Market Snapshot
Podcasts

SEM Podcasts:  


Best of the Blog, 6/15/13 -- Is the Fed losing control of rates?

Best of the Blog, 6/8/13 -- Employment & the Fed

Best of the Blog, 6/1/13 -- Winning the retirement game

Best of the Blog, 5/25/13 -- Why we should be watching Asia

Best of the Blog, 5/18/13 -- Is the Fed really going to taper off QE?

Best of the Blog, 5/11/13 -- How long can the Fed keep this up?

Best of the Blog, 5/4/13 -- Should we sell in May?

Best of the Blog, 4/27/13 -- Our dysfunctional government

Best of the Blog, 4/20/13 -- Market vs. the Economy

Best of the Blog, 4/13/13 -- Is it sundown in America?

Best of the Blog, 4/6/13 -- Did the sequester cause the slowdown?

Debt, Leverage, & Addiction -- Part 1  Part 2   Part 3  

Best of the Blog, 3/23/13 -- Consequences of Perpetual Bailouts

Best of the Blog, 3/16/13 -- Is the Dow's streak a buy signal?

Best of the Blog, 3/9/13 -- Does Goldilocks have any blemishes?

Best of the Blog, 3/2/13 -- What does Sequestration mean?

Best of the Blog, 2/23/13 -- Recency Bias

Best of the Blog, 2/16/13 -- The REAL State of the Union

Best of the Blog, 2/9/13 -- Is the economy causing the outbreak in violence?

Best of the Blog, 2/2/13 -- What are we getting from all this debt?

Best of the Blog, 1/26/13 -- Are we in another bubble?

Sunshine Week, 1/24/13 -- Stuck in your retirement plan

Sunshine Week, 1/23/13 -- The time to buy & hold

Sunshine Week, 1/22/13 -- Keeping things in perspective

Sunshine Week, 1/21/13 -- The Pending Forest Fire

Best of the Blog, 1/19/13 -- What did we learn from our client seminars?

Best of the Blog, 1/12/13 -- Short-term vs. Long-term investing

Best of the Blog, 1/5/13 -- What does the fiscal cliff deal mean for the economy?

Sunshine Week, 9/20/12 - Is America going Backward?

Sunshine Week, 9/19/12 - Opportunities in a tough economy

Sunshine Week, 9/18/12 - Is your 401k safe?

Sunshine Week, 9/17/12 - The stealth depression

History of the Fed, 6/19/12


SEM Presentations:

4th Quarter Economic Update- December 11, 2012

Can the Fed Save the Economy? - September 27, 2012

3rd Quarter Economic Outlook - July 10, 2012

What can we expect the rest of 2012? - April 19, 2012

What will 2012 look like? - January 9, 2012

Are we headed towards recession? - October 7, 2011

What is happening with the economy? - September 26, 2011


Podcast Archive  

 


The Failure of QE2 Print
Written by Jeff Hybiak   
Tuesday, 14 December 2010 07:05

I've been very outspoken about the dangerous game the Fed is playing with the United States economy.  Ben Bernanke is a career academic who happens to be the most powerful banker in the world.  He is experimenting with one of his theories by using the printing press to stimulate economic growth.  He has been completely wrong about pretty much everything, yet he retains his job while more than 14 million Americans are unemployed.

We've already shown via several videos that the idea of Quantitative Easing is a joke and that Ben Bernanke is a liar.  The problem I always had with most career professors is that they refuse to admit when they are wrong.


In case you missed any of our articles on Quantitative Easing, here are a few of them:

The Ponzi Debt Scheme

Steps to Financial Crisis

QE2 Injection Begins Today

QE2 is Finally Here

Bernanke vs. Geithner

What About Our Currency?

In Ben We Trust

Pending Forest Fire


Jobs are not being created quickly enough, especially given the $2 Trillion the Fed has already printed electronically created (remember they are NOT printing money.)

 Housing remains in a depression despite the $2 Trillion the Fed has already printed electronically created.

Even worse, the rate on the 10 year bond is rising rapidly and has been since the Fed prepared to launch QE2.

When you add the Fed printing money to the Forgotten Promises we outlined yesterday, you can see how we are inching closer to a European type debt crisis.  Both the Fed and our elected officials seem to think that spending as much money as possible now will help us grow our way out of debt.  The economy is growing, just not fast enough given the trillions of dollars of new debt that is being added.

With the rise in yields the impact QE2 can have on the economy diminishes.  At some point it will actually be SUBTRACTING from our country's growth.  Interest payments were 14.5% of expenditures in November and our government added another $192 billion in debt in one month.  Chairman Bernanke's theory is that the US will always be the strongest country in the world so he can print, electronically create as much money as it takes.  The bond market is saying he is wrong. 

Moody's is also saying he is wrong.  The tax cut deal was already a bad deal for our children before all of the special interest groups received their tax credits.  Now Moody's is saying they may cut the US Treasury Debt rating from AAA if it becomes law.

Two more pieces of information were out this morning pointing to the failure of QE2.

-Best Buy's 3rd Quarter Profits were disappointing and only slightly higher than a year ago.  It seems that people can buy their "stuff" more cheaply online or at Wal-Mart and/or people finally have filled every room of their house with a flat screen TV.

-Producer Prices rose faster than expected in November at an annualized rate of 3.5%.  This of course is not good news for manufacturers or retailers like Best Buy that already have razor thin margins.  It also can help explain the bankruptcy filings this week by two separate grocery store chains. 

Remember my biggest fear -- inflation in things we NEED (food, energy, etc) and deflation in things we WANT (stuff we buy at Best Buy).

The stock market doesn't seem to care (for now) because the one thing QE has done is inflate stock prices, something Mr. Bernanke said in November was one of their targets. 


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