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Hello QE3?

1 June 2011 12 Comments

It’s amazing to watch the rhetoric shift on networks like CNBC.  Networks that are essentially cheerleaders for the most part of Fed policy and the so-called recovery.  As the economic data continues to speak otherwise, it’s amazing to watch “experts” shift their position on a possible QE3 by the Fed Reserve.

What was just “No chance.  Off the table.” mere weeks ago, the rhetoric is changing to acknowledge that a third round of QE is now in fact on the table.  These experts on CNBC of course just shift with the latest data or market swing, so I don’t especially recommend putting much trust in them.  Most of them recommend buying more shares of Netflix then a few minutes later recommend buying physical silver when they look at a silver chart.

The bond markets meanwhile are signaling the likelihood of continued Fed intervention in the bond markets as the ten year Treasury hits 3%.  Oh yes, and gold spiked today while the Dow dropped 200 points.

Job growth is weak at best.  New lows in housing is imminent.  When do the masses wake up to these realities?  Answer: Not until there’s a major crisis.

The American Dream is to put your head in the sand and watch American Idol and NFL.  It takes a 50% hair cut to your retirement savings (if you’re in the minority that actually has retirement savings) to wake people up.

Let me go ahead and let you in on a little secret.  QE3 is inevitable.  It might not be called QE3 and it might be more deceptive in order to hide the realities from the masses, but Fed intervention is a must.  They are boxed in and they know it.  Maybe this will be enough to push Ron Paul into legitimate contention for the Presidency?  Probably not.

12 Comments »

  • 20smoney said:

    More on the QE3 whispers: http://www.cnbc.com/id/43244609

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  • JayBandit said:

    Is it just me, or are we going down a similar path to what Japan has been suffering for the past 15 years?

  • Guest said:

    duuuude…

    RP should be the final chairman of the Fed, but I won't have a pres who can't be bullied into saving friends under attack, it's not the "economist" thing to do but it keeps you from being surrounded by enemy you can't defeat.

  • Mario said:

    Definitely interesting. Job losses and slow housing market definitely will affect us all. It really isn't going to help us in the long run. It will only weaken our dollar more put us further in debt

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  • Shaun Connell said:

    I completely agree that the rhetoric change has been almost amusing. I mean. Does anyone really think that the government is going to suddenly cut new money creation in the next few years? The BLS is about to announce record unemployment while inflation has been announced to be over 5% now. Stuck between a rock and a hard place.

  • Bowmanave said:

    Physical is the only way to go. Well, miners too, but they produce physical. Even if your DCA isnt as low as many of the longs term stackers, you may not want to sell.

    A bottom will occur before long and physical silver can't go broke.

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