Ateneo Professor on Entrepreneurship
Repost from Newsmax by Dan Weil and Kathleen Walter May 19, 2013
Jim Rogers, the legendary investor who now resides in Singapore and head of Rogers Holding may not seek another term. The Federal Reserve bank is pumping up the economy with massive inflows of liquidity. Called as QE, Quantitative Easing, the FED pumps in $85 billion dollars a month to the economy through purchase of bonds and securities.
This massive printing of money is not seen as very positive by many. This is seen as to promote inflation and hurt the rest of America and the world.
Many, including Rogers sees that this QE must end soon, possibly this year (2013)
Showing posts with label QE. Show all posts
Showing posts with label QE. Show all posts
Wednesday, May 22, 2013
Wednesday, September 19, 2012
Faber - US Fed policies will destroy the world economy
Ateneo Professor on Entrepreneurship
From Moneynews by Forrest Jones
The US Fed policies will destroy the world according to Marc Weber of Doom Gloom and Boom.
This subject matter, the QE 3 (quantitative easing 3) has been the subject of several posts all ready. The US Fed under Bernanke will purchase $40 B worth of securities from US banks monthly (inject liquidity) into banking system.
Many economists are aghast over this QE because it weakens the value of dollar, is inflationary. Furthermore, the objective of increasing production activities, and job creation activity is not met.
Why, because the liquidity is merely being spent to buy stocks.
The stock market has been fueled largely, artificially by this Fed policy. But it has revived housing which caused the collapse primarily. The QE has not percolated to the man on the street; it has made the rich richer though.
US Fed policies will destroy the world
From Moneynews by Forrest Jones
The US Fed policies will destroy the world according to Marc Weber of Doom Gloom and Boom.
This subject matter, the QE 3 (quantitative easing 3) has been the subject of several posts all ready. The US Fed under Bernanke will purchase $40 B worth of securities from US banks monthly (inject liquidity) into banking system.
Many economists are aghast over this QE because it weakens the value of dollar, is inflationary. Furthermore, the objective of increasing production activities, and job creation activity is not met.
Why, because the liquidity is merely being spent to buy stocks.
The stock market has been fueled largely, artificially by this Fed policy. But it has revived housing which caused the collapse primarily. The QE has not percolated to the man on the street; it has made the rich richer though.
US Fed policies will destroy the world
Sunday, September 16, 2012
Which is better monetary policy - belt tightening or quantitative easing
Ateneo Professor on Entrepreneurship
In the old days, the IMF prescription is belt tightening. Even in Europe, there are regular protests in UK, Greece and Spain because of budget cuts. In the PHIL, IMF is often seen as oppressive demon because of the bitter medicine: higher taxes, more efficient collection and budget cuts.
For the PHL it worked; it was able to exit the IMF program and is now a donor country.
However, for the rest of the world and it is unfair, as in US more liquidity injection, as it were, putting a distressed patient on more oxygen and IV fluids would be the order of the day. It is termed as QE by Bernanke.
However is liquidity easing working?
Economist Lindsey Piegza of FTN financial says that the QE will not work, unless there is a certainty in about to expire budget and tax cuts on Dec. 3l, 2012. The cuts were still from the Bush era. As for the lawmakers acting on this, there seems to be a lot of inactivity.
The details of the QE was discussed in a previous article. :Profjorgeentrep on Quantitative Easing post
Economist Piegza says QE by Fed will not improve economy much. When will the US lawmakers ac?
In the old days, the IMF prescription is belt tightening. Even in Europe, there are regular protests in UK, Greece and Spain because of budget cuts. In the PHIL, IMF is often seen as oppressive demon because of the bitter medicine: higher taxes, more efficient collection and budget cuts.
For the PHL it worked; it was able to exit the IMF program and is now a donor country.
However, for the rest of the world and it is unfair, as in US more liquidity injection, as it were, putting a distressed patient on more oxygen and IV fluids would be the order of the day. It is termed as QE by Bernanke.
However is liquidity easing working?
Economist Lindsey Piegza of FTN financial says that the QE will not work, unless there is a certainty in about to expire budget and tax cuts on Dec. 3l, 2012. The cuts were still from the Bush era. As for the lawmakers acting on this, there seems to be a lot of inactivity.
The details of the QE was discussed in a previous article. :Profjorgeentrep on Quantitative Easing post
Economist Piegza says QE by Fed will not improve economy much. When will the US lawmakers ac?
Is Quantitative Easing (QE) - Liquidity Infusion good for the US economy?
Ateneo Professor on Entrepreneurship
From Moneynews
Is the Quantitative Easing (US Fed printing money, buying back bonds and treasuries) in effect injecting liquidity into the financial system, good for the US economy?
Donald Trump, a real estate mogul and now an outspoken US citizen thinks QE is giving the stock market false results.
Home buyers are not buying new homes, despite the added liquidity, because banks are not lending anyway. Where is the excess liquidity going into? Foreign investments? Or stock market (maybe offshore) and does not go to intended beneficiary.
Past QE injected $2.3 trillion into the economy: QE 1 Fed bought $1.7 trillion of mortgage backed securities from banks; under QE 2 $600 billion worth of Treasury holdings were bought. Under QE 3, $40 billion worth of securities would be bought monthly from banks to generate more jobs. That extra liquidity, $2.3 trillion is increasing and will increase further. (Many think that gold is at $l,600 per ounce because it has now been the more acceptable currency and no longer the dollar; the dollar has lost its value because of this excessive liquidity )
These moves ie injecting liquidity into the market was done to avert depression; however many think that the amount of infusion is too large and depresses the value of the dollar, and that much of this has been going into welfare like food stamps where 44 million Americans are enrolled. Are they looking for jobs in a jobless economy.
Money News on Trump - Fed causing stock market to give false numbers
From Moneynews
Is the Quantitative Easing (US Fed printing money, buying back bonds and treasuries) in effect injecting liquidity into the financial system, good for the US economy?
Donald Trump, a real estate mogul and now an outspoken US citizen thinks QE is giving the stock market false results.
Home buyers are not buying new homes, despite the added liquidity, because banks are not lending anyway. Where is the excess liquidity going into? Foreign investments? Or stock market (maybe offshore) and does not go to intended beneficiary.
Past QE injected $2.3 trillion into the economy: QE 1 Fed bought $1.7 trillion of mortgage backed securities from banks; under QE 2 $600 billion worth of Treasury holdings were bought. Under QE 3, $40 billion worth of securities would be bought monthly from banks to generate more jobs. That extra liquidity, $2.3 trillion is increasing and will increase further. (Many think that gold is at $l,600 per ounce because it has now been the more acceptable currency and no longer the dollar; the dollar has lost its value because of this excessive liquidity )
These moves ie injecting liquidity into the market was done to avert depression; however many think that the amount of infusion is too large and depresses the value of the dollar, and that much of this has been going into welfare like food stamps where 44 million Americans are enrolled. Are they looking for jobs in a jobless economy.
Money News on Trump - Fed causing stock market to give false numbers
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