Friday, October 23, 2015

Quantitative Easing Rather Than Reform

A policy of quantitative easing (QE) rather than proactive reforms continues throughout the world. While Inflationist view these policies as inflationary, they hasn't been since 1971. After 1971, 'risk-free' securities could be posted instead of cash. The ability to swap debt for cash has held the real money supply in check despite massive QE injections.

Central bankers have become the buyer of last resort and only buyer of long-term bonds. Nobody other than central banks wants them. The the roach motels, you can check in (buy bond), but you can't check out (sell them).

Headline: US futures extend gains on China interest rate cut

U.S. stock index futures pointed to a higher open on Friday following a strong showing from three tech titans in their third quarter earnings and a dovish message from European Central Bank chief Mario Draghi on Thursday.

Futures also extended gains after the People's Bank of China cut its benchmark interest rates. Dow futures gained about 150 points, while Nasdaq futures implied an open of over 2 percent



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