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Posts Tagged ‘impact of quantitative easing’

‘Beggar Thy Neighbor’ Leads to Currency Wars

Posted by Larry Doyle on February 14th, 2013 6:56 AM |

The United States still has an official policy of pursuing a strong dollar, right?

Yes, right, and if you were to believe that, might I interest you in a bridge in Brooklyn?

The simple fact is that five years into our economic crisis, the major economic centers of the world, those being the USA, the EU, and now Japan are all employing the same central bank policy to support their economies. This policy of quantitative easing is an attempt to accomplish a combination of the following, with different emphasis depending on the region:  (more…)

Debt Deal, Our ‘Walking Pneumonia’ Economy, QE3 and More ‘Sense on Cents’

Posted by Larry Doyle on August 1st, 2011 7:40 AM |

What now? What lies ahead on the challenging and winding road filled with clouds and great unknowns that defines our American economic landscape?

The political circus in Washington has clearly taken center stage over the last few weeks. Watching this show has been anything but entertaining and don’t think the theatrics do not harm our economy. They do.

Uncertainty breeds risk aversion and our economy needs people and businesses willing to take risks.

Can we assume that the passage of a bipartisan debt package means we can get back to business as usual and that the economy will rebound? Not so fast. (more…)

Fiddling While the United States Burns

Posted by Larry Doyle on April 8th, 2011 7:45 AM |

Ben Bernanke’s grand economic experiment of quantitative easing is nothing more than a policy of implementing negative real interest rates. That policy may provide support to puff the markets but it also promotes a very real transfer of wealth and income. The simple fact is quantitative easing and negative real interest rates as a formal monetary policy are neither practical nor sustainable over the long haul.

What do I view as a very real and dangerous consequence of Bernanke’s policy? I am of the strong opinion that Bernanke has created a facade behind which many in Washington and around the country continue to “fiddle while the United States burns.” We evidence this fiddling reality in the midst of the petulant and pathetic budget debate ongoing in Washington. While our leaders nitpick over pennies in order to ‘keep the lights on’, the destructive structural deficit our nation faces casts a very long shadow across our nation’s entire landscape. I firmly believe that many politicians have little true appreciation for that reality.  (more…)

The Real Cost of Quantitative Easing

Posted by Larry Doyle on November 5th, 2010 9:49 AM |

Life is ultimately a matter of perspective.

Two people can look at a situation and see decidedly different things. Having been traveling for the better part of this week, I got home late last night to check on how markets closed yesterday. When I saw that equity markets rallied 2 per cent, commodities rose a like amount, and bonds also increased in value, I was not surprised but I was not thinking that I had reason to be cheerful either. I merely raised my eyebrows and went to bed knowing full well that to many people in our nation, these market movements would have little to no impact on their daily lives and immediate futures.

Am I being excessively pessimistic in my assessment? (more…)






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