Money For Nothing

Fed’s Williams Says Bond Buying May Exceed $600 Billion

"Federal Reserve Bank of San Francisco President John Williams said the central bank may buy more than $600 billion in bonds by extending its third round of quantitative easing well into next year. The Federal Open Market Committee last month affirmed its decision in September to buy $40 billion of mortgage-backed securities each month without specifying the total size or duration of the purchases. Williams, who holds a vote on policy this year, was among the first Fed officials to advocate open- ended bond buying." Continue reading →

Continue ReadingFed’s Williams Says Bond Buying May Exceed $600 Billion

Inflation at the Currency Level

"M2 money supply includes more than just currency. It also includes demand deposits, travelers checks, savings accounts, time deposits of under $100,000, and balances in retail money market mutual funds. But this doesn't mean cash isn't keeping up with the Fed's money printing. Below is a chart showing the growth of currency in circulation, since 1990." Continue reading →

Continue ReadingInflation at the Currency Level

An assault on living standards set to run and run

"Sir Mervyn King, Governor of the Bank of England, warned this week that the next generation may have to live under the shadow of today's economic correction 'for a long time to come'. The Governor is still as reluctant as ever to concede the central bank's own culpability in the crisis. In his own speech, Sir Mervyn makes a clear distinction between what he calls 'good' money printing of the type the Bank of England is already practising through quantitative easing, and 'bad' money printing of the 'helicopter' variety." Continue reading →

Continue ReadingAn assault on living standards set to run and run

The ‘Red Pill’ Of Economics

"More and more people are starting to wonder if central banks like the Bank of England and The Fed can just 'rip up' the debt that they've bought via Quantitative Easing, and reduce the national debt of these countries with the stroke of a key. Asking this question, and thinking about the implications of it, is the equivalent of taking the 'Red Pill' of economics. If you start thinking about the possibility that the central bank could just rip up a government's debt, with few negative ramifications, then you might start thinking about government finances in a totally new way that makes you uncomfortable." Continue reading →

Continue ReadingThe ‘Red Pill’ Of Economics