Investors understand that the Federal Reserve’s ongoing purchase of U.S. Treasuries in the open market, known as quantitative easing two (QE2), injects newly created money into the U.S. financial system and economy, but the actual means by which newly created money monetizes U.S. government debt...
Posted to
Hera
by
Ron Hera
on Mon, Feb 21 2011
Filed under: Federal reserve, deflation, debt, inflation, USDX, M3, Hyperinflation, Bailouts, QE2, U.S. Treasuries, QE, S&P500, M1, economic collapse, M2, money supply, Primary Dealers, Ben Bernanks, U.S. federal budget deficit, Nasdaq, Dow Jones Industrial Average
One of the most famous quotations of Austrian economist Ludwig von Mises is that “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit...
Posted to
Hera
by
Ron Hera
on Wed, Jun 2 2010
Filed under: US dollar, deflation, debt, inflation, GDP, M3, Hyperinflation, Ponzi scheme, unemployment, mortgage delinquencies and foreclosures, U-6
Ben Bernanke, Chairman of the US Federal Reserve, faces a Sisyphean task because US banks are experiencing debt deflation and, because lending is now at much lower levels, monetary deflation is encumbering the domestic US economy as existing debts continue to be serviced. Government deficit spending...
Posted to
Hera
by
Ron Hera
on Wed, Mar 10 2010
Filed under: Federal reserve, US dollar, CPI, deflation, debt, inflation, GDP, central banks, money supply, US economy, central bank, M3
The US economy has been in crisis since 2008 and despite optimistic statements by officials and commentators there are no fundamental signs that the crisis will end in the foreseeable future. Current economic data suggests a number of diverging and unsustainable trends. The US economy has suffered a...
Posted to
Hera
by
Ron Hera
on Sun, Oct 11 2009
Filed under: Federal reserve, S&P 500, US dollar, CPI, deflation, debt, inflation, GDP