Money For Nothing

Quantitative Easing Worked For The Weimar Republic For A Little While Too

"Like any addict, the Fed is promising that they can quit at any time, but this month they refused to even start tapering their money printing a little bit. The behavior of the Fed is so shameful that even CNBC is comparing it to a drug addict at this point. Sadly, what very few people seem to understand is that what the Fed is doing is going to absolutely destroy confidence in our currency and in our financial system in the long-term. Yeah, many investors have been raking in huge gobs of cash right now, but in the long run this is going to be bad for everybody. We have now entered a money printing spiral from which there is no easy exit." Continue reading →

Continue ReadingQuantitative Easing Worked For The Weimar Republic For A Little While Too

Everything’s Fixed, Everything’s Great

"Much to the amazement of doom-and-gloomers, everything's been fixed and as a result, everything's great. The list is impressive: China: fixed. Japan: fixed. Europe: fixed. U.S. healthcare: fixed. Africa: fixed. Mideast: well, not fixed, but no worse than a month ago, and that qualifies as fixed. Everything's fixed, because everybody that can create their own money can do so without limit or consequence. It's a perpetual money machine, and that fuels a perpetual growth machine. No limits on credit and debt means no limit on spending. Free money for everyone and everything--it's unbelievably easy. The solution to every problem is at hand: create more money and credit, in ever larger sums." Continue reading →

Continue ReadingEverything’s Fixed, Everything’s Great

Peter Schiff: The Taper That Wasn’t

"The Fed's failure today to announce some sort of tapering of its QE program, despite the consensus of an overwhelming percentage of economists who expected action, once again reveals the degree to which mainstream analysts have overestimated the strength of our current economy. The Fed understands, as the market seems not to, that the current 'recovery' could not survive without continuation of massive monetary stimulus. Mainstream economists have mistaken the symptoms of the Fed's monetary expansion, most notably rising stock and real estate prices, as signs of real and sustainable growth. But the current asset price bubbles have nothing to do with the real economy." Continue reading →

Continue ReadingPeter Schiff: The Taper That Wasn’t

With the end of Fed’s QE in sight, U.S. public says ‘Huh?’

"The Fed's $2.8 trillion 'quantitative easing' program has, among other things, lifted stock prices to record highs, driven interest rates to record lows and put a floor under what had been a reeling housing market. Yet barely a quarter of Americans even know what it is. A poll leading up to the Fed's pivotal decision, expected Wednesday afternoon, found just 27 percent of U.S. adults could pick the correct definition of quantitative easing from among five possible answers." Continue reading →

Continue ReadingWith the end of Fed’s QE in sight, U.S. public says ‘Huh?’

Elizabeth Warren says Janet Yellen a ‘terrific’ choice to succeed Bernanke

"Rebel Democrats on Monday threw their weight behind a growing campaign for Janet Yellen to take over the US Federal Reserve, as their successful revolt against White House pick Larry Summers emboldened those calling for tougher policy toward Wall Street. Investors were betting that Yellen would look more favorably on the continuation of the Fed’s massive financial stimulus programme, known as quantitative easing (QE). Yellen has backed Bernanke in his plans to extend the $85bn-a-month bond-buying programme that is aimed at stimulating the economy and keeping interest rates down. Summers had been perceived as being more critical." Continue reading →

Continue ReadingElizabeth Warren says Janet Yellen a ‘terrific’ choice to succeed Bernanke

Treasury: $238b financial bailout ‘avoided catastrophe,’ only $3b outstanding

"The US Treasury said Wednesday the government’s massive response to the economic crisis five years ago paid off, avoiding a catastrophic breakdown of the financial system. In a report marking the anniversary of the bankruptcy of investment bank Lehman Brothers — which snowballed into the worst crisis since the 1930s — the Treasury defended deploying hundreds of billions of taxpayer dollars to save other banks, major financial institutions and auto companies. While the rescue effort required piling up government debt, it was necessary, said Treasury officials who briefed reporters." Continue reading →

Continue ReadingTreasury: $238b financial bailout ‘avoided catastrophe,’ only $3b outstanding

A Regional FED President Says the FED Is Not Inflating Enough.

"This statement was Big News. It was such Big News that the Wall Street Journal ran a story on it. Why? Because when a regional Federal Reserve Bank president says the obvious is Big News, it means that he is opposed to tapering. It means that he thinks the counterfeiting of a trillion dollars of digital money a year is for wimps. What should the rate of counterfeiting be? He did not say. They never say. Their lips are sealed. This is what is known at the Federal Reserve as transparency. Opaqueness is when an official says something incoherent, which everyone in the media knows is incoherent, and they dutifully report as meaningful." Continue reading →

Continue ReadingA Regional FED President Says the FED Is Not Inflating Enough.

Inside Scoop on the Next Fed Chairman

"Davita Vance-Cooks is not a household name. But this will soon change. Not only will Ms. Vance-Cooks be 'the first female and the first African-American' (as The Washington Post would say) to run the central bank, but she will be the first chairman with printing experience outside the Fed itself. She is currently the public printer of the United States — as the head of the U.S. Government Printing Office (or GPO) is officially known. Before that, she had been 'acting public printer.' (The fact that she was acting did not make her less of a real public printer.) Ms. Vance-Cooks’ printing experience will be very useful at the Fed." Continue reading →

Continue ReadingInside Scoop on the Next Fed Chairman