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Posts Tagged ‘will there be a QE3’

Why Might The Fed’s Party Be Over?

Posted by Larry Doyle on June 20th, 2011 8:07 AM |

Over the last few years I have highlighted the fact that the deflationary impact of declining wages and home values gave cover to the Federal Reserve for maintaining an excessively easy monetary policy and pumping up asset prices via quantitative easing. That party would now seem to be over. Why?

There is no doubt that Fed chair Bernanke’s easy money has played an integral role in the inflation we are experiencing at the pump, in the supermarket, and across a number of other commodities.

As we continue to navigate the U.S. economic landscape circa 2011 and beyond, the ongoing decline in home values in many regions of our nation now would seem to be setting the table for an inflationary spike in housing costs. How so? What is going on here?  (more…)

Consumers Shift to Online Shopping: What Does It Mean? How Do We Measure It?

Posted by Larry Doyle on May 5th, 2011 8:58 AM |

With gasoline prices running upwards of $4.00-4.50/gallon, we should not be surprised that consumers are changing behaviors. How so? Let’s go online. In fact that is exactly what more and more consumers are doing as the Financial Times highlights, High Petrol Prices Fuel Jump in Online Shopping,

Online shopping grew by its fastest rate in nearly four years in the US last month as rising fuel prices prompted Americans to cut trips to malls and buy on the internet instead, according to MasterCard Advisors.

US consumers spent $13.8bn online last month, a 19.2 per cent jump from April last year, according to the SpendingPulse survey, which is based on spending on MasterCard credit cards and estimates of other forms of payment.

The increase is likely to outpace sales growth at bricks-and-mortar stores, due to be released on Thursday. The consensus of economists’ forecasts is that sales at stores open a year or more rose 7.7 per cent in April.

While consumer behavior changes, are we supposed to blindly accept the traditional methods of capturing and measuring retail purchases? Why should we be so archaic in this day and age? Why should we be so trusting of entities which will “tell us what they think we need to hear” and sugarcoat it in the process.  (more…)

David Galland’s Crystal Ball Post QE2

Posted by Larry Doyle on April 12th, 2011 8:26 AM |

What does the future hold?

I believe the future of our nation, the world, and markets at large have NEVER been faced with the level of uncertainty as they currently face. Debt ceiling? Housing? Unemployment? Inflation? The health of our banking system? Integrity of our government reports? International civil strife? There is no rest for the weary.

Ben Bernanke and his minions at the Federal Reserve have masked the underlying destructive impact of the debts strangling our economy and the subsequent impact on our economy via the Fed’s quantitative easing programs. With QE2 scheduled to end in June, then what?

Our Sense on Cents Economic All-Star John Mauldin highlights an interview that David Galland, Casey Research partner and managing editor of The Casey Report, gave to the International Speculator, in which he provides immediate and long term projections resulting from the end of QE2. This interview is lengthy but riveting. For those interested in the markets, our economy, and our future, it is a MUST READ!!  (more…)

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