In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘QE3’

2014, resumption of the of the global systemic crisis’ « normal » path

Posted by seumasach on February 17, 2014

LEAP 2020

16th February, 2014

The avalanche of liquidity from the Fed’s quantitative easing in 2013, allowed the world before’s tenets to wake up: indebtedness, bubbles, globalization, financialization… But all it took was a slight slowing down in the astronomical amounts injected by the US central bank every month for the rampant crisis, buried under these piles of liquidity, to reassert itself. As anticipated, the method of “resolving” the crisis by accentuating the excesses that caused it is ineffective, causing a crisis squared instead. All the same one can find an actual benefit: time is gained which everyone uses to their best advantage.

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US Fed Chair Janet Yellen reassures Wall Street

Posted by seumasach on February 13, 2014

The Federal Reserve had been purchasing $85 billion in Treasury and mortgage-backed securities per month, but it announced that it would reduce its monthly pace of purchases to $75 billion in January and to $65 billion in February. In her testimony, Yellen reaffirmed that another reduction in the pace of asset purchases is likely to be announced at the next policy meeting in March.

Yellen cannot continue a zero-interest rate policy and continue tapering QE. QE, the systematic devaluation of the dollar, still the world’s reserve currency, has led to rising prices globally and threatens to provoke a global revolt against US finical hegemony. That is why the Fed is tapering and why interest rates will rise at some point in the none too distant future.

US Fed Chair Janet Yellen reassures Wall Street on easy money policy

Andre Damon(WSWS)

RINF

US Federal Reserve Chair Janet Yellen reassured Wall Street in her first congressional testimony Tuesday that the Fed would continue its zero-interest-rate policies into the indefinite future.

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Why is the Federal Reserve tapering the gold market?

Posted by seumasach on January 31, 2014

“In other words, perhaps the Fed understands that a dollar crisis is a bigger crisis than a bank crisis and that its bailout of the banks is undermining the dollar. The question is: will the Fed let the banks go in order to save the dollar?”

Paul Craig Roberts

RINF

30th January, 2014

In former times, the rise in the gold price was held down by central banks selling gold or leasing gold to bullion dealers who sold the gold. The supply added in this way to the market absorbed some of the demand, thus holding down the rise in the gold price.

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Our global banks – still too mighty to control

Posted by seumasach on September 15, 2013

Liam Halligan

Telegraph

14th September, 2013

Lehman Brothers filed for bankruptcy on September 15 2008. The resulting financial meltdown led to the first global recession in living memory, so causing countless job losses and widespread human misery.

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Latent market risks

Posted by seumasach on June 26, 2013

“I believe that key Federal Reserve officials are begrudgingly coming to terms with the reality that the risks of ongoing huge QE outweigh the rewards.”

Doug Noland

Asia Times

24th June, 2013

It was a rout: emerging markets, Treasuries, municipal bonds, mortgage-backed securities (MBS), commodities and even some stocks. The hours leading up to Wednesday’s statement by the Federal Open Market Committee and Federal Reserve chairman Ben Bernanke’s press conference provided good television drama. CNBC’s Rick Santelli offered one of the better rants in a while: “Ben, what are you afraid of?” Mr Santelli returned minutes later with a provocative back and forth with Wall Street Journal Fed-watcher John Hilsenrath.

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Fed blame game leads to QE end game

Posted by seumasach on May 16, 2013

Market Watch

15th May, 2013

The Federal Reserve’s controversial quantitative-easing (QE) program has generated a new round in the “blame game,” and the Fed itself is now forecasting the end game for QE

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Bank of England warns QE could hit sterling

Posted by seumasach on March 20, 2013

Telegraph

20th March, 2013

Bank of England policymakers have warned that more quantitative easing could lead to “an unwarranted depreciation of sterling” if markets interpreted the move as evidence that the central bank was abandoning its commitment to low inflation.

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Negative interest rates – a ruse to ease QE fears?

Posted by seumasach on March 4, 2013

“While American QE has so far amounted to 14pc of annual GDP, with the eurozone’s at 4pc, the Bank of England has made asset purchases (overwhelmingly gilts) out of money created ex nihilo to the tune of 26pc of our national income”.

Liam Halligan

Telegraph

2nd March, 2013

‘I’m sorry Liam, we’re losing you,” said John Humphrys on BBC Radio 4’s Today programme last week. “Oh what a shame, we can’t hear him,” the grand inquisitor continued. “It’s a very bad line.”

Explaining the implications of “negative interest rates” on the UK’s most influential news bulletin is tough at the best of times. Doing so when the communication link between you and the studio drops out, making you incommunicado 15 seconds after you’ve started speaking, makes the task more difficult still

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La géoéconomie des Bons du Trésor U.S.

Posted by seumasach on December 13, 2012

Conscience-Sociale

5th December, 2012

Depuis 2008, Conscience Sociale suit au quotidien les évolutions du marché des Bons du Trésor américain, et publie régulièrement des notes sur ce sujet. Cet intérêt est justifié par le fait que ces Bons du Trésor sont la forme la plus concrète et la plus fondamentale de l’influence mondiale des Etats-Unis. Tout ce qui reste aujourd’hui de la puissance des U.S. réside uniquement dans la capacité de son gouvernement à émettre de nouvelles dettes, qui servent en grande partie à entretenir le budget de la Défense, donc directement l’influence géostratégique mondiale des U.S. Les dettes étant très majoritairement émises sous forme de Bons du Trésor, ces derniers constituent le pilier du “mur dollar” dans le système monétaire mondial actuel.

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QE3 side effects—Asian policymakers fight back

Posted by seumasach on October 25, 2012

CNBC

22nd October, 2012

The troubling side effects of quantitative easing in the U.S. are fast becoming evident in Asia, with policymakers in the region facing increasing pressure to step in and stem the rise in their currencies.

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Chile Echoes Brazil on Currency War as Unchecked Peso Surges

Posted by seumasach on October 25, 2012

QE bails out the banks at home and offloads the crisis onto the Global South

Bloomberg

25th October, 2012

Chile’s ability to depreciate its peso is limited as developed countries and China fight “currency wars” that keep their exchange rates artificially weak, the Andean nation’s Finance Minister Felipe Larrain said in an economic forum yesterday.

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