Ben and I are stranded on an island, Robinson Crusoe-like and I, on my east side of the island, have been planting yams, collecting coconuts, and doing a little fishing. Ben decides to hunt on his west side and offers to trade a boar hindquarter for some yams. We negotiate and make a deal: 20 yams [...]
Here is the Fed Open Market Committee’s announcement of November 25, 2008 announcing the implementation of QE1, a $600 billion bond purchase program:
This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial [...]
I’ll have more on this shortly, but the Fed has announced an open-ended bond purchase program (QE3): “… until such improvement is achieved … “
Here is their statement:
Release Date: September 13, 2012
For immediate release
Information received since the Federal Open Market Committee met in August suggests that economic activity has [...]
Here is John Tamny’s take on the possibility of the return to a gold-based monetary standard, and the origins of the Gold Commission. His analysis is excellent though we may disagree on his conclusions about which gold standard would be optimal. This article originally appeared on Real Clear Markets.— JH
Many participants expected that a [new large-scale asset purchase program] could provide additional support for the economic recovery both by putting downward pressure on longer-term interest rates and by contributing to easier financial conditions more broadly. In addition, some participants noted that a new program might boost business and consumer confidence and reinforce the Committee’s [...]
July 26, 2012
The above-the-fold headline of [last week's] Wall Street Journal, “Fed Moves Closer to Action”, signals an impossibly deluded Federal Reserve utterly blind to the damage its machinations are bringing to the U.S. and global economy. Though the Fed’s policies are the single greatest barrier to economic growth, Ben Bernanke, its walking, talking contarian indicator [...]
The Fed’s Open Market Committee meeting is over and they announced that they would do—nothing.
I humbly admit that my guess that they would announce QE3 was dead wrong. Alas. The (other) pundits (most of them) were correct. Occasionally it’s good to be humbled.
Their oracular statement was:
The Committee will closely monitor incoming information [...]
This week’s data builds a further case for a declining economy and likelihood of the Fed doing another round of QE. These data hit all of the Fed’s marks for action: joblessness and unemployment, declining industrial production, low price inflation and possible price deflation, and declining retail sales. These are the things that the Fed [...]
This article is from Michael Pollaro’s The Contrarian Take, the best blog on money supply. Michael measures True (“Austrian”) Money Supply (TMS) each month as the data comes out and provides meaningful measures and interpretations of the data. I urge you to visit his site for his data and his excellent explanation [...]
In the wake of recent market volatility and the Federal Reserve’s Open Market Committee meeting on April 24-25, calls for another round of Fed easing, ”QE3,” have again been stoked. It is worth sorting out the pros and cons of such a move for both the U.S. economy and financial markets.
This excellent article comes from the Mises Institute’s Frank Shostak, a well known Austrian School economist (see below). The charts are unfortunately very small and unfixable. — JH
In a lecture given at George Washington University on March 27, 2012, the chairman of the Fed said that the US central bank’s aggressive [...]