Economic Data Show Massive QE and ZIRP Failure

The headline Consumer Price Index for November was 0%, which was below the consensus guess of economists of 0.1%. Since the onset of QE3 and 4 in November 2o12, CPI has trended from an annual rate of 2% to now 1%. With the latest CPI data now posted, it’s an opportune time to go back and look at several other economic indicators, including key measures adjusted for inflation to show the growth rate in real constant dollar terms.

ZIRP and QE are Deflationary

The headline Producer Price Index for November was down 0.1%, in line with the consensus guess of economists. What’s going on? Aren’t QE and ZIRP supposed to be inflationary?

ZIRP and the Permanent Slump

Written by Steven Hansen This past week Nobel Laureate Paul Krugman mused: ….. if our economy has a persistent tendency toward depression, we’re going to be living under the looking-glass rules of depression economics — in which virtue is vice and prudence is folly, in which attempts to save more (including attempts to reduce budget …

Another Soft Week Of Economic Data – Seems QE Will Never End

Written by Steven Hansen It came as little surprise that the Federal Reserve announced this past week that QE and ZIRP would continue unchanged. They put the blame squarely on Congress stating bluntly “fiscal policy is restraining economic growth“. The Fed took an additional kick at the government shutdown insinuating that there was not enough …

QE: Banks Skim the System, Stealing from Grandma

Enabled By ZIRP and QE, Banksters Continue Looting Instead of Building Capital by Lee Adler, Wall Street Examiner One of the purposes of ZIRP (zero interest rate policy) was ostensibly so that banks could rebuild their balance sheets through suppressed funding costs allowing them to earn a wider spread and increased profits. Theoretically that would …