quantitative easing

In this compelling episode of 'The Vivek Show,' host Vivek Ramaswamy is joined by Danielle DiMartino Booth, founder of Money Strong, LLC, and a former adviser at the Federal Reserve Bank of Dallas. They dive deep into the inner workings of the Federal Reserve, discussing its policies and their consequences on the global economy. Danielle sheds light on the questionable alliance between Wall Street and modern monetary theory, as well as the Fed's role in the 2008 financial crisis. She also shares her insights on the COVID-19 pandemic, the broken notion of trickle-down economics, and the rise of "unicorn" companies. Finally, they discuss the potential for the next US president to reform the Fed and the importance of strong leadership.

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Time-codes:

00:00:13 - Vivek's focus on reforming the Federal Reserve

00:02:07 - Danielle calls COVID-19 an "act of war" by China

00:05:31 - Danielle's book "Fed Up"

00:07:33 - The broken notion of trickle-down economics

00:08:12 - How Greenspan and Bernanke distorted price signals

00:11:26 - The Dodd-Frank Reform Act and its impact on small banks

00:13:01 - The 2007 Jackson Hole Symposium

00:15:05 - Negative effects of zero interest rates

00:15:48 - Federal Reserve's role in the 2008 financial crisis

00:17:27 - The boom of venture capital funding and "unicorn" companies

00:19:06 - Raising the capital requirements ceiling to $250 billion for banks

00:20:42 - BlackRock's involvement with the Fed

00:21:29 - Interest rates shouldn't have been reduced to zero after the 2008 crisis

00:22:34 - The shadow banking system

00:23:21 - Only one round of quantitative easing needed after Lehman

00:25:00 - Unequal benefits of low interest rates and asset inflation

00:27:04 - Modern monetary theory and its alliance with Wall Street

00:28:35 - Erosion of checks and balances in government

00:29:19 - Federal Reserve should safeguard the value of the US dollar

00:30:21 - Unfilled job openings due to people being paid not to work

00:31:27 - Opportunity for the next president to reform the Fed

00:32:05 - Importance of a market disciplining event

00:32:26 - A single large regulator for the financial system

00:33:22 - Allowing banks to fail without causing widespread

New Zealand Debt Management, the Treasury unit responsible for managing the Government's debt, isn't seeing any notable increase in demand for its inflation-indexed bonds despite high inflation both in New Zealand and overseas.

Speaking in interest.co.nz's Of Interest podcast, Kim Martin, Director of New Zealand Debt Management (NZDM), says you might expect more interest in inflation-indexed bonds when inflation is high. Statistics NZ releases its Consumers Price Index for the March quarter on Thursday, which is expected to show inflation above 7% for the fourth consecutive quarter, at a time when there has also been high inflation overseas.

"Inflation indexed bonds have a coupon that is indexed to inflation so the value of your regular coupon is protected against that high inflation period...We have seen our inflation indexed bonds outperform their generic equivalents over the past couple of years, but we haven't seen any significant change in demand," Martin says.

"We've heard a few rumours about retail demand for inflation protection products, but we really haven't seen anything that's of particular note, which is quite interesting when you think about how topical inflation has become in recent times."

In the podcast Martin also talks about the impact of the Reserve Bank's quantitative easing, through which it bought around $50 billion worth of NZ government bonds, on the bond market and what might've happened without it.

She also talks about how NZDM borrows and repays money, what options it offers for retail investors, how borrowing decisions are made, whether you can trace proceeds from individual bond issues to government expenditure, what currencies NZDM borrows in, who it competes with for investor interest, the importance of registered tender counterparties, the value of strong sovereign credit ratings, and the key risks for NZDM.

You can find all episodes of the Of Interest podcast here.

Buckle your seat belt. Chris Leonard, author of The Lords of Easy Money, explains in searing detail how the Federal Reserve’s years of easy money have led to bank failures, market turmoil, income inequality and more — and why the necessary corrective action is “going to be really ugly.” Major mistakes were made. Now what?

Chris Leonard's book, The Lords of Easy Money, was The Wall Street Journal's Best Book of the Year and a New York Times bestseller.

00:00 - Intro

00:50 - Revisiting Chris's 2021 prediction about bonds and inflation

02:34 - What is the Federal Reserve?

04:21 - What has happened to the US economy since COVID?

06:20 - The monetary base

07:12 - Three ways the Government can throw money around

09:02 - Interest rates and inflation

10:35 - The Fed has grown massively

12:03 - How the Fed buys and sells debt

13:41 - Quantitative easing and tightening

15:05 - What value does the Fed provide to the world?

17:30 - Summary. Thanks for listening!

________________

Chris is a novelist author of financial thrillers.

CRISIS DELUXE

A PRINCE AMONG MEN

Tune in to hear:

- What is “all duration investing” and what behavioral upside might this approach have for investors?

- How can you better organize a bucketing approach to reflect those investments’ time horizons?

- What about the tendency for all time horizons to become today in the face of behavioral pressure - how can we protect ourselves from this?

- Why is the myth that “China owns the USA” constantly perpetuated?

- A lot of people think quantitative easing is just printing money - why is this a myth?

- Are governmental actions, or lack thereof, partially to blame for where we are at with inflation at the moment?

- Are we on the cusp of losing reserve currency status or is this a myth?

- Why does Cullen think there should be more nuance around the “buy and hold” principle?

- What are some pragmatic applications and implications of the financial myths that Cullen has busted on today’s episode?

https://www.pragcap.com

https://disciplinefunds.com

Compliance Code: 1355-OAS-8/1/2022

Investing over the next several years is going to be unlike anything we've experienced in decades. The pandemic triggered a paradigm shift in the economy, politics, and markets that stimulated a rapid economic recovery. This recovery, however, also added fuel to the fire of inflation resulting from a surge in demand for goods whose supply was constrained. As central banks pivot from QE to QT and rate hikes to dampen price pressures, investors should re-evaluate the post-GFC era playbook that might no longer work amidst structurally higher inflation and rising discount rates. Undoubtedly, it's time to go back to the drawing board to reassess the best approach to both defence and offence in a more volatile, changing market. - Ronald Temple, Lazard Asset Management. Earn 0.50 CE/CPD hrs on Portfolio Construction Forum

Paris Marx is joined by Grace Blakeley to discuss how low interest rates and quantitative easing fueled the tech economy’s post-recession growth, why raising them won’t fix the problems that’s created, and whether higher interest rates are the solution to rising inflation.

Grace Blakeley is a staff writer at Tribune Magazine and host of A World to Win. She’s also the author of Stolen: How to Save the World from Financialisation and The Corona Crash: How the Pandemic Will Change Capitalism. Follow Grace on Twitter at @graceblakeley.

Tech Won’t Save Us offers a critical perspective on tech, its worldview, and wider society with the goal of inspiring people to demand better tech and a better world. Follow the podcast (@techwontsaveus) and host Paris Marx (@parismarx) on Twitter, and support the show on Patreon.

Find out more about Harbinger Media Network at harbingermedianetwork.com.

Also mentioned in this episode:

• Grace wrote about how interest rate hikes are used against workers, what we should learn from the Gamestop short squeeze, and how the pandemic has produced closer links between the state and major corporations.
• Benjamin Braun and Adrienne Buller explained the concept of asset manager capitalism.
• In the face of rising inflation, NFT values are down 48% since November.
• High energy prices tend to drive inflation, and Russia and Ukraine are major wheat exporters.
• In the UK, wages are falling at the fastest rate since 2014. In the US, wages are falling when accounting for inflation, after decades of wage stagnation.

Yesterday local shares rose 0.5% after the RBA, in its first meeting of the year, formally ended its quantitative easing program, as inflation rises faster than expected. This was the bond buying program introduced in late 2020, as an emergency measure during the pandemic, which kept bonds anchored near record lows, to help keep borrowing costs for households and businesses low. And as expected, the central bank also held the interest rate at 0.1%. 

Yesterday 10 of the 11 industry sectors closed with gains. However, the market was weighed by losses in materials, as the price of iron ore declined. 

This saw BHP (ASX:BHP), Rio Tinto (ASX:RIO) and other mining stocks among the worst performers. Meanwhile ASX tech stocks were the top performers, as the Nasdaq rebounded and Block (formally known as Square), officially took over Afterpay. Appen (ASX:APX) lead the gains, up almost 8%. Block (ASX:SQ2) and Zip (ASX:Z1P) were also among the top 10. 

The most traded stocks by Bell Direct clients yesterday included BHP (ASX:BHP) and Vanguard ETFs (ASX:VAS) and (ASX:VGS). 

European stocks started February on a positive note, and US stocks rose for the third day, extending the market’s comeback from the sell-off we saw in January. The Dow was up 0.8%, the S&P500 up 0.7% and the Nasdaq up 0.8%. 

Aussie shares are set to open higher. The SPI futures are suggesting a 0.68% rise at the open this morning. 

What to watch today:

• Amcor (ASX:AMC) will report its results today.
• Prospects of rising demand as economies recover, and concerns over tight supplies continue to support the oil market. Oil prices are at 2014 highs and increased 17% in January, which is the strongest gain since February 2021. The price of oil is currently trading higher, above US$88 a barrel.
• Gold prices also edged higher for a second consecutive session, trading above US$1,800 an ounce. Gold lost almost 1.7% in January, mostly due to a general dollar weakness. 
• The copper price also rose amid a weaker dollar.
• Iron ore has rebounded. Spot prices of iron ore are up with rising imports from China. The seaborne iron ore price is over 7% higher, trading at US$138 a tonne. 
• Today at 12:30pm AEDT, the RBA Governor Philip Lowe will speak on the year ahead. The RBA has said that until annual wage growth nears 3%, interest rates won’t be lifted. Annual inflation is between the RBA’s 2-3% target but aren’t too convinced it will stay there. In terms of interest rates, the central bank is not in a hurry to make changes. 

Trading Ideas:

• Bell Potter maintained their BUY rating on Bathurst Resources (ASX:BRL) and have increased their price target from $0.98 to $1.25. BRL last closed at $0.77, implying 57% share price growth in a year. 
• Trading Central have identified a bullish signal in De Grey Mining (ASX:DEG), indicating that the stock price may rise from the close of $1.18. So we may see higher prices at least in the short term. 

"Fed Tightening" is a term we've been hearing a lot lately.  Today, Alex Cabot and Ed Lambert of Birch Run Financial explain the term, and why it's relevant now, at the end of 2021.

The Federal Reserve, or "The Fed," has two main weapons in its arsenal: Short Term Interest Rates and Money Supply.  Alex explains how these two tools can be used to bolster a struggling economy, or, like now, slow the rate of inflation.

Ed explains why this is a relevant discussion now.  Recent policy has gotten us through the pandemic, but now, with the rise of inflation, savers are disadvantaged when you compare them to borrowers.  Also, for Americans living paycheck to paycheck, their wages may not be keeping pace with their bills.  And finally, inflation brings with it the possibility of greater inflation.

Birch Run Website: www.birchrunfinancial.com

Birch Run Financial email: info@birchrunfinancial.com

Birch Run Financial Phone Number: (484) 395-2190

You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.

Or visit them on the web at https://www.birchrunfinancial.com/

Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536

Any opinions are those of Ed Lambert and Alex Cabot and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The examples throughout this material are for illustrative purposes only. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional. Diversification and asset allocation do not ensure a profit or protect against a loss. Past performance is not indicative of future returns. CDs are insured by the FDIC and offer a fixed rate of return, whereas the return and principal value of investment securities fluctuate with changes in market conditions. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Birch Run Financial is not a registered broker/dealer and is independent of Raymond James Financial Services. Birch Run Financial is located at 595 E Swedesford Rd, Ste 360, Wayne PA 19087 and can be reached at 484-395-2190.

Any rating is not intended to be an endorsement, or any way indicative of the advisors abilities to provide investment advice or management.  This podcast is intended for informational purposes only.

Birch Run Website: www.birchrunfinancial.com

Birch Run Financial email: info@birchrunfinancial.com

Birch Run Financial Phone Number: (484) 395-2190

Fiscal Stimulus and Monetary Stimulus, Explained

Since the beginning of the pandemic, we've been hearing about fiscal stimulus and financial stimulus.  Today, Alex Cabot and Ed Lambert of Birch Run Financial break them both down.

Fiscal Stimulus:

• When the government increases spending, cuts taxes, or both.
• Can be measured by "Fiscal Multiplier," or "bang for your buck."
• We've implemented 5 specific cats of fiscal stimulus since the beginning of 2020.
• Returning to normal could be trick and could involve higher taxes on some Americans and businesses.

Monetary Stimulus:

Created through the Federal Reserve's management of interest rates and the money supply

Quantitative Easing

Low interest rates have resulted in TINA - "There Is No Alternative" 

Wealth Effect

This was implemented quickly, but must be stopped slowly.

You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.

Or visit them on the web at https://www.birchrunfinancial.com/

Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536

Any opinions are those of Ed Lambert and Alex Cabot and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The examples throughout this material are for illustrative purposes only. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional. Diversification and asset allocation do not ensure a profit or protect against a loss. Past performance is not indicative of future returns. CDs are insured by the FDIC and offer a fixed rate of return, whereas the return and principal value of investment securities fluctuate with changes in market conditions. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Birch Run Financial is not a registered broker/dealer and is independent of Raymond James Financial Services. Birch Run Financial is located at 595 E Swedesford Rd, Ste 360, Wayne PA 19087 and can be reached at 484-395-2190.

Any rating is not intended to be an endorsement, or any way indicative of the advisors abilities to provide investment advice or management.  This podcast is intended for informational purposes only.

Kamil Kovar, Economist at Moody's Analytics, joins Mark, Cris and Ryan to discuss U.S. and euro zone GDP along with wages. They also discuss Mark's cancelled flight and the big topic was monetary policy in the U.S. and euro zone. 

Quill Intelligence CEO Danielle DiMartino Booth is distinguished by a career on both Wall Street and the Federal Reserve. Long an observer of the financial markets and the economy, she was also a daily business columnist at the Dallas Morning News.

Topics discussed in this conversation include the current state of the economic recovery in the United States, negative rates, central bank digital currencies and quantitative easing. 

Inside this episode

Deborah Tan of the Credit Strategy & Research team explains the effectiveness and risks of quantitative easing in emerging markets, while Matt Robinson of the Sovereign group discusses the uneven economic recovery ahead for emerging markets, common factors affecting lower-rated sovereigns and key metrics and trends to follow in 2022 and beyond.

Related Content

• Moody's Emerging Markets Hub Bringing clarity to ever-shifting credit dynamics across emerging economies.
• Macroeconomics – Emerging Markets: Quantitative easing programs are largely positive, but risks vary across economies Programs launched at the height of the pandemic have helped stabilize domestic bond markets, provide market liquidity, ease the impact of capital outflows and lower long-term bond yields.
• Emerging Markets – Global 2021 Summit: Recovery uneven across emerging market countries and lagging advanced economies Our virtual summit highlighted the widely divergent recovery we expect across emerging markets, with growth slowing as the pandemic's toll casts a long shadow over the global economy.
• Emerging Markets – Global 2021 Summit: ESG risks are greater for emerging markets than advanced, but vary widely Our virtual summit highlighted the heightened ESG risks for emerging markets, with strong governance an important tool to address social and environmental challenges.
• Emerging Markets – Global 2021 Summit: Energy transition risks and strategies vary among different oil-producing regions Oil producers in the GCC have made greater carbon-transition inroads than those in Latin America, whose debts and government revenue obligations are preventing greater efforts to evolve.

Tune in to hear:

- What is Colin’s perspective on the extreme fear and greed that arose throughout the pandemic in 2020? These are constants within the market, but why were they of particular interest in this cycle?

- Are investors primed for misbehavior because of what we went through last year?

- Learn more about Colin’s new book Fed Up: Success, Excess and Crisis Through the Eyes of a Hedge Fund Macro Trader

- Colin believes that both Quantitative Easing and Central Banks have a net negative impact on the global economy. Why does the believe the current policy is failing?

- How can investors balance, or keep in tension, a critique of the fed with the reality that the narrative has frequently left people behind who were angry with the fed?

- There are lots of smart people that think racking up a national debt is relatively inconsequential, but Colin believes that it matters a great deal. What lead him to this perspective?

- How is the fed fueling wealth inequality with their current policies?

- What can we, as a nation, do differently to minimize the wealth gap?

- How would Colin have approached the pandemic differently, from a fiscal approach, if he was in charge of the fed?

- What qualities do great investment thinkers seem to share?

Web: www.colinlancaster.me

Compliance Code: 1795-OAS-6/4/2021

O especialista em multimercados Rodrigo Natali explica o que é e como funciona o Quantitative Easing (QE), ferramenta adotada pelo Banco Central americano de estímulo à economia.

The Hidden Truth About the Federal Reserve and Quantitative Easing with Steven Van Metre | Solomon Investor

Many of you have had questions about how the Federal Reserve truly works in the financial climate that America is in right now, and others have had questions about the structure of quantitative easing- if you are in either of those categories, then today’s episode is perfect for you.  

Special guest, Steven Van Metre, joins me today to discuss the hidden truth about the Federal Reserve and to go into detail about Quantitative Easing.  

Steven has been taking the social media world by storm with his exceptional analyses. He is a macro fund manager, financial planner, self proclaimed Bond King, inventor of Portfolio Shield and President of Steven Van Metre Financial. He specializes in retirement income strategies and the direct management of client assets.  

Steven and I will discuss the Federal Reserve, quantitative easing, and common errors in the typical American’s financial education that enable so many investors to fall into the trap of an over-leveraged system.

Watch the full episode to learn the hidden truth about the Federal Reserve, Quantitative Easing, and to learn how to take control of your investment future.  

Key Takeaways:

Introduction to Steven Van Metre (2:29)

Why does the central bank not know what makes a healthy economy? (4:38)

What are the consequences of the central bank not knowing the basics of a monetary system? (7:15)

What are the risks of the majority of the american people putting so much faith in the Federal Reserve and quantitative easing? (8:53)  

Common errors in the typical american’s financial education (14:27)

Consequences of our economy being “pumped up with fake money” (17:41)  

What does Steve see happening in the next 12 months? (20:58)

What power does the Federal Reserve actually have? (26:32)

What exactly is Quantitative Easing? (29:10)

Key points about understanding the mental framework on Quantitative Easing (40:29)

Why are people staying in an over-leveraged system? (43:56)

--To hear more from Steven Van Metre, click here.  

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-- DISCLAIMER: Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses. No communication by Boron Capital, LLC Inc. or any of its affiliates (collectively, “Boron Capital, LLC™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this episode is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.

All these themes and more is discussed in this month’s Market Outlook in Conversation.

• RBA policy stance and outlook (Chief Economist Bill Evans)
• Business confidence and capacity 10:10 min (Senior Economist Andrew Hanlan)
• Deferred loans and the housing market 13:50 min (Senior Economist Matthew Hassan)
• Q3 CPI review and outlook 17:40 min (Senior Economist Justin Smirk)
• US election: implications for the US economy and FX markets 21:20 min (Senior Economist Elliot Clarke)