Fiscal Policy

The Utter Failure of QE.

As indicated by last week’s extremely weak (+0.69%) 4thQ2015 GDP the economy is weakening. We are in a manufacturing recession. Thursday’s Factory Orders release marked 14 consecutive months of year-on-year decline. One of the problems is that Fed monetary policy (QE) saw too little investment in real assets (plants and other infrastructure) and too much

QE Discussion Misses the Point.

As Fed mouthpieces try to undo the damage done by suggesting that QE would end or be tapered soon, the discussion misses the point. The increase in excess bank reserves parked at the Fed since the start of this year approximates the total of 2013 QE ($85 billion/month.)   Excess bank reserves last week were $1.922 trillion. The