QEs - "The More the Better" for the US

Discussion in 'Economics' started by OddTrader, Dec 27, 2011.

  1. http://www.elitetrader.com/vb/showthread.php?s=&postid=3397964#post3397964

    Probably, just probably, QEs would be actually good or very good for the US economy in long run!

    But not too many people in general, and only few investors in particular realised that Yet!!!



    The economic feasibility of shale oil extraction is highly dependent on the price of conventional oil; if the price of crude oil per barrel is less than the production price per barrel of shale oil, it is uneconomic.


    However, worldwide technically recoverable reserves have recently been estimated at about 2.8–3.3 trillion barrels (450×109–520×109 m3) of shale oil, with the largest reserves in the United States, which is thought to have 1.5–2.6 trillion barrels (240×109–410×109 m3).[2][3][4][5]




    Can Oil Shale Change The World?

    America’s oil shale reserves are enormous, totaling at least 1.5 trillion barrels of oil. That’s five times the reserves of Saudi Arabia! And yet, no one is producing commercial quantities of oil from these vast deposits. All that oil is still sitting right where God left it, buried under the vast landscapes of Colorado and Wyoming.

    Obviously, there are some very real obstacles to oil production from shale. After all, if it was such a good thing, we’d be doing it already, right? “Oil shale is the fuel of the future, and always will be,” goes a popular saying in Western Colorado.

    But what if we could safely and economically get our hands on all that oil? Imagine how the world might change. The U.S. would instantly have the world’s largest oil reserves. Imagine…having so much oil we’d never have to worry about Saudi Arabia again, or Hugo Chavez, or the mullahs in Tehran. And instead of ships lined up in L.A.’s port to unload cheap Chinese goods, we might see oil tankers lined up waiting to export America’s tremendous oil bounty to the rest of the world. The entire geopolitical and economic map of the world would change…and the companies in the vanguard of oil shale development might make hundreds of billions of dollars as they convert America’s untapped shale reserves into a brand new energy revolution.

    Presidents Gerald Ford and Jimmy Carter may have been entertaining similar ambitions in the late 1970s when they encouraged and funded the development of the West’s shale deposits. A shale-boom ensued, although not much oil flowed. The government spent billions and so did Exxon Mobil. New boomtowns sprung up in Rifle, Parachute, Rangely, and Meeker here in Colorado.

    And then came Black Monday. May 2, 1982. The day Exxon shut down its $5 billion Colony Oil Shale project. The refineries closed. The jobs left (the American oil industry has lost nearly as many jobs in the last ten years as the automobile and steel industries.) And the energy locked in Colorado’s vast shale deposits sat untouched and unrefined.



    RIYADH | Mon Nov 21, 2011 1:29pm EST

    (Reuters) - Saudi Arabia's state energy company said on Monday that its dominant role in world oil supply had been altered by large new reserves in North America, sapping the urgency to develop the kingdom's own reserves.
  2. http://prudentinvestornewsletters.blogspot.com/2011/08/g-7-more-qes-coming.html

    Monday, August 08, 2011
    G-7: More QEs Coming

    Group of Seven nations sought to head off a collapse in global investor confidence after the U.S. sovereign-rating downgrade and a sell-off in Italian and Spanish debt intensified threats to the world economic recovery.

    The G-7 will take “all necessary measures to support financial stability and growth,” the nations’ finance ministers and central bankers said in a statement today. Members will inject liquidity and act against disorderly currency moves as needed, they said.

  3. zdreg


    "Probably, just probably, QEs would be actually good or very good for the US economy in long run! "
    same nonsense repeated a 100 tomes doesn't make it true.
    debasing/devaluing the currency doesn't bring prosperity but the downfall of empires and countries..
  4. The reality is "Something Unstoppable"!

    Today, most economists favor a low, steady rate of inflation.[9] Low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy.[10] The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control monetary policy through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.[11]

    It's only a matter of how much in the long run! Otherwise, less equity investors, hence less stock traders!!!



    Why Quantitative Easing Has NOT Brought Back Inflation
    Published March 25, 2011 | By Elliott Wave International

    March 25, 2011

    When the FED began quantitative easing to halt the deflationary crash of 2008, almost everyone was convinced that it would result in massive inflation. The lone voice proclaiming that it wouldn’t stop the deflationary express train wreck was Robert Prechter. In the following article Prechter explains why inflation never materialized. It is an excerpt from Prechter’s, Independent Investor eBook 2011. I hope you enjoy this short excerpt. See below for details on how to get the eBook in its entirety for free. ~ Tim McMahon, editor
    By Elliott Wave International
    Club EWI’s Free Independent Investor eBook 2011 (excerpt)

    Chapter 1: Quantitative Easing Has Not Brought Back the Old Inflationary Trend
    (From Prechter’s January 2011 Elliott Wave Theorist)

    While long terms rates are rising, Treasury bill rates are stuck near zero. How is it possible?

    … During hyperinflation, rates typically rise to double digits per month. Inflationists find it difficult to reconcile the Fed’s massive balance sheet growth over three years beginning in August 2008 with short term rates at zero and long term rates only in the 2-5% range.

    Deflationists (all ten of us) understand why investors are willing to hold government paper at such low returns: The total supply of debt is contracting. Most bonds won’t survive. The federal government’s bonds will survive the longest.

    Figure 10 shows that the total supply of “money” plus debt (all of which is in fact debt) peaked in 2008. This decline in overall money and credit is the first on an annual basis since 1929-1933. It is a big deal.

    … This graph explains why gold in 2010 was so much lonelier in making an all-time high than stocks, commodities and real estate were in 2006, when everything was making an all-time high simultaneously: The total money + credit supply is down and cannot support new highs in all markets at once.

    The Fed’s QE programs are failing to re-ignite inflation. By mid-2011, the Fed will have monetized just over $2 trillion worth of debt since 2008 to bring the value of its total assets to about $3t. This does represent a huge amount of fiat money. But the overall debt load is $65 trillion. Thus, the Fed will have monetized only 5% of the total, meaning that 95% of the outstanding debt is still suffocating the economy like a giant pool of sludge. …The Fed’s degree of monetization in light of these debts is very small.

    For more insights on the markets, including why QE2 was a major tactical error, why rising oil prices are not bearish for stock, and why earnings don’t drive stock prices, read the rest of this FREE 51-page Independent Investor eBook. Download your free eBook NOW.

    This article was syndicated by Elliott Wave International and was originally published under the headline Quantitative Easing: Why It Has NOT Brought Back Inflation. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

  5. 26 QE's




    Fed Official: Oil shock could lead to QE3 -- How to trade QE3?


  6. Mvector


    The federal reserve criminals gave out 16 trillion already - this fact was added to a recent bill in congress by a congressman from a recent GAO report - smart guy to add that to the record so everyone could see what is really going on. Us corporations have 11 trillion in debt - this is all going to end very bad and many just don't get it yet.
  7. Mvector




    Many Americans have a hard time grasping just how large 16.1 trillion dollars is. It is an amount of money that is almost inconceivable. It is more than the GDP of the United States for an entire year. It is more than the U.S. government has spent over the last four years combined.

    The Federal Reserve was just creating gigantic piles of cash out of thin air and throwing them around with wild abandon.

    One of the only members of Congress that has wanted to talk about the GAO audit has been U.S. Senator Bernie Sanders. The following is a statement about this audit that was taken from his official website….

    “As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world”
  8. My guess is any man (or start-up venture) who is able to give out 16 trillion or get a long-lasting loan of 11 trillion must be, I believe, a very wealthy and healthy person, in terms of his assets or earning potential!
  9. Mvector


    16 TRILLION is a black hole of debt which is now thrown on the taxpayers back - this will not end well - not one single historical example of this working - if you are into lottery ticket probabilities then you may think there is a chance - LOL!
    #10     Dec 27, 2011