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by Phoenix Capital Research
After the market’s close on Friday, Jon Hilsenrath at theWall Street Journal released an article implying that the Fed might remove or reduce its QE programs before the year end. The reason this matters is because Hilsenrath is thought to be an unofficial mouthpiece for the Fed. Time and again he’s released articles hinting at the Fed’s future policies in advance. And many believe senior Fed officials such as Bernanke [...] by Phoenix Capital Research
Since 2011, the Fed and other global Central Banks have injected over $2 trillion into the financial system. They’ve also announced plans to continue pumping money ad infinitum. And yet for the period from 2011 until two weeks ago Gold, the inflation hedge of choice for investors, hasn’t done much of anything. Why is this? Part of it has to do with simple sentiment. Gold was overextended in 2011, stretched [...] by Phoenix Capital Research
In 2008, as the financial crisis picked up steam, one by one the big bank Wall Street CEOs came forward to assure everyone that “everything is fine” and that their banks were “well capitalized.”
Anyone who did a bit of actual research knew this was not the case. But a large component of corporate (and political) leadership is to maintain confidence and calm no matter how bad things [...] “This is not a fluke: almost all of the underlying determinants of inflation point to weakness,” writes BofA Merrill Lynch economist Ethan Harris in a note to clients today. For all of the talk of rising government bond yields and predictions for when the Federal Reserve will taper back its bond buying, Harris says, deflation is still a bigger risk than higher inflation – and disinflation could cause the Fed to actually ramp up [...] by Phoenix Capital Research
Europe’s banking system has been on the ropes for years. It’s a little known fact that the largest recipients of US bailouts were in fact foreign banks based in Europe. Also bear in mind that the biggest beneficiaries of QE 2 were European banks. Things got so bad in mid-2012 that the whole system lurched towards collapse. The only thing that pulled the EU back from the brink [...] Did the Bank of England Just Kill the QE Trade? by Phoenix Capital Research In case you missed it, something of major import occurred today. That something is the Bank of England announcing that it is suspending its QE efforts because of questions relating to its “potency.” This is a heck of a statement from a Central Bank. And it’s coming from the one that has even outdone Bernanke’s QE efforts. Since the crisis began, [...] by Phoenix Capital Research
During its first term in office, the Obama Administration thus far has proven itself in favor of increased Government control and Central Planning. That is, the general trend throughout the last four years has been towards greater nationalization of industries (first finance, then automakers and now healthcare and insurance), as well as greater reliance on our Central Bank to maintain our finances.
Last year the US Federal Reserve bought [...] by Phoenix Capital Research
We’re introducing a new component to Gains Pains & Capital: politics. While I’ve stayed out of commenting on the US Presidential elections and politics in general for the most part, at this point so much is riding on public policy globally that we cannot analyze the markets or economy without taking it into account. This new segment will be located at the bottom of our daily commentary. If you [...] Let’s just be blunt here. Inflation is back in a big way. It’s not going to show up in the official numbers, but if you’ve paid for gas or food or healthcare recently, you’ve no doubt noticed that: A) Things are a lot more expensive B) You get way less bang for your buck (food packages are shrinking while prices remain the same) This has been the case for some time now. However, the [...] by Phoenix Capital Research On Thursday last week, the US Federal Reserve announced QE 3: a program through which it will purchase $40 billion in Mortgage Backed Securities (MBS) every month going forward. Given the close proximity of this move to the European Central Bank’s (ECB) “unlimited” bond purchasing program announced the week before, the Fed’s move should be taken as a coordinated Central Bank intervention. Thus, we have both the ECB [...] by Phoenix Capital Research
Swing by www.gainspainscapital.com for more market commentary, investment strategies, and several FREE reports devoted to help you navigate the coming economic and capital market changes safely. The stock market is closed today for Labor Day.
A few thoughts on the preceding week:
The US Federal Reserve disappointed in a big way during its annual Jackson Hole meeting. It was in 2010 that Fed Chairman Ben Bernanke hinted at QE 2, which kicked off [...] by Phoenix Capital Research
Swing by www.gainspainscapital.com for more market commentary, investment strategies, and several FREE reports devoted to help you navigate the coming economic and capital market changes safely. Mr Draghi… a few questions for you…
You say that whatever measure you take… it will be “enough” to support the Euro. Seeing as you’ve already spent over €1 trillion via your LTRO 1 and LTRO 2 schemes only to find that:
The uptick in EU banks [...] by Phoenix Capital Research
The biggest even this week is Ben Bernanke’s Jackson Hole Speech which will take place on Friday August 31. It was at Jackson Hole in 2010 that Bernanke hinted at QE 2. With that in mind, many investors believe that the Fed is about to unveil or at least hint at a similar large-scale monetary program this Friday. We, at Phoenix Capital Research, disagree for three reasons. Number [...] by Phoenix Capital Research
Listen up Mainstream Financial Media, the Fed is not going to announce QE 3. You’ve been running the same tired stupid story after every single FOMC meeting since May 2011, desperately trying to spin everything the Fed says into a call for more QE.
The fact of the matter is that only a handful of Fed members have called for more QE. They are Charles Evans and Bill Dudley, [...] Having observed TBTF via tarp, 11 lending facilities, swap lines, QE 1, 2, lite, twist, ltro 1, 2, and countless ‘programs’ by the BOJ, BOE, rule changes to favor banks, etc etc etc ad f’n nauseum, I still am stunned by the new bank bailouts. Stunned and indignant to be precise. The defacto merging of banks and the state power equates to institutionalized debt slavery. It also smacks of a permanently [...] by Phoenix Capital Research
Between July 2011 and today, the ECB has expanded its balance sheet by an incredible $1+ trillion: more than the Fed’s QE 2 and QE lite combined (and in just a nine month period).
This rapid and extreme expansion of the ECB’s balance sheet (again it was greater than QE lite and QE2 combined… in nine months) indicates the severity of the banking crisis in Europe. You don’t rush this [...] |
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How Bad Has The US Economy Gotten? Fed Easing Is ‘Insurance Policy’ Against Market Collapse And The Fed Announced QE3 And QE4 In Less Than THREE Month!!
Wiedemer: Fed Easing Is ‘Insurance Policy’ Against Market Collapse
The Federal Reserve’s decision to beef up an existing monetary stimulus program may in reality be little more than a move to prevent stock prices from collapsing, said Robert Wiedemer, financial commentator and best-selling author of “Aftershock.”
Standstill: The Charts That Prove The Global Economy Is In Serious Trouble
And That’s Checkmate, Ben Bernanke
by Phoenix Capital Research
Today the US Federal Reserve announced that it [...]