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Tag Archives: Quantitative Easing

Financial war takes a nasty turn

Goldmoney Staff .  May 05, 2022 The chasm between Eurasia and the Western defence groupings (NATO, Five-eyes, AUKUS etc.) is widening rapidly. While media commentary focuses on the visible side of the conflict in Ukraine, the economic and financial aspects are what really matter. There is an increasing inevitability about it all. China has been riding the inflationist Western tiger for the last forty years and now that it sees the dollar’s debasement accelerating wonders how to get off....

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Why Won’t the Fed Be Able to Shrink Its Balance Sheet?

Earlier this week, Federal Reserve governor and vice-chair nominee Lael Brainard indicated the central bank will shrink its balance sheet at a “considerably” more rapid pace than it did during the previous cycle. I, Peter Schiff and a few others outside the mainstream have said the Fed won’t be able to do this.Why not?The Fed first expanded its balance sheet in the wake of the 2008 financial crisis. Through three rounds of quantitative easing (QE), the Fed expanded its balance sheet from...

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Quantitative Easing Has Seemingly Ended (for now)

Breaking Down the Balance SheetIt’s finally here. QE has pretty much come to an end as the Fed added only $9B to the balance sheet during March. This was accomplished with moderate purchases of short- and long-term debt, while 5–10-year notes had a $20B runoff. MBS (light green) was surprisingly quiet with a net $2B runoff, but this disguises the typical volatility seen in MBS weekly purchases.As shown in the table below, the Balance Sheet now stands at $8.94T down from the record $8.96T...

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Peter Schiff: How Long Before the Fed Has to Turn Japanese?

Is the US about to go the way of Japan?The Japanese yen tanked after the Bank of Japan vowed to buy an unlimited number of Japanese government bonds in order to hold the 10-year yield under its 0.25% target.This is literally quantitative easing infinity. If the central bank is going to buy an “unlimited” quantity of bonds, that means it will create an unlimited quantity of yen out of thin air.No wonder the yen tanked.The Bank of Japan followed through, buying just over $500 million in...

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While Talking About Fighting Inflation, the Fed Continued to Expand Its Balance Sheet

Earlier this month, the Federal Reserve launched its first salvo against inflation, raising interest rates by a quarter-percent. It was a pretty weak shot given 7.9% CPI, but Jerome Powell and other Fed presidents ratcheted up the tough rhetoric last week. Powell raised the possibility of 50 basis-point rate hikes at future meetings and San Francisco Fed President Mary Daly, “With the labor market so strong, inflation, inflation, inflation is top of everyone’s mind.”But while the Fed was...

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What Happens If the Fed Takes Its Thumb Off the Housing Market?

We talk a lot about how the Fed keeps its big fat thumb on the Treasury market. But it also has its big fat thumb on the housing market. And if the Fed really does follow through with its taper and its plans to shrink its balance sheet, it will have a big effect on the housing market.If you’ve ever held something under tension down with your thumb and suddenly release it, you know what happens.Pop!As of October 2021, housing prices had skyrocketed over 18% year-on-year. Housing prices are...

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It’s Taper Time! But so What? SchiffGold Friday Gold Wrap Nov. 5, 2021

The Federal Reserve wrapped up its FOMC meeting on Wednesday and finally announced the much-anticipated QE taper. The Fed will cut its bond-buying program by about $15 billion a month. But so what? In this episode of the Friday Gold Wrap, host Mike Maharrey digs into the Fed announcement and raises some very important questions.The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the...

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The Taper Is On

The Federal Reserve wrapped up its November FOMC meeting on Wednesday and finally did something other than talk. The central bank announced it will begin to taper its massive quantitative easing program. Since the onset of the coronavirus pandemic, the Fed has purchased roughly $120 billion on Treasuries and mortgage-backed securities every single month, injecting trillions of dollars in newly “printed” money into the economy. Beginning later this month, the Fed will taper bond-buying by...

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Peter Schiff: The Fed Is Destroying the Foundation of the Economy

The Federal Reserve held its September Federal Open Market Committee (FOMC) meeting last week. While there was a lot of talk about the central bank tapering its quantitative easing program, the Fed didn’t announce any concrete plans to slow asset purchases. The lack of concrete action was no surprise to Peter Schiff. After the Fed meeting, Peter appeared on NTD News to talk about it and the Fed’s apparent reluctance to take any concrete steps toward monetary tightening. He said the...

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The Headline I’d Write: SchiffGold Friday Gold Wrap Sept. 24, 2021

The Federal Reserve wrapped up another FOMC meeting with a whole lot of talk and very little action. Interest rates remain at zero and quantitative easing continues unabated. The mainstream headlines are all focusing on the prospect of QE tapering. In this episode, Friday Gold Wrap host Mike Maharrey explains why he’d write a completely different headline about this Fed meeting.The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled...

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