Wednesday, September 11, 2013
- (Chart of the Day)
The Fed’s supposed to work towards maintaining an environment of maximum employment and price stability.  Taken together with wild swings in commodity prices over the past 5+ years, it’s clear that Fed policy is failing…on both fronts.   

- (Chart of the Day)

The Fed’s supposed to work towards maintaining an environment of maximum employment and price stability.  Taken together with wild swings in commodity prices over the past 5+ years, it’s clear that Fed policy is failing…on both fronts.   

Monday, October 22, 2012
It has been a little over a month since the Fed announced QE3; investors are already looking for an expansion to the program.  It’s becoming clear that monetary easing has lost much of its effectiveness.  Could we soon witness the popping of the moral hazard bubble, as investors realize that the Fed doesn’t always win?  
Caution is warranted.  The parallels between the U.S. and Japan are uncanny.  

It has been a little over a month since the Fed announced QE3; investors are already looking for an expansion to the program.  It’s becoming clear that monetary easing has lost much of its effectiveness.  Could we soon witness the popping of the moral hazard bubble, as investors realize that the Fed doesn’t always win?  

Caution is warranted.  The parallels between the U.S. and Japan are uncanny.  

Thursday, October 4, 2012 Monday, September 24, 2012 Monday, September 17, 2012 Thursday, September 13, 2012 Wednesday, September 12, 2012 Thursday, August 30, 2012
In 2010, the last time the Fed launched a bond-buying spree in an attempt to boost the flagging U.S. economy, many of the hundreds of billions in excess dollars went in search of better-paying returns in other currencies. This prompted an international backlash against the U.S. while foreign governments tried various tricks to anchor their ascending currencies and restore their exporters’ lost competitiveness. Brazilian Finance Minister Guido Mantega characterized it as a “currency war.” 
Bernanke responded to his foreign critics by declaring that the dollar’s weakness was a byproduct, not the intent, of Fed policy. Interventionist central banks should stop meddling with their currencies and instead worry about domestic inflation, he would say. That was all very well in theory, but developing countries weren’t buying it. Here they were, earnestly pursuing U.S.-recommended free-market policies, and now it seemed the Fed itself was deliberately flooding the world with dollars to lower the greenback’s value. They felt they had no choice but to fight back. (via QE3 and the looming currency war - Michael Casey’s FX Horizons - MarketWatch)

In 2010, the last time the Fed launched a bond-buying spree in an attempt to boost the flagging U.S. economy, many of the hundreds of billions in excess dollars went in search of better-paying returns in other currencies. This prompted an international backlash against the U.S. while foreign governments tried various tricks to anchor their ascending currencies and restore their exporters’ lost competitiveness. Brazilian Finance Minister Guido Mantega characterized it as a “currency war.”

Bernanke responded to his foreign critics by declaring that the dollar’s weakness was a byproduct, not the intent, of Fed policy. Interventionist central banks should stop meddling with their currencies and instead worry about domestic inflation, he would say. That was all very well in theory, but developing countries weren’t buying it. Here they were, earnestly pursuing U.S.-recommended free-market policies, and now it seemed the Fed itself was deliberately flooding the world with dollars to lower the greenback’s value. They felt they had no choice but to fight back. (via QE3 and the looming currency war - Michael Casey’s FX Horizons - MarketWatch)

Monday, August 27, 2012
Could partially explain continued weakness in consumer confidence.  Supply side shocks, coupled with expectations of monetary stimulus are sending gas prices to dangerous levels.  

Could partially explain continued weakness in consumer confidence.  Supply side shocks, coupled with expectations of monetary stimulus are sending gas prices to dangerous levels.  

Wednesday, August 22, 2012 Tuesday, August 21, 2012 Wednesday, July 25, 2012
Thursday, July 19, 2012
Food prices remain high and funny money is flowing.  If China were to unleash another powerful stimulus similar to 2008/2009, rising food prices would weaken the communist party’s power.  
To be sure, China is stimulating, but they have much less political will to do so this time.  Recognition delay is much longer than before as lawmakers feel the effects of this chart.  

Food prices remain high and funny money is flowing.  If China were to unleash another powerful stimulus similar to 2008/2009, rising food prices would weaken the communist party’s power.  

To be sure, China is stimulating, but they have much less political will to do so this time.  Recognition delay is much longer than before as lawmakers feel the effects of this chart.  

Tuesday, June 26, 2012

Fascinating Fed Charts, 1915-2012

laliberty:

Via LvMI, more interactive charts here: assets and liabilities.

(Source: laliberty)

Thursday, May 24, 2012