Quantitative Easing

I had this all written and then a friend of mine turned me on to this trailer which is the FUNNIEST trailer I have ever seen - I CAN NOT WAIT for this movie.  A Million Ways to Die in the West

http://youtu.be/CXxqG4aqwY4 ----------------------------------

Happy Chinese New Year, The Year Of The Horse

The largest human migration in the world is commencing or is taking place.  Most workers in China have ONE holiday and this is it.  Over 2 BILLION people are on the move as migrant workers get to go home and school let out.
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20 years ago I was contacted by the University to do a Sleep Study.  Just filling out 20 pages of questions and charting my sleeping habits for a week.  Got $40.  I've done this for 20 years and wish I could see what I've been doing the last 20 years.

Last month I filled out another one and thought I was done for a year.  BUT NOOOOO!!

They are so curious why I'm still alive (I guess) they want me to come in for a highly paid sleepover.  Hooking me up to wires and telling me to go to sleep.   Dinner, breakfast and money just to sleep!   BLOG WORTHY!!!
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Quantitative Easing  - the "fed" is doing their thing and starting to reduce buying bonds.  It's pretty interesting as we start to deleverage.

this is explained about the 24:10 area in the awesome youtub video I posted yesterday


http://youtu.be/PHe0bXAIuk0

For those that refuse to watch the video . . the central bank has been printing huge amounts of money out of thin air and uses it to buy financial assets and government bonds just like how we got out of the Great Depression.  This drives up asset prices and makes people more credit worthy. BUT, it only helps people that OWN financial assets.

So the Government needs to get involved.  The Central banks buys bonds from the gov, the govs gets a bucket load of cash.  The gov in exchange gives money to unemployment and other stimulants.  Giving money to poor people so they can buy things which in turn stimulates the economy.


People with more money spend more BUT, it increases government debt.  HOWEVER, it lowers the Government debt burden.

As said - the last few years have been very very risky.  Printing money is inflationary. So now the fed is taking their foot off the accelerator a little. If they can balance deflation and inflation they can have what is called a Beautiful De-leveraging.         

What about interest rates?  They are as low as they can get which is why the central bank was printing money.  Interest rates are tweaks the Central banks uses but in this case there were no more tweaks to be had.

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Made out of freaking coat hangers!

 Check out Davic Machs coat hanger collection

Have a great weekend - GO SEAHAWKS!!