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Tag Archives: QE

No Happy Ending for Investors in Central Bank Fairy Tale

Ah yes, all the hokus pokus is less magic and more smoke and mirrors. Some of us have said this for a long time. But in the wake of Japan falling back into recession, Europe’s continued depression, China’s slowing, and the ongoing troubles in the United States one gets the sense that on some level the grand poobahs of central banking are just tired. The act can only go on for so long. Sooner or later it has to end. Really the Bank of International Settlements, the central bank of central banks turned on the lights earlier this year.

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Our Economy’s Real Problem: The Fed’s Easy Money

There is distortion and malinvestment throughout the world economy. It’s everywhere. From Japan to Europe to China to South America to the USA and beyond the economy is misfiring thanks to the massive monetary experiments of the world’s central banks of the past 6 years. (And even before that.)

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Where $1 of QE Goes: The Untold Story

One thing is for sure. Pretty much none of it is finding its way to “Main Street.” Many QE dollars have however found their way into the bank accounts of those who were already rich. Read More

Why is tiny Belgium buying Treasuries by the truckload?

No one really knows outside of the Federal Reserve and probably the European Central Bank. But Peter Schiff has some thoughts on the sudden and vastly increased demand from Brussels. He thinks that the the Fed’s supposed reduction in bond buying (QE) is actually being replaced by an increase in European buying, keeping yields down and so too concern.

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Malinvestment: “Today’s asset bubbles in stocks, junk bonds, housing, art, bat guano futures, etc. are being driven by the Federal Reserve”

Malinvestment is a very important concept to understand. It simply means the allocation of capital in ways which appear to be (and may be) rational in a period of artificially cheap credit, but in ways which in the end prove to be inefficient once the market corrects for artificially low rates. (Created by a central bank.) Malinvestment is a symptom and a driver of economic bubbles.

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