is/will be confined only to Japan, which has been sending conflicting trial balloons about this unprecedented next step in monetary policy for the past two days (first Japan’s Senkei reported that the government will be adopting “helicopter money” followed by a government spokesman denying the report, then followed by a separate Bloomberg report about a 10T yen stimulus plan, the concluding with Abe advisor Koici Hamada saying that “boosting fiscal and monetary stimulus at the same time would be effective” in Japan)? Think again.

Speaking overnight in Australia, the Fed‘s Loretta Mester said helicopter money” could be considered to stimulate America’s economy if conventional monetary policy fails.”

ddrop

Opinion: That from the same Federal Reserve that says the economy is doing well enough to consider raising interest rates.

Time to review some definitions:

  • Inflation – a general increase in prices and fall in the purchasing value of money.
  • Deflation – a general decline in prices, often caused by a reduction in the supply of money or credit.
  • Hyperinflation – price increases are so out of control that the concept of inflation is meaningless.
  • Quantitative Easing (QE) – monetary policy/printing money that is  used by central banks to stimulate the economy when standard monetary policy has become ineffective.
  • Helicopter drop, also known as helicopter money, is a hypothetical tool of monetary policy that involves printing large sums of money and distributing it to the public in order to stimulate the economy.

Helicopter money was first coined by famed economist Milton Friedman in 1969, and repeated by former Fed Chairman Ben Bernanke in 2002 as a tool to fight deflation.

So three rounds of QE didn’t work, a decade of zero interest rates didn’t work, and negative interest rates are not working in Europe; instead of fixing the problem by making government spend only what it takes in, another scheme of giving away money is making the rounds.

It won’t work either. It will create an even bigger mountain of debt that cannot be paid back and make existing money worth much less.

At the risk of repeating myself, these schemes are setting the stage for an economic shock. I don’t mean to run out and sell assets because I really don’t think that when the big collapse comes we will be here.

Revelation 6:5-6 comes after Revelation 3:10, 4:1, 6:1-2, 6:3-4.

Maranatha

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Global markets lose $2.1 trillion in Brexit rout

 Antichrist, Bible prophecy, End Times, EU, Finance, GEO POLITICS, GLOBAL ECONOMY, ObamaCare, QE  Comments Off on Global markets lose $2.1 trillion in Brexit rout
Jun 252016
 
Global markets lose $2.1 trillion in Brexit rout

BREXIT, The Times of Israel: “Britain’s shock vote to pull out of the European Union wiped $2.1 trillion from global equity markets Friday as traders panicked in the face of a new threat to the global economy. Investors fled to the safety of gold, the yen and blue-chip bonds as the seismic shift in the

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Why the Fed rate talk was 'a bunch of nonsense'

 End Times, Finance, GLOBAL ECONOMY, National security, New World Order, QE, US Economy  Comments Off on Why the Fed rate talk was ‘a bunch of nonsense’
Mar 312016
 
Why the Fed rate talk was 'a bunch of nonsense'

CNBC: The Federal Reserve was never hiking rates four times this year. Investors didn’t believe it, and now Fed Chair Janet Yellen has all but explicitly acknowledged it. Indeed, Yellen‘s blockbuster speech Tuesday assuring that the central bank would go slowly on future adjustments to monetary policy only caught some of the market by surprise.

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Feb 132016
 
12.3 trillion of QE has added up to... this?

CNBC: “Central banks have been pumping money into the global economy without a whole lot to show for it other than sharply higher stock prices, and even that has been on the downturn for the past year. Growth remains anemic, and worries are escalating that the U.S. and the rest of the world are on

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Jan 222016
 
Did Mario Draghi Stop the Market Crash?

Bloomberg: “Stocks rose around the world, extending Thursday’s rebound from a 2 1/2-year low, on speculation that central banks will expand stimulus measures to counter turmoil in financial markets. Oil surged with emerging-market currencies, while haven assets retreated. European shares headed for the biggest two-day gain since 2011, the euro approached a two-week low and Spanish

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