QE3

[JulzM]

Time to Pull the Trigger?

[doomsdayza]

jun 19 / 20 we'll know

[Fredsed]

Now look what your thoughts did to the bears, please think a little quieter in future.

[DEP]

No so fast... the FED will probably act late third quarter.

[kwagga]

QE3 won't happen.

[THRESHOLD]

QE3 is already nderway. Formal QE3 will follow soon. There can be no end to QE.

[kwagga]

There must be an end to QE. If you want to see the effects of no end to QE just pull up a 20 year chart of the Nikkei 225. In 1989 it stood on 38,957. Today its on 8,205. If your banking on never ending QE, kiss your long term investments goodbye. QE manifests in short term stock market support, but it also support an endless spiral of throwing good money after bad (aka debt). No economy can be sustained with life support like this - just ask the Japanese. They have been going nowhere slowly for 20 years, and they have more QE on their books than any other country in the world.

[DEP]

Its too late for the FED and the US to reverse course with regards to QE 's- there will be more QE. Bottom line the US will never be able to pay its debts - so they will deflate the $.

[SimonPB]

an inflate ..

[doomsdayza]

QE causes inflation not deflation? there's more money in circulation therefore things cost more. that's why gold is so attractive as a store of wealth during hyper-inflationary times.

[kwagga]

DEP - How do you deflate you currency if it's the fiat currency of the world ? How do you prevent massive dollar purchases and support from the financial world ? It's much easier said than done.

[THRESHOLD]

There IS no end to QE3. "They" cannot fix unemployment. "They" cannot fix the fiat currency system. This is a crisis of governance. A small capitalist core is being called upon to support an ever-growing (and at an accelerating rate) unemployed (and unemployable) underclass. The discrete, subversive destruction of the monetary system is a symptom of this, as opposed to a cause. It has now blown open. We have seen this "easing" at a low level for 70 years, since the end of WWii. It is building momentum now. Why do you think they will ever be able to stop? "Stopping" implies a paradigm shift - perhaps trade barrieres... abandoning the emerging world. A vast war?

[THRESHOLD]

Incidentally - Japan's woes are often blamed on the fact that she refused to embark on an "aggressive and expansive ENOUGH" programme of "easing." It has been argued - and righly, in my view, that international compettition to devalue currencies would have undermined any purely fiscal measures she employed. In any case, America had moved on to KOREA, VIETNAM and then CHINA to support her own "goods-for-paper" programme. Japan had become too "small" for her purposes. She needed more.

[kwagga]

You stop QE with inflicting vast amounts of pain - Greece is a case in point, but very needed to improve balance sheets. They'll reap the rewards of what they're doing now in a few years time.

[SimonPB]

you weaken currency that reduces external prices and for internal prices you allow inflation to run .. boom your debt is lower, countires been doing it since forever

[THRESHOLD]

Never been managed - even in communist Russia. Anyway - just look how well that is turning out right now. That's why I suggested a huge war - this is the traditional way to "hit the reset button" and lower expectations. As a matter of interest - in America - they are expanding social programmes - ditto for South Africa, England, Australia. There are no jobs. So government must act as a stop-gap. This is not a problem with any obvious solution.

[THRESHOLD]

(Re)-inflation. This will be the third time round for the US. And we all still pretend they won't do it. What a bunch of clowns the rest of us are. Viva America.

[DEP]

Hence, Gold continues appreciation for the past 10 yrs. Moral of the story - hold on to assets that cannot be printed / manipulated at will. Oil, Property, food commodities etc being another assets.

[SimonPB]

food the interesting one .. somebody sugegsted to me that TBS has been a better performer over last 10 years compared to gold (I haven't as yet run the numbers to confirm), he said it was his preferred hedge against inflation ..

[Fredsed]

Sangoma predicts when gold hits $3000 then nuclear war begins. FED is bad loser.