Endgame ahead

Archive for the ‘Central Banking’ tag

Best of Bernanke – before the crisis

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Remember the time before the 2008-201x economic crisis?

And that’s the guy who has been running the Federal Reserve for the last decade, printing (“not literally”) trillions of dollars to “benefit” the worlds biggest economy…


Written by mo

July 31st, 2013 at 10:14 am

Posted in Economics,United States

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Fed announces another round of QE

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A few hours ago the Federal Reserve has announced another round of QE, because… you know, it worked so great the last time. And the time before that. And every time they had to extend it. That’s why the US economy is now in such a great shape, they need even more QE. Makes sense, doesn’t it?

This time, instead of buying treasuries, it will be MBS. 40 billion worth, each and every month until… well, who knows? Certainly not chairman Bernanke, because when asked about that minor detail during the Q&A session of the press conference, all he could say was until unemployment rates are at an acceptable level again. No target, no hard figures – we’re making it up as we go.

But to make a long story short, Congressman Ron Paul managed to sum it up within the first 90 seconds:

Update, a day later: While some of the usual suspects are still cheering and the markets (especially Europa and Asia, less so the US itself) were soaring, the first analysts who managed to keep their calm and are actually doing the math came up with some numbers just how bad this will likely end: BofA Sees Fed Assets Surpassing $5 Trillion By End Of 2014… Leading To $3350 Gold And $190 Crude  (hat tip to Bank of America’s Priya Misra)
Hint: Total outstanding public debt of the whole US is currently just above $16 Trillion, or about 3 times what the Fed is expected to have on their books within the next two years.

My projection: This whole debacle won’t turn out the way the Fed/Government/Investors/… are hoping for, instead it’s going to get ugly. Very, very ugly.

Written by mo

September 13th, 2012 at 10:49 pm

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