Z1 (Overall Credit) Turns Up – Has Deflation Threat Passed?

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Overall credit, as measured by the quarterly Z1 report, turned up significantly in the 3rd quarter for the first time in a few quarters – does this mean the deflation threat passed? Fellow deflationist Vox Day is not impressed – he writes: So, while Z1 reports a quarterly increase of 0.43% in overall credit, the first […]

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Here’s a guest piece by Bud Conrad, who picks apart Bernanke’s latest follies, both at home and abroad, as he continues on his mission to devalue the US dollar in an effort to get the US economy jumpstarted again. (The only question in my mind is not around Bernanke’s motivations – we know them – […]

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We’ve sure seen a lot of QE2 talk hashed around – including some hilarious cartoon spoof videos.  But here’s a unique take from Andy Kessler on Bernanke’s real motivations for QE2, courtesy of the WSJ: I have a different explanation for the Fed’s latest easing program: Without another $600 billion floating through the economy, Mr. […]

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Bond King Bill Gross writes that the Fed’s QE2 announcement will likely “mark the end of a great 30-year bull market in bonds.”  From his latest PIMCO investment outlook: We at PIMCO join with Ben Bernanke in this diagnosis, but we will tell you, as perhaps he cannot, that the outcome is by no means […]

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I think our pal Brian Hunt hits the nail on the head in his DailyWealth piece– he talks about the only thing you need to consider right now when placing a trade: Knowing whether it’s “risk on” or “risk off” is the single biggest factor in any trade you make right now… If you’re long […]

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Today, Bloomberg was quick to post a headline trumpeting the end of deflation: Deflation Disappears With Bond Market Showing Growth Oct. 25 (Bloomberg) — The bond market is showing Federal Reserve Chairman Ben S. Bernanke will succeed in sparking inflation after the smallest gain in core consumer prices in half a century increased concerns that the […]

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Is the Fed Sorry It Promised QE2? October 11, 2010 by Sy Harding, Editor of the Street Smart Report The Fed has had stocks and gold spiking up since early September, and the dollar plunging, first on hints that it might consider providing another round of ‘quantitative easing’ if the economic recovery continued to worsen, and […]

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When can bad news be good news?  Apparently when that bad news indicates the Fed will kickoff QE Part Deux! The loser jobs report from Friday has respondents to a new CNBC survey nearly certain that the Fed is going to step up to the plate in a big way come November. Following Friday’s disappointing […]

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Today, stocks were up again – and on low volume, again.  There is speculation that this surprisingly resilient rally is predicated on bets that the Fed will act to protect the economic recovery – or whatever you’d call this thing! For a look at the wagers being placed on potential Fed action, we turn to […]

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