Category: quantitative easing

The Age of Easy Money Is Over

Commentary What began in 2008 and continued for the better part of 14 years appears finally to be coming to an end. The era of cheap money and credit is over. It’s hard to wrap one’s brain around the implications. It will affect all of business life and personal finances. It will dramatically change financial…


Quantitative Easing During COVID-19 Pandemic Contributed to Inflation, BoE Chief Economist Says

“Overly loose monetary policy” during the COVID-19 pandemic may have helped push up inflation to the current level, Bank of England’s (BoE) Chief Economist Huw Pill said on Tuesday. It’s the first time a BoE official acknowledged the central bank’s role in adding to the inflationary pressure after Prime Minister Rishi Sunak said government borrowing…


A Nobel Prize for Moral Hazard

Commentary Our times are stuffed with daily ironies all pointing to the same grim reality: the failure of experts, particularly those in charge of the many systems that manage our lives. And so we wake to another and very important instance of the same. The Royal Swedish Academy of Sciences has awarded the 2022 Nobel…


Inflation Is ‘Increasingly’ Homegrown, Says Bank of Canada Governor

The Liberal government has been calling inflation a “global phenomenon,” but Canada’s central bank governor says that it’s “increasingly” a Canadian affair. “Some of this inflation reflects global developments that we don’t control but inflation in Canada increasingly reflects what’s happening in Canada,” Bank of Canada Governor Tiff Macklem told the Halifax Chamber of Commerce…


Lockdowns, Government Policies Overlooked as Factors in UK Inflation: Experts

While the war in Ukraine is partly responsible for the cost-of-living squeeze in the UK, the bed for high inflation had already been made following COVID-19 lockdowns and years of big government spending and borrowing, experts told The Epoch Times. David Paton, professor of Industrial Economics at the Nottingham University Business School, said he believes COVID-19 lockdowns…


The Fed and the Sound of Inevitability

Commentary  “You hear that Mr. Anderson? That is the sound of inevitability.” – Agent Smith (The Matrix) In the movie Matrix, the hero, Neo or Mr. Anderson, is eventually able to escape from the chokehold of Agent Smith and avoid a collision with an approaching metro train (the “sound of inevitability”). The Federal Reserve, with…


Perma-Bulloney

Commentary  The economy is faltering, and markets are becoming chaotic. In spite of this, the mainstream financial media is busy convincing investors that the bull market is solidly intact. The 10-2 Treasury yield curve inverted on Tuesday, March 29. This inversion occurred for the first time since September 2019. Meanwhile, the 30–5-year Treasury yield spread…


The Failure of Central Banking: Quantitative Easing

Commentary The world economy has been on a perilous road for over a decade. The Global Financial Crisis (GFC) that hit the world in full force in September 2008 led central bankers and the government to issue extra-ordinary measures to stop the financial sector from melting down. Governments, for example, issued blank guarantees to bank…


The End of QE

Commentary After 29 months of operation, the Fed will end its large-scale asset purchase program, or Quantitative Easing, on March 11, 2022. While many believe the end of QE is long overdue as it stoked the inflationary fire, others suddenly find themselves facing uncertainty. Bond investors are becoming increasingly nervous as they fear interest rates…


Quantitative Tightening Won’t Stop Price Inflation

Commentary  Markets reacted badly last week to Federal Reserve chairman Jerome Powell’s statements outlining the Fed’s initial forecast for the coming year. With inflation clearly no longer being “transitory,” with the Consumer Price Index accelerating to 7 percent in December, Powell has turned increasingly hawkish. Apart from seeming to confirm a series of rate hikes for 2022,…