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Quantitative Easing

1-12 out of 22 results.

I called inflation's rise and fall and here's what's next

In 2020, I warned that surging US money supply growth would spark inflation. By early 2023, I said US money supply was dropping dramatically and that meant inflation would decline. Here's what happens next.

The RBA's balancing act

During the pandemic, the RBA’s balance sheet swelled to over $600 billion, which is now steadily shrinking. This explores the implications for financial markets, interest rates, and the economy’s path forward.

Trump's US dollar assault is fuelling CBA's rise

Australian-based investors have been perplexed by the steep rise in CBA's share price But it's becoming clear that US funds are buying into our largest bank as a hedge against potential QE and further falls in the US dollar.

The RBA’s QE losses

Accounting losses from a pandemic inspired bond buying spree have wiped out the RBA's equity and more, pushing its balance sheet into negative equity territory. How did it happen and what lessons can be learned?

RBA justifies its QE to QT, but did it drive inflation?

Deputy Governor, Michelle Bullock, explained last week why the RBA bought $280 billion of bonds in its QE programme, but are we paying the price for this stimulus as rising inflation shocks central bankers?

Globalisation is morphing into something less promising

Not long ago, globalisation seemed on a relentless growth path, promising to bring everyone into a global economy. But with politics, pandemics and the Ukraine war, 'geoeconomics’ will lower living standards for all.

Three reasons high inflation may trigger a European crisis

To add to the world's problems, high inflation is exposing Europe's frailties and poorer nations have no independent monetary policies to help their economies. Core problems cannot always be kicked down the road.

Can quantitative tightening help the Fed fight inflation?

The US Federal Reserve's first foray into quantitative tightening from 2017 fizzled. Can asset-selling – aka money destroying – help fight inflation this time around?

Understanding QE and its impact on inflation

With bond rates and Reserve Bank actions driving equity markets and inflationary expectations, it pays to understand what is really happening in both central bank and commercial bank balance sheets.

Most Australians live better than the Rockefellers

It's tempting to focus on the negatives of the pandemic, the US election, the China/US cold war and inequality. But technology is delivering benefits that even wealthy people in the past could not have imagined.

Quantum computing would be a world-changing technological leap

Quantum computers have a theoretical ability to calculate millions of possibilities in seconds, yet it may take time before we see a breakthrough in the practical applications of sub-atomic computing.

Policymakers fear cutting stimulus can lead to recession

Prolonging a recovery with stimulus could lead to a worse slump later. Even today, policymakers are haunted by actions taken in 1937 which led to a loss of production and jobs and a falling GDP.

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Australia's retirement system works brilliantly for some - but not all

The superannuation system has succeeded brilliantly at what it was designed to do: accumulate wealth during working lives. The next challenge is meeting members’ diverse needs in retirement. 

Australian stocks will crush housing over the next decade, 2025 edition

Two years ago, I wrote an article suggesting that the odds favoured ASX shares easily outperforming residential property over the next decade. Here’s an update on where things stand today.

The 3 biggest residential property myths

I am a professional real estate investor who hears a lot of opinions rather than facts from so-called experts on the topic of property. Here are the largest myths when it comes to Australia’s biggest asset class.

AFIC on the speculative ASX boom, opportunities, and LIC discounts

In an interview with Firstlinks, CEO Mark Freeman discusses how speculative ASX stocks have crushed blue chips this year, companies he likes now, and why he’s confident AFIC’s NTA discount will close.

Where to hide in the ‘everything bubble’

It might not be quite an ‘everything bubble’ but there’s froth in many assets, not just US stocks, right now. It might be time to stress test your portfolio and consider assets that could offer you shelter if trouble is coming.

Property versus shares - a practical guide for investors

I’ve been comparing property and shares for decades and while both have their place, the differences are stark. When tax, costs, and liquidity are weighed, property looks less compelling than its reputation suggests.

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