Ranting Andy: QE to Infinity – Ramifications, Anyone?
RANTING ANDY – In all the hype around the early August Fed meeting, yet again the entire investment world (and clueless media, of course) completely misunderstood the RAMIFICATIONS of the policy statement. Let’s not get into the fact that the Fed prints VASTLY more money than it purports, sending trillions to insolvent banks and market manipulation activities each year, on a 24/7 basis, as well as to fraudulent offshore entities such as the “Caribbean banking centers” that mysteriously emerged in recent years as enormous U.S. Treasury bond buyers. Heck, we’re no longer in the “Sunday Night Special” phase of collapse, but frankly an “EVERY DAY AND NIGHT SPECIAL” phase, not just in the States but all of Europe, Japan, and nearly the entire FIAT-DISEASED WORLD.
Aside from the COVERT money-printing noted above, the Fed has an OVERT money-printing policy, which at this moment “the Street” erroneously believes engenders ONLY the reinvesting of interest payments into the Treasury market. However, what the Street does not understand is that maintaining the Fed Funds rate at 0% entails MASSIVE, DAILY PURCHASES OF TREASURY SECURITIES WITH FRESHLY PRINTED MONEY. This is “daily QE”, not to be confused with the “supplemental QE” involved with a $600 billion Treasury/MBS repurchase program, the latter of which was referred to as “QE2.”
But this “daily QE” is the essence of “QE to Infinity”, and thanks to the Fed’s INCREDIBLY MORONIC statement last week, is now GUARANTEED to occur for at least two more years (if the dollar lasts that long). As I noted in June, the Fed desperately wanted to announced a formal QE3 program at its June 22nd meeting, but was thwarted (IN MY VERY STRONG OPINION) by the fact that gold was trading at an all-time high at the time ($1,575/oz back then), ready to EXPLODE on such an announcement and fuel massive inflation fears. Thus, they had to simply continue with daily QE and COVERT money-printing, hoping they’d get enough of a summer “deflation scare” to justify a formal QE3 announcement.
Well guess what?
Six weeks later, at the August Fed meeting, the Western economy had DRAMATICALLY declined (COLLAPSED, actually), but gosh darn it the gold price had soared to the $1,650 level, yet again preventing Bernanke’s desperately desired QE3 announcement. So instead, they thought they were clever by not announcing OVERT QE3, but instead stating they’d keep the Fed Funds rate at 0% (“daily QE”) for at least two more years.
DUH, how stupid can you be Ben?
Yes, my quivering lip friend, you just GUARANTEED stagflation (or, more descriptively, a hyperinflationary depression) for not only the U.S. but the entire “Frankenstein body” of the fiat currency system. By GUARANTEEING a ZIRP policy ad infinitum, you have once and for all painted America into a corner, with no hope of escape. Anyone with half a brain realizes inflationary pressures are SURGING (particularly for things we NEED to live on), yet no matter what BLATANT SIGNS of inflation show their face (such as SOARING GOLD PRICES), the Fed has committed itself to MASSIVE, DAILY QE for at least two more years.
Heck, just a week into this policy, and look at the economic data, keeping in mind that ALL published U.S. data is MANIPULATED to show stronger economic activity and lower inflation than reality dictates. ALL the economic data is worse than expected, and ALL the inflation data higher than expected. Heck, look at the massive upside surprises in the PPI yesterday and CPI today, while the economic data, such as housing starts, the Empire State manufacturing data (talk about an oxymoron, manufacturing in NY State!), and initial jobless claims.
Sometimes a RANT doesn’t need to be long, as all I’m doing is condensing what I’ve been saying for some time. It’s only a matter of time before the PUBLIC, which as I’ve noted are finally starting to ask questions about “what’s wrong”, gets caught up in the cycle of FEAR and starts to desperately rid itself of PAPER DOLLARS in lieu of ITEMS OF REAL VALUE, particularly REAL MONEY. Once they start to understand that GOLD and SILVER are MONEY, not investments, the scramble for PHYSICAL METAL will commence.
I strongly believe PHYSICAL gold and silver will go “NO OFFER” at some point during the next year, at which point you will not be able to exchange your PAPER DOLLARS for such REAL MONEY at ANY PRICE, or at least not any price even remotely near the current levels (think at least 2x).
And one final note before I go. Take a look at how close the REAL GOLD PRICE is to $2,000 as we speak, with SPOT gold currently around $1,818/oz (care of APMEX), possibly to go above $2,000 by later today! When looking at this data, keep in mind that NEARLY ALL gold buyers are buying less than 20 coins, and paying with credit cards.
BabyBullTwits
Ranting Andy: QE to Infinity – Ramifications, Anyone?
RANTING ANDY – In all the hype around the early August Fed meeting, yet again the entire investment world (and clueless media, of course) completely misunderstood the RAMIFICATIONS of the policy statement. Let’s not get into the fact that the Fed prints VASTLY more money than it purports, sending trillions to insolvent banks and market manipulation activities each year, on a 24/7 basis, as well as to fraudulent offshore entities such as the “Caribbean banking centers” that mysteriously emerged in recent years as enormous U.S. Treasury bond buyers. Heck, we’re no longer in the “Sunday Night Special” phase of collapse, but frankly an “EVERY DAY AND NIGHT SPECIAL” phase, not just in the States but all of Europe, Japan, and nearly the entire FIAT-DISEASED WORLD.
Aside from the COVERT money-printing noted above, the Fed has an OVERT money-printing policy, which at this moment “the Street” erroneously believes engenders ONLY the reinvesting of interest payments into the Treasury market. However, what the Street does not understand is that maintaining the Fed Funds rate at 0% entails MASSIVE, DAILY PURCHASES OF TREASURY SECURITIES WITH FRESHLY PRINTED MONEY. This is “daily QE”, not to be confused with the “supplemental QE” involved with a $600 billion Treasury/MBS repurchase program, the latter of which was referred to as “QE2.”
But this “daily QE” is the essence of “QE to Infinity”, and thanks to the Fed’s INCREDIBLY MORONIC statement last week, is now GUARANTEED to occur for at least two more years (if the dollar lasts that long). As I noted in June, the Fed desperately wanted to announced a formal QE3 program at its June 22nd meeting, but was thwarted (IN MY VERY STRONG OPINION) by the fact that gold was trading at an all-time high at the time ($1,575/oz back then), ready to EXPLODE on such an announcement and fuel massive inflation fears. Thus, they had to simply continue with daily QE and COVERT money-printing, hoping they’d get enough of a summer “deflation scare” to justify a formal QE3 announcement.
Well guess what?
Six weeks later, at the August Fed meeting, the Western economy had DRAMATICALLY declined (COLLAPSED, actually), but gosh darn it the gold price had soared to the $1,650 level, yet again preventing Bernanke’s desperately desired QE3 announcement. So instead, they thought they were clever by not announcing OVERT QE3, but instead stating they’d keep the Fed Funds rate at 0% (“daily QE”) for at least two more years.
DUH, how stupid can you be Ben?
Yes, my quivering lip friend, you just GUARANTEED stagflation (or, more descriptively, a hyperinflationary depression) for not only the U.S. but the entire “Frankenstein body” of the fiat currency system. By GUARANTEEING a ZIRP policy ad infinitum, you have once and for all painted America into a corner, with no hope of escape. Anyone with half a brain realizes inflationary pressures are SURGING (particularly for things we NEED to live on), yet no matter what BLATANT SIGNS of inflation show their face (such as SOARING GOLD PRICES), the Fed has committed itself to MASSIVE, DAILY QE for at least two more years.
Heck, just a week into this policy, and look at the economic data, keeping in mind that ALL published U.S. data is MANIPULATED to show stronger economic activity and lower inflation than reality dictates. ALL the economic data is worse than expected, and ALL the inflation data higher than expected. Heck, look at the massive upside surprises in the PPI yesterday and CPI today, while the economic data, such as housing starts, the Empire State manufacturing data (talk about an oxymoron, manufacturing in NY State!), and initial jobless claims.
Sometimes a RANT doesn’t need to be long, as all I’m doing is condensing what I’ve been saying for some time. It’s only a matter of time before the PUBLIC, which as I’ve noted are finally starting to ask questions about “what’s wrong”, gets caught up in the cycle of FEAR and starts to desperately rid itself of PAPER DOLLARS in lieu of ITEMS OF REAL VALUE, particularly REAL MONEY. Once they start to understand that GOLD and SILVER are MONEY, not investments, the scramble for PHYSICAL METAL will commence.
I strongly believe PHYSICAL gold and silver will go “NO OFFER” at some point during the next year, at which point you will not be able to exchange your PAPER DOLLARS for such REAL MONEY at ANY PRICE, or at least not any price even remotely near the current levels (think at least 2x).
And one final note before I go. Take a look at how close the REAL GOLD PRICE is to $2,000 as we speak, with SPOT gold currently around $1,818/oz (care of APMEX), possibly to go above $2,000 by later today! When looking at this data, keep in mind that NEARLY ALL gold buyers are buying less than 20 coins, and paying with credit cards.
PROTECT YOURSELF, and do it NOW!
This coin comes in Brilliant Uncirculated condition. Dates are of our choice, a… view more Average Rating
Availability: Now
APMEX Buy Price – $1,860.70
Qty
Check or Wire
Credit Card
Any Qty
$1,930.69
$1,988.61
Volume Pricing:
Qty
Check or Wire
Credit Card
1 – 19
$1,930.69
$1,988.61
20 – 99
$1,925.69
$1,983.46
100 or more
$1,920.69
$1,978.31
Gold American Eagle coins attract attention from collectors and investors all over… view moreAverage Rating
Availability: Now
APMEX Buy Price – $1,862.70
Qty
Check or Wire
Credit Card
Any Qty
$1,932.69
$1,990.67
Volume Pricing:
Qty
Check or Wire
Credit Card
1 – 19
$1,932.69
$1,990.67
20 – 99
$1,927.69
$1,985.52
100 or more
$1,922.69
$1,980.37
Share this:
Related
This entry was posted on Thursday, August 18th, 2011 at 8:44 am and is filed under Dollar, Gold, Market Commentary, Ranting Andy, Silver. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.