NEWSFLASH: The FedRes Isn’t Stopping QE! Lies and Subterfuge!
- The FedRes announced ending of QE and then the BOJ announced another massive QE. The Yen goes down and the USD strengthened. Asian currencies go down following the Yen. Currency war is raging. The western Illuminati is using their puppet Japan government to support the USD and highly likely buying US treasuries via BOJ.
– - NEWSFLASH: The FedRes Isn’t Stopping QE!
by Sprout Money, via www.zerohedge.com
What has been expected for quite a while has now officially happened. The Federal Reserve stated that it would stop intervening on the market where it has been buying treasury bonds and mortgage-backed securities like there was no tomorrow anymore. The program started at a rate of $45B per month but was upscaled rather fast to $85B per month before being gradually scaled back since the beginning of this year. The Fed’s balance sheet has expanded considerably as you can see on the next chart. (top of post)
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Whereas the total balance sheet of the Fed was less than 1 trillion Dollars by the end of 2008, this has been increasing exponentially and in just the last 24 months the assets on the Fed’s balance sheet increased by 60% to 4.5 trillion dollars. Yellen has kept her promise as she said she’d scale the open-market purchases back if the economy would strengthen sooner than anticipated.
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Even though Quantitative Easing has now officially been stopped, the reaction in the gold price was actually quite muted. Gold bears have been predicting a crash of the gold price as soon as the money-printing stage would be reduced or stopped, but they have been proven wrong as the gold price dropped less than 2.5% on the news and subsequently lost another 3%.
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