The hottest Quantitative Easing Substack posts right now

The main job of the Federal Reserve is to help the government borrow money easily and cheaply. This allows the government to spend on various programs, including wars and welfare.
Despite originating to stabilize the banking system, the Fed has faced criticism for not preventing financial crises. Even after its creation, the U.S. has experienced repeated financial problems.
Quantitative Easing, a method the Fed uses to handle money and loans, may need to end. This would help limit government debt and potentially benefit everyday Americans in the long run.

Money creation and quantitative easing are often misunderstood concepts in the financial system, with complex implications for the economy.
Most of the circulating money is in the form of bank deposits, created when commercial banks issue loans, not just by saving money in bank accounts.
Monetary policy, like quantitative easing, impacts the money supply and bank reserves, influencing the real economy by affecting inflation, prices, and economic growth.

Argentina is facing an economic crisis with collapsing peso, soaring inflation, and high demand for US dollars.
The country's central bank has devalued the currency and increased interest rates, but the situation continues to deteriorate.
People in Argentina are scrambling for US dollars, leading to significant fluctuations in the exchange rate.

The Bank of Japan's shift in monetary policy caused chaos in FX and stock markets. The volatility in bond markets led to unscheduled bond-buying operations.
Yield Curve Control aims to keep bond yields in a tight range to suppress yields and maintain accommodative monetary policy. This strategy becomes crucial in Japan with high government debt.
The BoJ is strategically intervening in bond rates, pushing them back down whenever they approach a certain threshold. They aim to maintain confusion and market control.

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The recent market euphoria has set the stage for increased intervention by monetary leaders.
Short squeezes and market dynamics fueled a rapid stock market rally, creating a false appearance of euphoria.
The Great Financial Tightening is expected to bring an end to the latest liquidity surge and reintroduce volatility into markets.

The book 'The Dollar Endgame' argues that the US Dollar's reserve currency status leads to increasing demand for USD denominated assets like government debt.
The book presents definitions of economic terms like inflation, central banks, and monetary policy, but these definitions are criticized for being inaccurate or misleading.
Fiscal and monetary policies are meant to be somewhat independent but coordinated to prevent economic mismanagement.

Forward interest rates are mainly driven by changing economic productivity and sentiment, with the Fed playing a secondary role.
Market sentiment about real future economic activity has a significant impact on interest rates.
Most of the changes in long-term bond yields since 1989 have occurred during Federal Open Market Committee meetings.

Liquidity plays a huge role in markets - it can make them go up or down.
Monetary policy involves managing money supply through tools like open market operations and reserve requirements.
Fiscal policy uses government revenue and spending to influence the economy, like through investments and tax cuts.

The Federal Reserve's recent comments on specific sectors like social media and biotechnology could confuse investors. It's unusual for them to give such specific investment advice since they're not experts in company valuations.
Investors often misjudge the potential of high-growth sectors, leading to inflated valuations. It's essential to remember that picking winners in these markets can still yield excellent results, even if the overall sector is overpriced.
The Fed should act more like an umpire in the financial markets and let investors make their choices. Treating investors as adults means they must face the consequences of their investment decisions without expecting constant guidance from the Fed.