Jan 222016
 

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 and Italian bonds rallied after European Central Bank President Mario Draghi indicated he may bolster economic support as soon as March. Crude was poised for its steepest two-day rally in five months and the Russian ruble rebounded from a record low. Asian stocks climbed the most since September on speculation Japan and China may also take steps to calm markets.”

Opinion: Mario Draghi (Italian for dragon) is the Janet Yellen of Europe. The head banker.

With one sentence “We are adapting our instruments to the changing conditions,” Draghi sent the global markets on a rally. So what does it mean?

Stimulus, also known as Quantitative Easing (QE), means that Chairman Draghi is willing to keep manufacturing money to deposit into banks. The happy bankers then take that money and buy stocks and bonds and wham-o Batman, everybody is as happy as can be.

Yes, Virginia, QE makes the mountain of debt grow so large that it will one day become impossible to pay back, but since virtually no one cares, and the market is up, it’s time to party for now.

It is little wonder that when the Black Horse Rider (Revelation 6:5-6) comes on the scene, the party will come to a screeching halt.

Hyper-inflation is a sudden phenomenon.

See Headline: “Desperate: Hillary Prepares to Embrace Slavery Reparations”  BPTnews.org

Share

After 6 Years Of QE, And A $4.5 Trillion Balance Sheet, St. Louis Fed Admits QE Was A Mistake

 Bible prophecy, Finance, National security, New World Order, QE, US Economy  Comments Off on After 6 Years Of QE, And A $4.5 Trillion Balance Sheet, St. Louis Fed Admits QE Was A Mistake
Aug 202015
 

quantitative-easing-QE-660x300

Zero Hedge: “As you’re no doubt aware, the Fed is fond of using the research departments at its various branches to validate policy and analyze away bad economic outcomes. For instance, earlier this year, the San Francisco Fed came up with an academic justification for the now infamous double seasonally adjusted GDP print – they call it “residual seasonality.”

Then there’s the NY Fed, where researchers recently took to the bank’s blog to explain why, despite all evidence to the contrary, Treasury liquidity is “fairly favorable.”

Be that as it may, someone will occasionally say something really inconvenient – like when, back in April, the St. Louis Fed warned that the American Middle Class was “under more pressure than you think,” a situation the bank blamed on the diverging fortunes (literally) of the haves and the have nots in the post-crisis world.

The implication was that QE was effectively eliminating the Middle Class.”

Opinion: Bingo. In a recent conversation with a liberal family member, the topic turned to the huge gap between the rich and poor.

What is tragically humorous is that the very people complaining about the wealth gap disparity are the same people who voted twice for Barack Obama.

This president resided over the Bernanke Fed and then nominated a clone in Janet Yellen, Bernanke’s successor, to run the most important central bank in the world.

It was Ben Bernanke’s Fed that dreamed up quantitative easing, as a way to save the economy from a depression.

The Fed pumped $4.5 trillion newly printed money into banks. The banks used that money to pump up stocks, bonds and real estate prices creating the largest banking debt ever while MAKING THE RICH MUCH RICHER.

Had the US government let the economy correct naturally, depression and all, we would be coming out the other side stronger and with trillions less in debt.

Yesterday, the Fed announced that after 9 years, it would likely not be raising interest rates even a paltry .25% any time soon. The reason, that they will never admit, is that QE failed and the US economy is so weak, it could not handle the shock – QE 4 is on the way.

Picture debt this way:

huge_86_432919

The result of unsustainable debt provides the ideal setting for a future economic shock:

“When the Lamb opened the third seal, I heard the third living creature say, “Come!” I looked, and there before me was a black horse! Its rider was holding a pair of scales in his hand. Then I heard what sounded like a voice among the four living creatures, saying, “Two pounds  of wheat for a day’s wages, and six pounds of barley for a day’s wages, and do not damage the oil and the wine!” Revelation 6:5-6

Share
Aug 132015
 

flush

Zero Hedge: “Weakness in commodities “is not transitory,” Art Cashin tells CNBC, if you look at things like copper, “this is really a deflationary push… where things can get a little out of control.”

The Fed says they must get off zero interest rates because,, as Cashin notes, “they can’t do anything else.” However, as the venerable floorman who has seen it all explains, they’re in a kind of silly loop where they did QE expecting a reaction… didn’t get it.. and then they did QE again because it didn’t live up to their expectations… but I think they have no other options, if things get negative on the economy, QE is all they can do.

Opinion: Art Cashin is the head floor trader for UBS on the New York Stock Exchange. Cashin is not a headline grabber.

Quantitative Easing refers to the policy of creating or printing money and injecting it into the economy in hopes that the additional dollars will stimulate the economy and cause a growth in employment.

  • QE 1 began in 2008 as the Federal Reserve injected $1.25 trillion into the economy
  • QE 2 began in 2010 as the Fed injected $600 billion into the economy
  • QE 3 began on 2013 as the Fed injected $40 billion per month + $40 billion in a similar maneuver called operation twist until it ended in October 2014.

The Fed’s books are private, but estimates range the total debt created is between 3.5-4 trillion.

The Fed has been saying since October that the economy is improving enough to raise short term interest rates. They have said that at every monthly meeting since QE ended.

Cashin’s prediction of QE 4 indicates that the Federal Reserve should have checked with China, which after two currency manipulations in two days, is now in control of our economy.

“The rich rule over the poor, and the borrower is slave to the lender” Proverbs 22:3.

 

Share

Bloomberg: The Epic China Meltdown

 Bible prophecy, End Times, EU, Finance, QE, US Economy  Comments Off on Bloomberg: The Epic China Meltdown
Jul 112015
 
Bloomberg: The Epic China Meltdown

  Bloomberg News: “The Shanghai Stock Exchange Composite Index has lost 28 percent since its peak on June 12, the worst selloff in two decades. About $3.9 trillion in market valuation has evaporated, more than the total annual output of Germany—the world’s fourth-largest economy—and 16 times Greece’s gross domestic product. The benchmark is still up 82 percent in the past year,

[...]
Share

Mario Draghi Doubles Down On Eurozone Failure

 Bible prophecy, End Times, EU, Finance, National security, QE, US Economy  Comments Off on Mario Draghi Doubles Down On Eurozone Failure
Jan 232015
 
Mario Draghi Doubles Down On Eurozone Failure

Investors Business Daily Op-Ed: “Economics: Despite the opposition of the European Union’s most powerful nation, Germany, the European Central Bank has launched a massive quantitative easing program. It’s not what the stagnant EU needs. Yes, markets rallied on the news, largely cheering the fact that someone, anyone, seems to be doing something about the eurozone’s

[...]
Share
Jan 172015
 
What happened in Switzerland?

Investors Business Daily Op-Ed: “Currency Crisis: The abrupt move by Switzerland’s central bank to remove the cap on the franc-euro exchange rate has created turmoil from Europe to Wall Street. This is what you get when monetary policy runs amok. The move caused an unprecedented 18% one-day surge in the Swiss currency’s value against the

[...]
Share
Jan 052015
 
If QE Works, Why Has It Failed to Kick-Start Inflation?

Zero Hedge: “Quantitative easing (QE) was supposed to stimulate the economy and pull us out of deflation. But the third round of quantitative easing (“QE3″) in the U.S. failed to raise inflation expectations. And QE hasn’t worked in Japan, either. Opinion: Perplexing? Not really. In simple terms, two of the economists in the article have

[...]
Share
n2 sh