Comments on: Quantitative Easing and Gold

By: RunToGold Podcast » RTG-9-2009-01-15

RunToGold Podcast » RTG-9-2009-01-15 — Wed, 21 Oct 2009 14:58:54 +0000

[...] RTG-9-2009-01-15The esoteric subject of quantitative easing and how Helicopter Ben Bernanke got his moniker. AudioPlayer.embed("pod_audio_1", [...]

By: Global Quantitative Easing

Global Quantitative Easing — Tue, 30 Jun 2009 23:16:23 +0000

[...] among central bankers including the Bank of England, Japan, Switzerland and the Federal Reserve. Quantitative easing is a tool of monetary policy. The effect is an increase in the quantity of currency without [...]

By: Federal Reserve Will Fail With Quantitative Easing | RunToGold.com

Federal Reserve Will Fail With Quantitative Easing | RunToGold.com — Wed, 27 May 2009 23:14:34 +0000

[...] easing; everybody is doing it like the Bank of England, Japan and even Switzerland. Quantitative easing is a tool of monetary policy. The effect is an increase in the quantity of currency without [...]

By: Adam

Adam — Tue, 24 Mar 2009 21:01:26 +0000

At what price would you buy gold. Right now, there are inflationary and deflationary pressures in the marketplace. Which will win out? And, is not Gold bubbled right now?

Best,

Adam

By: Brian

Brian — Fri, 28 Nov 2008 23:39:54 +0000

From the article …
“The alphabet soup lending facilities (TAF, TARP, etc.) and bailouts by the various governments throughout the world could be considered quantitative easing.”

This is not correct. The TAF and TSLF were not quantitative easing. These were mostly sterilized facilities (until the Fed changed directions in September ‘09) where the Fed was simply taking on credit risk. The TSLF is always fully self sterilizing. The TAF was mostly sterilized by permanent open market operations (sale of treasuries from the Fed’s portfolio).

The TARP was funded via treasury auction, which is obviously not quantitative easing. The new TALF is to be funded via quantitative easing.

The quantitative easing that has been taking place recently has resulted in the dramatic expansion of reserves and thus the monetary base. However, these reserves have not been put to use in our fractional reserve money system via loans or investment. Thus, the narrow money supply aggregates have not been growing yet.

Brian