Fed May Be Stuck with Forever Stimulus as Exit from QE Impeded
Fed May Be Stuck with Forever Stimulus as Exit from QE Impeded
Rich Miller Mon, October 19, 2020
(Bloomberg) -- The Federal Reserve and other central banks will eventually discover that breaking up isn’t easy after partnering with their governments and the financial markets to avert a pandemic-driven depression.
Investors and lawmakers enamored with cheap money may well balk when monetary authorities try to throttle back their quantitative easing and other stimulus measures.
“They are increasingly on what I call a no-exit paradigm,” Allianz SE chief economic adviser and Bloomberg Opinion columnist Mohamed El-Erian said on a panel discussion last week.
The problem isn’t pressing -- – and in fact is probably one central bankers would be glad to have if it meant their economies were strong.
Instead, faced with slowing global growth and resurgent infections, the focus of policy makers at last week’s all-virtual International Monetary Fund and World Bank meetings was on more support for the world economy, not less. Central banks are pulling out the stops to do all they can, boosting financial markets with massive asset purchases and pushing government borrowing costs to record lows.
Fed Chairman Jerome Powell has repeatedly pressed for more aid to support to the economy until it’s clearly out of the woods. “The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side,” he told business economists on Oct. 6.
The trouble may start after a virus vaccine is approved and distributed and the U.S. and world economies begin to return to normal. If the Fed and other central banks are constrained from scaling back emergency stimulus at that point, the continued flood of liquidity could spur asset bubbles and even too-rapid inflation.
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Emailed to Recaps~ Thank you David
Reset Intelligence: Washington Puts a Price on Dollar Access.
By Reset Intelligence | @EXIT_FIAT
Bessent said the sentence: fuel an Iranian jet, land it, or sell it a ticket, and you are knocked out of the dollar system. At midnight it became the rule.
Riyadh quit China's payment rail. Baghdad rationed its own dollars. Tehran walked into the UN and asked for its accounts back.
Ariel: The “R” Word, are you Ready for the Other Side of this Game?
9-23-2026
The “R” Word?
Say it isn’t so?
Are you saying it’s not a myth?
Are you saying it’s not guru rumors?
Who Is Running The Iraqi Economy? A Series Of Decisions Are Being Made, And The Market Is Paying The Price For The Lack Of Vision.
Last updated: September 22, 2026 In Iraq in recent weeks, questions have been escalating regarding the management of economic and monetary files, with a succession of decisions and measures affecting the banking sector, financial transfers, liquidity, the exchange market, and the movement of funds, at a time when an informed economic source believes that some of these decisions were taken amid the absence of an integrated economic vision or a sufficient explanation of their repercussions on the market.
Good Morning Dinar Recaps,
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"Chuck The Debt In The Fire" Is Officially A Real Solution
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It's so simple, how could no one have thought of this before? The man currently polling in second place to become the next President of France has put forward an ingenious solution to tackling France's national debt, currently standing at around 117% of the country's GDP.
Jean-Luc Mélenchon says, "All we have to do is take the 18% held by the Bank of France and chuck it in the fire."
CBI currency sales drop $18.5B in eight months
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Gold’s Investment Case Has Fundamentally Changed, And Rising Yields Are No Longer A Dealbreaker - FTSE Russell’s De
By Neils Christensen (Kitco News) - Rising bond yields are creating a significant headwind for gold, but investors should be careful about applying the precious metal’s traditional relationship with interest rates too rigidly, as structural changes in global demand continue to support elevated prices, according to FTSE Russell.
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What do you think of when you hear “U.S. dollar”? Is it the cash in your wallet, the balance in your bank account, or the price of a gallon of gas? In these and other examples, the dollar performs the basic functions of money. This is true in the U.S. and in countries around the world, whose governments, central banks, businesses, and investors use dollars to buy, sell, borrow, and lend. The dollar is integral to the financial “plumbing” of the global economy and is the world’s dominant reserve currency.
"It Will Be A Weekend Event" | Bill Holter
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Bill Holter warns that today’s debt and derivatives-driven financial system could be approaching a breaking point.
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Why Gold Prices Could Keep Rising Despite High US Yields And Interest Rates
Analysts expect gold prices to continue rising into 2027.
Updated Sep 21, 2026, 05:56 PM
Gold prices are expected to rise through 2027 despite high US interest rates and bond yields, driven by central bank purchases and concerns over US government debt.
Central banks, especially China, have increased gold buying significantly, with global purchases nearly doubling pre-2022 levels, supporting gold as a safe asset against financial crises.
Good Afternoon Dinar Recaps,
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India’s central bank is rapidly absorbing excess banking liquidity as bond sales, foreign-exchange swaps and rupee management begin reshaping conditions across the country’s financial system.
Iraq/Iran War, Global Currency Reset Update: Holly Celiano
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The global financial landscape is undergoing a profound and highly coordinated transformation. As nations seek to move away from legacy monetary frameworks, a complex web of geopolitical negotiations, economic positioning, and structural reforms is taking shape.
At the center of this evolution are critical developments in Iraq, strategic shifts in South American oil exports, and the operational mechanics of a broader global currency reset.
Emailed to Recaps: Thank you David
Reset Intelligence: The Summit.
By Reset Intelligence | @EXIT_FIAT
Everyone who can end this war landed in one city inside the same 48 hours.
Iran's president needed his enemy's visas to get there. Iraq turned the Iranian planes away at dawn.
Bill Holter: Fiat to Fail, US$180,000 Gold Will Look "Laughably Low"
Investing news: 9-21-2026
Bill Holter of BillHolter.com believes gold's next leg higher has already begun, and its ultimate catalyst is the financial markets themselves. "I think price wise, we're early, Time wise, I don't think there's a lot of time left before we see the implosion of fiats.
The inverse of that is an explosion of prices of everything down to a stick of gum or a cup of coffee," he said. Holter also explains how a gold price of US$180,000 per ounce could be "laughably low" in the long term.
Stephanie Starr: The Gold and Silver Reset, Follow the Math
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Hear me out you guys….
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