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

 Bible prophecy, Economy, Finance, National security, New World Order, QE  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


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:


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

Aug 132015


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.



Bloomberg: The Epic China Meltdown

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


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, the most among the world’s major markets.

As shares tumbled, companies rushed to apply for trading suspension. More than 1,400 companies stopped trading on mainland exchanges, locking sellers out of 25% of the market. The China Securities Regulatory Commission also banned major shareholders, corporate executives, and directors from selling stakes in listed companies for six months.”

Opinion: Traders report that the Chinese brokers are refusing sell orders.


Control. I never thought this could happen on such a large scale and at the same time be so obvious . Governments and central bankers are in collusion to control markets.

It is very simple to do if you refuse sell orders, make short-selling illegal and suspend 1400 stocks from trading on the Shanghai Stock Exchange. It also makes it very easy to hide government scandals and their cover-ups when equity markets are being propped up by electronically created money – and the wealthy get much wealthier.

So when the four largest economies and their central bankers (USA, EU, China, Japan – not necessarily in that order) decide to end the bull market party, it will end in a big way:

There are several viewpoints among our readers on the timing of the Black Horse Rider of Revelation 6:5-6, as well as an interesting theory that the black horse has already appeared (The Seven Seals in Prophecy and in History).

And we have different opinions as to whether the rapture is pre or post-trib, but what is becoming abundantly clear is who will set the economic calamities in motion.

The dynamic duo is not Batman and Robin but presidents and bankers.


Mario Draghi Doubles Down On Eurozone Failure

 Bible prophecy, Economy, End Times, EU, Finance, National security, QE  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

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


If QE Works, Why Has It Failed to Kick-Start Inflation?

 Bible prophecy, Economy, End Times, Finance, Jesus Christ, National security, New World Order, QE  Comments Off on If QE Works, Why Has It Failed to Kick-Start Inflation?
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

Dec 312014
“Everything is Awesome” in America? So Says Liberal Writer

The New American: “Everything Is Awesome!” is the title of a recent Politico piece on the American economy by liberal Michael Grunwald. And although it’s not followed by LEGO song lyric “Everything is awesome when we’re living our dream,” some would say he certainly is dreaming. Much like the children’s movie Grunwald seems to be

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