Why The Fed Will End QE On Wednesday.

Hello ATS,

So, the punch-bowl of free money is about to end; or so Zerohedge is suggesting.

Quantitative Easing definition (Wiki)

The Federal Reserve may pull the final dipper out of the punch bowl, leaving a well accustomed $85 billion dollars a month out of the market.

When you ask? Wednesday the 29th of Oct (Today here for me in a few minutes) is the FOMC meeting, where they will decide and announce their decision(s).

Much of the current market highs are, in part, due to this abundance of extra liquidity. With the announcement that it's going "bye-bye", could lead to a very ugly drop, as it's back to the "old" market, without the free booz. (Yes, back to BYOB)

With all the news that "The recovery is going wonderful", I think this would catch many a person un-prepared, ill equipped, and behind the 8-ball in many ways.

It is very likely that if the Federal Reserve decided to keep its current pace of bond purchases in place it would likely be interpreted that the economy is indeed not as strong as the statistical headlines suggest. Such an interpretation could lead to a repricing of risk, and a sharp decline in asset prices, that would potentially destabilize consumer confidence. This is not the outcome that the Federal Reserve is looking for.

Zerohedge article (Source)

Give the article a read, there is even some delightful graphs in there, for those that like graph-pr0n.

Certainly something to think about, tho quite hard to prepare for, at this time now.

Thoughts, ATS?

a reply to: Cygnis
I can't read it at the moment. But question, why now? Why not wait until after the election or will it take that long to have an effect? Curious. It should have happened a long time ago.

a reply to: StoutBroux

Maybe to suspend the elections?

a reply to: Cygnis

People need to understand what the liars are actually doing. By printing money they are devaluing the currency the countries that loaned the US money are getting back pennies on the dollar. When this money comes out of the money supply it is called inflation. Countries have stopped buying US debt in mass and now we have silent buyers from Belgium buying it up..........It is actually the US buying it's own debt.



Also look at what the US was buying.........They want the land and using loans and taxes they have fulfilled this. The stock market is a flat out lie. A companies actual worth means nothing they sold us all out for money and power.

Either way it goes we are clearly painted into a corner. No more QE(infinity) and the market corrects from its over valued level. Keep QE (infinity) going and we have to admit our insolvency (like everybody can't see the elephant in the room already). The QE simply stops us from hitting the wall sooner than later by allowing the creative accounting for the ponzi scheme to continue. Anyone who thinks the elections will make a difference one way or the other is also mistaken. Politics, like our economy and democracy is dead. Things will most certainly get worse before they get better. Not enough people talking about the Swiss referendum to challenge the price of gold in about thirty days. Could be the final nail in the coffin for the petro dollar. Only time will tell.

Economic DOOM is always end of September to end of October. Always.

I've never been able to glean the reason but there must be something to it.

This is not good news and I don't trust Janet Yellin any more than I trusted the two puppets before her.

Less, actually.

Have you people ever watched the Federal Reserve Chairman give testimony to Congress on C-SPAN? It's like a horror movie without the makeup.

Well it's not like it has been hard to see the end coming but impossible to get the crooks to admit it .Oh and the election you say .Well ,what if Freeman has been right all along as well that Obama would be the last president of the US . This is going to be crazy .The same mentality that has been running the money are the same bunch poking Russia . What will happen with all of the US military ? If this all collapses and it sure seems that it is going to ,it will take years for people to get any semblance of normal again ,and it will look nothing like the normal of today . best of luck to us all .What chance would the internet have of surviving ?

a reply to: Cygnis

I was expecting a midterm election event, this must be it. This is a bit off topic, but its related: the mayan calendar did not end on 12/21/12, but it started its last intercalary phase of 1,365 days (Num 3:50) which terminates on 9/16/2016. This intercalary phase consolitates the past yearly 5.25 day overage of the last 13 katuns, so 5.25days x13 katuns of 20 year (360 days each)=1,365 days.

What does this have to do with the 11/4/14 mid-term elections? Well, 11/4/2014 is the MID-POINT of the 1,365 days between 12/21/12 and 9/16/16. They must be trying to finish off the dying American economy in the second half of the intercalary phase.

I outlined this data here, a few years back:
www.abovetopsecret.com...

why now? because closing the QE (in its present form) adds to the illusion the economy is in recovery


here is what's happening... you know all those USA troops (national guardsmen mostly) being shipped to Ebola ravaged areas in Africa...

those African nations are replacing the Fed-Reserve in creating the need & demand for the USD...
and in the immediate future
the $85 BN monthly bailout by the Federal Reserve Balance-Sheet will be small potatoes compared to the $100's of Billions these African Nations will need to have and retain in reserve as their economies get flooded by Western fiat Dollars...
a little 'seed money' today and you soon have whole African National Economies addicted to borrowing more-&-more USD to sustain their growing habit of commercialization/consumerism


African colonization-by-way-of-the-USD, is replacing the Fed Balance Sheet of QE...but that does not mean that QE is 'ended'


Besides this African 'Deploymen't (stealth QE) is extending the useful life of the USA's fiat U$D by 5-10 years max.
creating new addicts is what the 'pusher man' does ... isn't that so ?

a reply to: Cygnis

Personally, I think the US has been "in hospice" since 2012 or earlier. They've been using QE as an economic pain killer since 2008 to keep us floating, but now we are completely dependent. QE was a bad idea in the first place, but now what will we do with our economy when withdrawal sets in and there is no safety net to catch us?

If they stop QE, then it is a sign of controlled demolition.

a reply to: St Udio

You got any links for that? That sounds like good news. We can keep the third world countries strung out lol

originally posted by: Yeahkeepwatchingme
a reply to: StoutBroux

Maybe to suspend the elections?

Thus my question on how long it will take to feel/see the effects. Is it an immediate crisis or something we won't notice for a couple months?

It appears QE, in fact, is over by the end of Oct.

SOURCE


Where we go from here.. Only time will tell.

They are probably wanting a crash by Friday thinking it will help the Democrats in the mid-term election. That's what got Obama elected in 2008. And, polling shows the public for some reason still trust the Dems over the GOP with the economy.

originally posted by: Cygnis
Hello ATS,



So, the punch-bowl of free money is about to end; or so Zerohedge is suggesting.



Quantitative Easing definition (Wiki)



The Federal Reserve may pull the final dipper out of the punch bowl, leaving a well accustomed $85 billion dollars a month out of the market.



When you ask? Wednesday the 29th of Oct (Today here for me in a few minutes) is the FOMC meeting, where they will decide and announce their decision(s).



Much of the current market highs are, in part, due to this abundance of extra liquidity. With the announcement that it's going "bye-bye", could lead to a very ugly drop, as it's back to the "old" market, without the free booz. (Yes, back to BYOB)



With all the news that "The recovery is going wonderful", I think this would catch many a person un-prepared, ill equipped, and behind the 8-ball in many ways.

It is very likely that if the Federal Reserve decided to keep its current pace of bond purchases in place it would likely be interpreted that the economy is indeed not as strong as the statistical headlines suggest. Such an interpretation could lead to a repricing of risk, and a sharp decline in asset prices, that would potentially destabilize consumer confidence. This is not the outcome that the Federal Reserve is looking for.

Zerohedge article (Source)



Give the article a read, there is even some delightful graphs in there, for those that like graph-pr0n.



Certainly something to think about, tho quite hard to prepare for, at this time now.



Thoughts, ATS?

It is a known fact that china and germany wanted their money back and the U.S doen't know what to do. China and germany gave a deadline. I wonder what will happen just before the deadline. We'll see when it comes.

Funny how in order to fix the economy we reverted to Non usurious practices. Space Jesus was on to something.

If they want their money back so bad, then go get it. Just get it from the ones who took control over the fed. We the people did not create the debt, we owe nothing. They did, SO, go get it from them. They wanted it so bad, well ,NOW YOU GOT IT. Take responsibility for it and PAY UP NOW. If rothchild's owns it, then get it from them or who ever else owns it. Pay up, With INTEREST, LATE FEES, PENAULTIES, SIR CHARGES, LOWERED CREDIT RATING,AQUASITION FEE, FILING FEE, COURT FEE AND A LARGE HEADACHE FEE.

a reply to: Emeraldous

Not just Jesus all the holy books ban usury. nothing new under the sun.

Have you seen how low gas prices are getting?

Is there a correlation?

Is a bigger move coming?

The impact will be felt by the Dollar and also by the Euro.

Wall Street is heavily invested in the European market.