I’m struggling to find a different way to say the same thing again… Ah, the hell with it. The 10-12 month cycle projection is...
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Radio Free Wall Street
Posts Tagged ‘ Money Supply ’
One Dam Metaphor for the 2012 Global Financial System
What do you do when flood waters threaten the dam? If you're the Federal Reserve, you close the floodgates and let the water rise.
Metaphors have an uncanny ability to capture the essence of complex situations. Here is one dam metaphor that dist...
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Casino of The Absurd
Deposit flows into US banking system (apparently from EU) continue at shocking levels. In the liquidity model of the market, there is no way the markets can decline as long as this continues. Meanwhile, the Fed continues to quietly tap the brakes, without explanation or comment, while the US money supply explodes. The Fed...
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Three Charts That Blow the Doors Off any Hope of a 2012 Rally
The centrally-managed rally of March 2009 is over; reality is finally intruding on the manipulation and propaganda.
A good way to generate hate mail is to question 1) Santa's "guaranteed year-end rally" and 2) the notion that market rallies always...
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Jim Rogers: "The Fed is Lying to Us"
Despite statements to the contrary, the U.S. Federal Reserve has continued to pump money into the economy, says investing legend Jim Rogers.
The resulting low interest rates and creeping inflation, he says, are destroying the wealth of millions.
" Bernanke said last August he was keeping...
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The Dearth of Safe Banking Collateral
A chart that few are looking at, explains the concept of the dearth or shrinkage of so called safe collateral in the Euro and USD. The reason is that the Fed and other central banks hold much of it, or it is now encumbered via direct bilateral funding agreements or by sitting at the central bank drawing...
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Europe Headed for a ‘Lehman Moment’
With credit drying up across Europe we may finally see the Eurozone experience its "Lehman moment" - a replay investment banking collapse that triggered the 2008 financial crisis.
Indeed, European banks are having a harder time getting money - part of the fallout from the Eurozone debt crisis...
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Dear Ben: It’s Time For Your Volcker Moment
IN October 1979, inflation was running at more than 10 percent a year, and the Federal Reserve’s gradual interest rate increases weren’t solving the problem. So Paul Volcker, the Fed chairman, dramatically changed how monetary policy was conducte...
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Quiet Desperation
Most savers and investors are experiencing that quiet desperation of which Thoreau wrote. The inflation of the money supply provided by the central banks almost everywhere across the globe has found its way into into financial assets, including bon...
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What Malodorous Plans May Come From Jackson’s Hole
Capital flight out of Europe into the US banking system continues to result in a surge in money supply and a variety of other banking measures. It is causing a cycle where banks are literally forced to buy Treasuries, Treasury yields plunge, mortgage rates fall, and a massive wave of mortgage refinancings causes bank...
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Liquidity Traps and Financial Black Holes
"We are all Keynesians now," indeed. Keynesian policies have pushed the global economy into a financial black hole.
What we are experiencing is Grand Policy Failure on a global scale, a failure best understood by examining liquidity traps and the K...
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Pritchard often overstates matters; but even with that in mind, his latest on the Eurozone is chilling…
Telegraph link
Excerpts:
Yields on Italian 10-year bonds hit a post-EMU high of 5.3pc on Friday. This is not just a theoretical price: the Italian treasury has to roll over €69bn (£61bn) in August and September; it must tap the markets for €500...
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The Ultimate Contrary Indicator: Mainstream Economists
What makes these economists so confident? It can not be the slew of recent negative surprises in economic data, which has led to a plunge in Citigroup's global 'economic surprise index' from about 100 points to almost zero – a three month low....
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Government economists cannot face
when it appears that ALL types of market investments are on the rise (even property-based mutual funds), it is important to observe that there are specific differences in the types of investment categories and that these differences can become hugely s...
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Profiting From Rising Interest Rates
Until very recently, the investors who have been betting on rising T-bond rates have been betting wrong. So if you were one of the early short-sellers of T-bonds, you may have already thrown in the towel. With the meter running, being early doesn’...
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Cullen Roche says that I don’t understand that government bonds don’t fund spending
Seriously.
QuoteMr. Adler is working under the false premise that govt bonds "fund" the spending of the USA. This is false. Govt bond sales serve only as a reserve drain that help the Fed hit their overnight target rate. In a modern economy wh...
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Why The Fed’s Money Creation Hurts The Poor
Well, the alleged purpose of this fiscal and monetary insanity is to ludicrously and tragically attempt to, literally, buy the government out of bankruptcy with all this new money, while simultaneously continuing to pay the half – half! – of th...
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Inflation and Deflation: US Money Supply Figures – We’re Not In Kansas Anymore Toto
Inflation and Deflation: US Money Supply Figures -
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Bank Reserves and Stock Prices
specie, on 07 October 2010 - 01:21 PM, said:
do you have a minute to comment on net free reserves as a leading indicator of stock market
in context with that comment
You mean the trillion the banks have on deposit at the Fed? I've never seen any co...
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Somebody?s Going to Blink
It is getting increasingly obvious that somebody is going to blink in regards to the distortive hyper-stimulus going on around the world. A good candidate for withdrawing excessively accommodation might be China, where the wild things are also running amok, including an 29% increase in the M2 money supply. Seems like China goes though...
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Forgive Me Lord, This is a Big One- Professional Edition
Fed credit rose last week, as the Fed bought GSEs, Treasuries and MBS. These purchases were more than enough to offset declining Alphabet Soup. Total Fed credit has been rising rapidly over the past 7 weeks but is still below the high set in December and April’s secondary peak. At the same time, an...
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Fed Pumping Up But Money Supply Down – Professional Edition
In addition to shrinkage in commercial paper outstanding over the past few weeks, we are also beginning to see sustained declines in money market fund holdings and money supply. It’s too early to say if the drop in reported money supply is a trend. I think the money supply numbers are out of touch...
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Looming Inflation a Matter of Fact, or Faith?
I got this question this morning from a poster over on the Stool Pigeons Wire. Am I correct in stating that regardless of whether or not the new reserves that will be added once the FED purchases the GSE/MBS paper are utilized to increase fractional-reserve lending (at least initially), there would still be substantial...
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SPX and VIX Updates: Bears Running Out of Real Estate
Yesterday, the Fed announced that it will continue to keep interest rates low "until late 2014 or until we all get fired, whichever comes first." The market immediately rallied, as hopeful investors cheered the news that the Fed&nb...
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