Archive for April 2020
Only Two Possible Economic Outcomes
Last week, I stated that we are entering a time of significant financial transition. While that is clear, the ultimate direction of the transition is dependent on one, vitally important fundamental question. Will the Federal Reserve continue money creation literally from thin air indefinitely until faith in the currency is eventually lost? Or, will the…
Read MoreArtificial Markets and Where We Go From Here
In my view, we are entering a time of significant financial transition. Most financial markets are now artificial. As I’ve discussed, the CARES Act changed the financial rules to allow for even more money creation. Prior to the CARES Act becoming law, the Federal Reserve, the central bank of the United States, could only purchase…
Read MoreFed Policy Getting Even Crazier
Financial and economic conditions continue to rapidly change and evolve as the coronavirus economic restrictions remain in place. While the focus of policymakers is to ‘flatten the curve’ as far as coronavirus infections are concerned, there is another curve that is being discussed far less. But, over time, this curve won’t flatten and will end…
Read MoreUnlimited QE and a Perspective on Stocks
Money creation by the Federal Reserve continues to intensify. As of April 1, the Fed’s balance sheet hit $5.8 trillion an increase of $557 billion in just one week. You read that right; the fed created more than a half-trillion dollars in just one week! (Source: https://www.zerohedge.com/markets/feds-balance-sheet-hits-6-trillion-16-trillion-3-weeks) The Fed officially revived the quantitative easing program…
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