In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘quantitative easing’

Willem Middelkoop on The Big Reset

Posted by seumasach on October 31, 2014

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Five reasons why the world needs the BRICS Bank

Posted by seumasach on May 4, 2014

Russia and India Report

30th December, 2013

A new development bank that will complement – and compete with – the World Bank and the IMF is on the fast track. Here’s a primer on why the BRICS Bank is a pretty sound idea.

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Money and credit and the current backdrop

Posted by seumasach on April 30, 2014

“Today’s markets would react negatively to any major expansion of central bank Credit from the likes of Brazil, Russia, Turkey, India, Indonesia or South Africa. This market dynamic provides a huge competitive advantage to developed central banks, markets and economies. Increasingly, this competitive advantage along with the destabilizing global role of Federal Reserve “money” are sources of heightened global animosities. More than ever before, EM economies see developed “money” printing as a force for rising inequality”. 

In other words, the ability of Washington and London to “quantitatively ease” is an imperial privilege. However, there is one crucial distinction between this and past forms of imperial exploitation: QE is also impoverishing, through inflation, the whole US and UK populations, outside the 0.01 % elite.

Doug Noland

Prudent Bear

27th April, 2014

Trouble brewing

Over the years, money and the “Moneyness” of Credit have remained focal points of my Macro Credit Analytical Framework. From my perspective, money is fundamentally defined by perceptions. “Money” is a financial claim perceived as safe and a liquid store of nominal value. Understandably, this definition is troubling to monetary purists. Yet in the spirit of Ludwig von Mises and his notion of broad money/“fiduciary media,” my view of contemporary “money” is focused on an array of financial claims and their functionality. 

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Venezuela: raid on Leopoldo López’s headquarters as Maduro cracks down

Posted by seumasach on February 18, 2014

The great about quantitative easing is that at the same time as providing an ongoing bailout of Wall Street it releases speculative funds to drive up food prices globally. This enables further US-backed destabilization campaigns, led by “activists” and cheer-led by the Guardian newspaper,  directed against the worlds “regimes”. But these dollars are now coming home to roost with the promise of hyper-inflation in the homeland. How will our “regimes” respond?

Guardian

18th February, 2014

A crowd of anti-government activists wrested free an opposition politician as he was being hauled away in handcuffs by security forces following a raid on the party headquarters of Leopoldo López, President Nicolas Maduro’s biggest foe.

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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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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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Liam Halligan: At last, a politician who dares to admit that we need ‘full disclosure’ from banks

Posted by seumasach on February 5, 2012

Liam Halligan

Daily Telegraph

28th January, 2012

First Romney learnt that, having “won” the opening Iowa caucus, he actually lost on a recount. In the South Carolina primary, he was trounced by Newt Gingrich after a lacklustre debate performance. Romney then bungled his personal tax return, insisting he wouldn’t make it public for months, then releasing it anyway.

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British pound to reverse course as BoE expands QE

Posted by seumasach on February 4, 2012

The British Pound extended the advance from the previous month to reach a fresh yearly high of 1.5882, but we are going to see the sterling come under pressure next week should the Bank of England take additional steps to stimulate the ailing economy. Although the BoE is widely expected to keep the benchmark interest rate at 0.50%, all of the 50 economist polled by Bloomberg News see the Monetary Policy Committee expanding its Asset Purchase Facility beyond the GBP 275B target, and the central bank may keep the door open to expand its balance sheet further in an effort to stem the risk of a double-dip recession.

This is a rather immodest proposal framed framed in the most modest terms: “Bankers of the realm, do you accept another tranch of newly minted cash in exchange for the worthless assets you are still holding on your balance sheets without daring to mark to market? We do!” reply the blushing bankers in unison, “till death us do part” Thus we will see in the coming weeks the consumation of the marriage between our elected representatives and the City if London. Of course, the BOE claims the money is for purchase of government securities rather than further bailout. They would say that and its hardly good news that we have to print money to sell guilts. Still, this will be at least in part another bailout of the banks, gratefully accepted. It is this money printing prowess that our pundits have been boasting about as the great trump card of the British economy which still has its own currency, unlike the hapless Greeks. Yes, but if we are to devalue our currency in perpetuity why would anyone accept or hold assets denominated in it. they would only do so if they had no choice- if all the other options had been knocked out. Hence the desperate campaign against the euro, but the euro will continue to be a viable alternative and the emerging econo ies are looking into new ways of bypassing the dollar and the pound. The “bearish” forecast is thus more than justified with all the horrors that that entails for an economy totally dependent on imports.

Fundamental Forecast for British Pound: Bearish

Daily Fix

4th February, 2012

 

The British Pound extended the advance from the previous month to reach a fresh yearly high of 1.5882, but we are going to see the sterling come under pressure next week should the Bank of England take additional steps to stimulate the ailing economy. Although the BoE is widely expected to keep the benchmark interest rate at 0.50%, all of the 50 economist polled by Bloomberg News see the Monetary Policy Committee expanding its Asset Purchase Facility beyond the GBP 275B target, and the central bank may keep the door open to expand its balance sheet further in an effort to stem the risk of a double-dip recession.

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Britain in the midst of first double dip since the 1970s

Posted by seumasach on January 22, 2012

Here are the main themes of the UK media’s coverage of our economic collapse: the recession is a “technicality”; it’s all Europe’s fault; things will get better with more QE just like they didn’t last time.

It’s hard to know what to say to this. Britain is a consumer economy or it is nothing. The recession is plain for all to see: all three of my favourite coffee shops in the West End of Glasgow have closed since Christmas. The streets and roads are emptying. This is a downward spiral, a reverse multiplier.

Since our exports to Europe never amounted to much, even with the pound approaching parity with the euro, Europe can hardly be to blame. Of course, hedge funds may be losing bullions speculating against the euro but that is a different matter.

QE did nothing to help last time: it merely generated inflation and gave the financiers a number of ingenuous options such as carry trades to make a quick buck.

As I say we’re a consumer economy or we’re nothing. It looks like nothing. Mired in debt, stuck in homes which can’t sold, overwhelmed by rising prices of food and fuel, facing unemployment and frozen wages, facing cuts in benefits, overburdened by unfair taxation such as the notorious council tax, a virtual poll tax   which hasn’t been introduced elsewhere, facing endless fines for trivial driving or parking offences, unable to afford the exorbitant cost of public transport, watching our business fail as disposable income dries up, wandering around half-empty supermarkets looking for bargains and finding everyone gathering round the reductions shelf, unable to get simple house repairs done and paying through the nose for the failed attempt, buried under a cruel and corrupt benefits system, fighting failing health as the government blasts us with dangerous and carcinogenic radiation. All this only to be told by the media and politicians that everything is fine apart from the Eurozone, to be lied to incessantly by an army of irremediably corrupted experts, to have our intelligence insulted and our pockets emptied. This is Britain before the abyss, blind and befuddled, threatening or hectoring our international partners, hubristic and delusional, smug and stupid, rejoicing in the woes of others whilst seemingly unaware of where we are going. We are going to hell.

Telegraph

22nd January, 2012

This week official growth numbers are expected to show that the economy shrunk by 0.1% in the final three months of last year.

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Money printing in developed economies worries China

Posted by smeddum on November 3, 2010

November 03, 2010

People’s Daily
 

The prospect of more liquidity flooding into the emerging markets due to the further relaxation of monetary policy in developed economies is causing concern in China, which is already under pressure of expectation of long term inflation. 

The People’s Bank of China, the central bank, warned in its report on Nov. 2 that enormous capital may flood into fast-growing emerging economies from developed economies, which are apparently poised to launch more stimulus actions to battle stagnation. As a result, emerging economies are facing mounting pressure of inflation and capital influx. Read the rest of this entry »

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Germany says federal reserve heading `wrong way’ with monetary easing push

Posted by seumasach on October 24, 2010

European Central Bank President Jean-Claude Trichet said that the G-20 made “no particular conclusion” after some members expressed concern about proposals for further quantitative easing in the U.S.

I think the conclusion is that the US plan has been quietly but firmly rejected. What will their next step be? Nice to see a bit of straight speaking from the Germans – they’re becoming increasingly uppety.

Bloomberg

23rd October, 2010

The Federal Reserve’s push toward easier monetary policy is the “wrong way” to stimulate growth and may amount to a manipulation of the dollar, German Economy Minister Rainer Bruederle said.

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