Money For Nothing

Now China … Reasons for Printing Money Abound

"The tightening talk we're listening to is just for public consumption. The whole system of recovery is based on equity appreciation stimulating employment (which it does ineffectively at best). The big central banks around the world are all pumping money in unison. We will always be told that bankers are concernedly moderating money flows. But then, at the first sign of trouble, the taps are turned back on. In fact, they are never REALLY turned off. And there will always be a reason to push the volume of money even higher. They are planning a big Wall Street Party. The top men always seem to find reasons to print more. Until the world is swimming in currency." Continue reading →

Continue ReadingNow China … Reasons for Printing Money Abound

Nobel Winner: “No Reason To Fear Deflation”

"'Historically, there is no reason to fear deflation,' Nobel Laureate Thomas Sargent explains to Germany's Wiwo.de, 'we all benefit from lower prices.' That central banks pursue an inflation rate of around 2%, Sargent blasts, is because they consider it their job to 'make bad debt good debt,' adding that inflation is 'a major redistribution machine - reducing the real debt burden for the benefit of creditors and devaluing the assets of the creditors.' A return to a gold standard,he concludes, to prevent governments and central banks from limitless money-printing 'would not be foolish.'" Continue reading →

Continue ReadingNobel Winner: “No Reason To Fear Deflation”

China puts out yet another credit market fire with more liquidity

"The People’s Bank of China announced that it had injected cash into the short-term credit markets. While the PBOC does that regularly—twice a week via its regular, publicly announced open market operations—the cash injection that it announced today was a different kind of mechanism known as a short-term liquidity operation or SLO. It directs the central bank’s money to 12 large Chinese banks seen as crucial to the stability of the system. That the central bank has been so quick to try to ease stress in short-term markets indicates that policy makers are leery of repeating last-summer’s severe credit crunch." Continue reading →

Continue ReadingChina puts out yet another credit market fire with more liquidity

China credit crisis fears as central bank injects funds

"China’s central bank has rushed to pump money into the stalling banking system but markets across Asia still fell sharply amid fears that the world’s second-largest economy faces a credit crisis. State media in China had reported that the PBOC has unexpectedly pumped $33bn (£20bn) into the domestic money market through what it refers to as 'short-term liquidity operation'. Fears over a looming Chinese debt crisis spurred by a poorly regulated and opaque financial system stoked fears over the summer that the Asian powerhouse could finally be on the brink of a sharp slowdown in growth." Continue reading →

Continue ReadingChina credit crisis fears as central bank injects funds

Fed’s ‘Elixir’ Is Surely a Temporary One

"The idea once was that powerful central bankers would work behind the scenes to make sure that various markets were stable and fair. Nowadays, central bankers work to ensure that markets – especially stock markets – are propped up so that the appearance of an improving economy can be maintained. And far from working in secret, this generation of bankers is desperate to reassure investors that optimal conditions for continued equity gains will be continued. This is, in fact, what the Bloomberg article is telling us. The Fed's magic elixir is simply the ability to assure top investors that they can continue to shovel money into the stock market without undue risk of reversals." Continue reading →

Continue ReadingFed’s ‘Elixir’ Is Surely a Temporary One

Fed to America: ‘QE Scam Will Continue’

"Yesterday, the Fed announced that the scam would continue. In a typical sleight of hand, it took its monthly asset buying down from $85 billion to $75 billion… but also told us that zero-bound interest would keep flowing for even longer than expected. As a card-carrying, asset-owning and secret-handshake-giving member of the 1%, we’re delighted to know that the filthy lucre will continue coming our way. But as a financial philosopher we find the whole show rather shabby and tawdry. Not only does the program shift income from the public to the insiders, it also masks the real problems in the economy and stifles real corrections." Continue reading →

Continue ReadingFed to America: ‘QE Scam Will Continue’

When We Will Celebrate the End of QE, and Why

"Central bank money is disseminated through the banking system. And the banking system over years funnels it into investable facilities like the stock market. It is a criminal system, predicated on rigorous control of money stock. If bankers really wanted to benefit the middle class, they'd pump it directly into bank accounts. But they won't, for that would reveal the essential phoniness of the system and it would also generate vast price inflation. But price inflation they will have nonetheless. By the time bubbles are visible, as they are, it is way too late for the economy to contain the damage. And thus they pretend to cut. Or trim the advance. But markets, especially stock markets, will continue to rise." Continue reading →

Continue ReadingWhen We Will Celebrate the End of QE, and Why

David Stockman: Lunatic Fed Engineering Global Collapse

"Yellen has been part of this Fed system since the 1990s. Just start with the year 2000: The balance sheet of the Fed was $500 billion. Today it’s pushing $4 trillion. That’s an eight-fold increase just in this century. She’s been part of it all along, and if that isn’t monetizing the debt, (then) I don’t know what the word means. It is only the top 1% that has experienced a huge windfall from the serial bubbles that the Fed has created. So, if you go right to the core of what this is all about -- what the Fed’s mission is, what the new chairman of the Fed will be doing and saying, I think we had a pretty good indication that she’s going to take this lunatic policy that we’ve had for years now right over the edge." Continue reading →

Continue ReadingDavid Stockman: Lunatic Fed Engineering Global Collapse

The FED’s New Normal: $900 Billion a Year . . . Indefinitely

"This is the Federal Reserve System at 100 years. The economy is now addicted to an emergency monetary policy. The FOMC has made it clear: the bubble conditions of the financial markets will not deliberately be popped by a return to 2007. This is the new normal -- endless addiction to monetary expansion. Meanwhile, the banks refuse to lend into the economy. They pile up excess reserves. The FOMC clearly does not expect this to cease. That is why $900 billion a year is the new normal." Continue reading →

Continue ReadingThe FED’s New Normal: $900 Billion a Year . . . Indefinitely

How to Build a Huge Bonus in Your Portfolio

"Some commentators are betting that the Fed will begin to taper now, though the big money says tapering will start in March. Tapering, whenever it happens, is not tightening. Tightening is pulling money out of the system. Tapering is simply slowing an out-of-control train to 135 miles per hour from 150. There’s a pileup in the offing either way. No matter what comes of tapering talk this week, one fact will remain unchanged: The Fed will maintain interest rates at or near 0%. And even if tapering does happen this week, the Fed will accompany the move with commentary promising to extend the period in which rates remain excessively low." Continue reading →

Continue ReadingHow to Build a Huge Bonus in Your Portfolio