Politics and Religion
well we all knew about quantitative easing
The chart here compares the Dow Jones Industrial Average with the St. Louis Federal Reserve Bank’s adjusted monetary base. It shows the effect of Fed purchases of mortgage-backed and Treasury securities from Fed dealers, whereby the Federal Reserve buys $85 billion total every month from the big banks, hastening the growth in the Fed’s balance sheet to more than $3 trillion.
The central bank has been creating bank reserves out of thin air since September 2008, making it an official enabler to the federal government’s massive fiscal expenditures that now has the federal deficit at more than $16 trillion, with about $6 trillion added since the president took office, more than any other U.S. president combined.
The adjusted monetary base is the sum of currency (including coins) in circulation outside Federal Reserve banks and the U.S. Treasury, plus deposits held by depository institutions at Federal Reserve banks.
You can see how hooked the market is to the central bank’s money printing — the correlation in fact is rather astonishing. It shows the government and the central bank’s power to create money, manipulate market prices, and transfer wealth. The market is powered ahead by a growing strength in corporate profits, too...
http://www.foxbusiness.com/economy/2013/03/04/proof-fed-is-juicing-markets/?intcmp=obnetworkThe central bank has been creating bank reserves out of thin air since September 2008, making it an official enabler to the federal government’s massive fiscal expenditures that now has the federal deficit at more than $16 trillion, with about $6 trillion added since the president took office, more than any other U.S. president combined.
The adjusted monetary base is the sum of currency (including coins) in circulation outside Federal Reserve banks and the U.S. Treasury, plus deposits held by depository institutions at Federal Reserve banks.
You can see how hooked the market is to the central bank’s money printing — the correlation in fact is rather astonishing. It shows the government and the central bank’s power to create money, manipulate market prices, and transfer wealth. The market is powered ahead by a growing strength in corporate profits, too...
