Observers of the Fed's most recent activities may be joking about "QEI"-- Quantitative Easing Infinity-but they won't be kidding around when the international financial system comes to an extremely chaotic, really detrimental, very finite collapse.
Gold prices once again are surging because global investors understand that the third round of "quantitative easing" announced by the U.S. Federal Reserve last week will only put a tiny Band-Aid on a world financial system that is in its last gasps. As it dies, savvy investors are turning to gold and other precious metals as the only safe haven.
Foolishly, Fed Chairman Ben Bernanke and his minions on the Fed committee are attempting to persuade Americans and the rest of the world - with the help of a compliant financial-news media - that "QE3" will help the economy grow again because it will involve purchasing of an extra $40 billion a month in mortgage debt by the U.S. government until the labor market improves.
"Given the slow and fragile recovery, the large resource gaps that still exist, and the large risks we face, it remains clear that we needed a more resilient economy," Charles Evans, president of the Federal Resrve Bank of Chicago, said in a speech this week in Michigan. QE3, on top of the initial QE1 and QE2 over the last couple of years, "provided a more accommodative monetary policy that can help us achieve such resilience."
Hogwash. QE3 is only aimed at trying to bail water off the sinking ship of the U.S. economy, at least enough to stave off further economic deterioration in the next several weeks and help President Obama get re-elected. Republican presidential candidate Mitt Romney already has said he would sack Bernanke.
Unfortunately, the real result of QE3 will definitely be different than advertised. The Fed will certainly print billions more dollars and force them into an already-dying economy. By devaluing the dollar, it will rob those who hold dollars -- American citizens and global investors-- of even more of the dollar's "worth."
There will be even more inflation in the short term as the ship sinks. And the long term? It just got shorter. Bernanke won't be able to "infinitely" dole out the goodies from quantitative easing because QE3 will only accelerate the coming crash of the entire American and worldwide financial system.
Gold prices once again are surging because global investors understand that the third round of "quantitative easing" announced by the U.S. Federal Reserve last week will only put a tiny Band-Aid on a world financial system that is in its last gasps. As it dies, savvy investors are turning to gold and other precious metals as the only safe haven.
Foolishly, Fed Chairman Ben Bernanke and his minions on the Fed committee are attempting to persuade Americans and the rest of the world - with the help of a compliant financial-news media - that "QE3" will help the economy grow again because it will involve purchasing of an extra $40 billion a month in mortgage debt by the U.S. government until the labor market improves.
"Given the slow and fragile recovery, the large resource gaps that still exist, and the large risks we face, it remains clear that we needed a more resilient economy," Charles Evans, president of the Federal Resrve Bank of Chicago, said in a speech this week in Michigan. QE3, on top of the initial QE1 and QE2 over the last couple of years, "provided a more accommodative monetary policy that can help us achieve such resilience."
Hogwash. QE3 is only aimed at trying to bail water off the sinking ship of the U.S. economy, at least enough to stave off further economic deterioration in the next several weeks and help President Obama get re-elected. Republican presidential candidate Mitt Romney already has said he would sack Bernanke.
Unfortunately, the real result of QE3 will definitely be different than advertised. The Fed will certainly print billions more dollars and force them into an already-dying economy. By devaluing the dollar, it will rob those who hold dollars -- American citizens and global investors-- of even more of the dollar's "worth."
There will be even more inflation in the short term as the ship sinks. And the long term? It just got shorter. Bernanke won't be able to "infinitely" dole out the goodies from quantitative easing because QE3 will only accelerate the coming crash of the entire American and worldwide financial system.
About the Author:
Looking to find the best deal on buying and selling gold, then visit www.southlakegoldandsilver.com. Or get the best advice from her insightful book Faith Through The Flames.
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