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Entries in Quantitative Easing (15)

Tuesday
Oct212014

ALG's Daily Grind - Why the end of QE produced lower interest rates 

6

Oct. 21, 2014

Permission to republish original opeds and cartoons granted.

Why the end of QE produced lower interest rates
Interest rates are down year over year, yet the Fed has been tapering its bond purchases the whole time.

Cartoon: Ebola czar to the rescue
Obama appoints a czar to combat the outbreak.

ALG files FOIL request to NY state AG on wage prosecution release
ALG's Mehrens: "The New York State Attorney General's inclusion of union organizing activist Kendall Fells of the organization Fast Food Forward in a press release announcing a lawsuit for alleged under-payment of employee wages raises the question of whether the action is advocacy or law enforcement."

Powerline.com: Government case implodes as its former lawyers allege fraud against Holder DOJ
Sierra Pacific Industries. based on DOJ disclosures from former attorneys there: "The United States presented false evidence to the Defendants and the Court [and] advanced arguments to the Court premised on that false evidence or for which material evidence had been withheld."

Wednesday
Sep242014

ALG's Daily Grind - Are traffic cameras becoming public surveillance tools?

6

Sept. 23, 2014

Permission to republish original opeds and cartoons granted. 

Are traffic cameras becoming public surveillance tools?
Is Big Brother already watching? 

Cartoon: EPA Scales of Injustice

Did $3.5 trillion of Fed easing even work?
It is hard to find any discernible difference in mortgage markets before and after quantitative easing.

Daily Caller: Rush Limbaugh's call screener says 'What liberalism has done to black communities is horrific
James Golden: "What liberalism has done to black communities is horrific."

  

Sept. 23, 2014

Permission to republish original opeds and cartoons granted.

Are traffic cameras becoming public surveillance tools?
Is Big Brother already watching?

Cartoon: EPA Scales of Injustice

Did $3.5 trillion of Fed easing even work?
It is hard to find any discernible difference in mortgage markets before and after quantitative easing.

Daily Caller: Rush Limbaugh's call screener says 'What liberalism has done to black communities is horrific
James Golden: "What liberalism has done to black communities is horrific."

 

Saturday
Sep202014

ALG - It's the debt, stupid! 

6

Sept. 19, 2014

Permission to republish original opeds granted. 

It's the debt, stupid!
Household debt has outpaced household median income for almost 40 years, and we're paying the price, the latest figures from the Federal Reserve and U.S. Census show.

Obamacare, the gift that keeps on giving for Republicans
Cancellations, botched exchanges, and rising premiums! Oh my!

Woodhill: Quantitative futility
"Evidence is piling up that the Federal Reserve, which has been conducting a rules-free, 100 percent discretionary monetary policy for the past 13+ years, simply Does Not Know What It Is Doing."

 

 

Tuesday
Jan072014

CEI - Unanswered Questions for Janet Yellen

CEI Experts Available for Comment

 

Washington, DC, Jan. 6, 2013 – The Senate today is expected to confirm Janet Yellen to head the Federal Reserve, despite unanswered questions concerning Yellen's views and plans. Those unanswered questions include: her policies on inflation, quantitative easing, the Fed's conflicting mandates on inflation and unemployment, the needlessly complicated Basel III standards for how much capital banks should keep in reserve, Dodd-Frank implementation and reforms, and more.

Joint Statement by CEI's Iain Murray, John Berlau, and Ryan Young

Questions about inflationary monetary policy, overregulation from Dodd-Frank, transparency at the Federal Reserve and the interplay of all these issues as they affect growth and freedom. We hope our lawmakers will do what they can to hold the Fed accountable and make sure these questions are answered. > View the full list of questions for Yellen


> Interview an expert

> See also: Yellen Pick Shows Left Unconcerned With Value of The Dollar, CEI Analysts Say

Iain Murray

Director, CEI Center for Economic Freedom

Twitter.com/ismurray

John Berlau

Senior Fellow, Finance & Access to Capital

Twitter.com/jberlau

Ryan Young

Fellow in Regulatory Studies

Twitter.com/regoftheday


CEI is a non-profit, non-partisan public policy group dedicated to the principles of free enterprise and limited government.  For more information about CEI, please visit our website, cei.org, and blogs, Globalwarming.org and OpenMarket.org.  Follow CEI on Twitter! Twitter.com/ceidotorg.

Saturday
Jan042014

American Principles In Action - The Only Way to Stop Big Government

American Principles Project

The Only Way to Stop Big Government

APP Chairman Sean Fieler has an op-ed in today’s Wall Street Journal detailing the Federal Reserve’s unprecedented intervention to buy government debt over the last few years. He pinpoints the reason Washington has gotten so big and intrusive — because the Fed has enabled Congress to spend money without consequence. The only way to restore limited government is to end this monetary policy. As Fieler puts it, “If today’s Republicans are going to roll back President Obama’s massive expansion of government, they will need the muscle of the bond market free from the Federal Reserve’s manipulation.” 
 
How can we begin to undo the Fed’s unchecked abuse of its power? Senate Republicans on Monday must vote NO on President Obama’s Fed chair nominee Janet Yellen, to affirm that they are against this big government scheme. Fieler also proposes a congressional resolution to limit the amount of government debt the Fed can accumulate. Only then will Washington have a limitation on what it can spend and do, just as the Constitution designed for. 

Read the article here:
How to Challenge Yellen—and Big Government

(Note: This article is behind a paywall, so for your convenience we have included the full article below.)
 
 
How to Challenge Yellen—and Big Government
Sean Fieler
Wall Street Journal -- Jan. 2, 2014 7:12 p.m. ET
 
'I want to come back as the bond market. You can intimidate everybody." That was James Carville, President Clinton's chief political consultant, talking to this newspaper in February 1993.

When President Clinton backed away from HillaryCare and the rest of his big-government agenda, it wasn't just Democratic losses in the 1994 midterm elections that forced his hand. It was the power of the bond market, a point Mr. Carville understood but Republicans seem to have forgotten.

If today's Republicans are going to roll back President Obama's massive expansion of government, they will need the muscle of a bond market free from the Federal Reserve's manipulation. History suggests that only the prospect of higher and increasingly painful financing costs chastens committed big spenders. A liberated, and consequently less docile, bond market would not only restrain Washington's profligacy, it would also free the Republican Party to refocus on the big ideas and positive vision that made it a global force in the 1980s.
 
No cause unites the Republican Party like the battle for limited government. From Ted Cruz's government shutdown to Paul Ryan's budget compromise with Patty Murray, the political tactics have varied but the goal of limited government has remained the same. The push for limited government even polls well. According to a recent Gallup poll, an overwhelming majority of Republicans, 81%, and a solid majority of Americans, 60%, think the federal government has too much power.

But despite the public's support and Republicans' herculean efforts, the campaign to pare back government has failed both politically and substantively. The federal government continues to grow while Republicans are increasingly derided for their obsession with spending cuts. Far too many Americans now see the GOP as opposing everything and favoring nothing.

The bond market's apparent indifference to the growth of government has made Republicans' sense of urgency about limiting government seem mystifying to many Americans. Trillion-dollar deficits provoked neither a spike in government bond yields nor Wall Street panic. Instead, the bond market actually welcomed Washington's record deficits with a rally, and Wall Street profited. The type of intimidation that Mr. Carville feared was nowhere to be found.

The bond market's reaction, however, is not natural or sustainable. And it is not the inevitable product of the dollar's reserve-currency status, as some would suppose. After all, the dollar was the world's reserve currency during President Clinton's first term, when the U.S. bond market still commanded some respect in Washington. Rather, America's quiescent bond market is a result of Federal Reserve manipulation.

Even with tapering under way and the end of quantitative easing on the horizon, a truly free bond market is not yet in the offing. So long as a threat of the Federal Reserve's bond buying looms, even rising bond yields are unlikely to produce discipline in Washington. Mario Draghi, the head of the European Central Bank, has masterfully demonstrated the power the Fed would have merely waiting in the wings. By standing at the ready to buy government bonds if they decline, Mr. Draghi tamed Europe's bond markets, driving Italian 10-year yields down to 4%, from 7%, as Italian debt-to-GDP, currently at 127%, continued its unsustainable climb.

Monetary policy's dangerous interplay with irresponsible fiscal policy is as old as central banking itself. It was, after all, with good reason that the Federal Reserve Act of 1913 did not permit the Fed to buy government bonds, a restriction that Congress did not clearly lift until 1935. Even then the Fed did not use its power to control the bond market until 1942, and did not abuse it until 2012 by initiating a third round of quantitative easing.

With the economy clearly expanding and the Federal Reserve still unwilling to set the bond market free, the time for Republican action has come. President Obama has made clear his preference for a supine bond market and the big government programs that it will finance. Janet Yellen, his nominee as Fed chairman, has been an outspoken champion of the Fed's bond buying.

Ms. Yellen's vigorous support for quantitative easing gives Republicans a perfect opportunity to oppose the unhealthy alliance between big government and the Federal Reserve. Republican senators should vote against her confirmation, or, better still, make their support for her conditional upon the passage of a resolution capping the growth of the Federal Reserve's already bloated balance sheet. A $4.5 trillion cap and a program to reduce the Fed's balance sheet to $3 trillion by decade's end would ensure continued tapering and an eventual unwinding of the Fed's monetary adventurism.

With the bond market off the sidelines and back on the side of limited government, Republicans could revive their party's Reagan-Kemp legacy: the party of the future, not of austerity. They could then once again advocate new policies, confident that their pro-liberty, pro-growth programs would present alternatives rather than additions to America's already overgrown federal government.

Mr. Fieler, president of Equinox Partners LP, a New York-based hedge fund, is chairman of the American Principles Project, a Washington advocacy group.