Bloomberg headline: Bernanke-Led Economy Shows Critics Wrong About Fed
Inflation under control? Do these people buy groceries?
Trusting mainstream media, is the road to serfdom.
Wednesday, February 8, 2012
Tuesday, February 7, 2012
QE3
No doubt QE3 has been launched, as Jim Sinclare recently commented, with the Swap line facility provided by the US Federal Reserve to ECB, accommodated by the Fed's announcement to hold interest rate close to zero to 2014.
What now? The on-going debt and currency crisis in the developed economies, spawned by the unpeg of the US dollar to gold price in 1971, which led to unlimited money printing in the form of US treasuries for the past few decades, will not be resolved by printing more money.
In the short term, with liquidity now flooding the markets, all asset class should continue to rise.
But for how long?
As history has repeated shown, money printing always come with runaway inflation and currency depreciation.
As a result, the trend in the above graph shall continue.
What now? The on-going debt and currency crisis in the developed economies, spawned by the unpeg of the US dollar to gold price in 1971, which led to unlimited money printing in the form of US treasuries for the past few decades, will not be resolved by printing more money.
But for how long?
As history has repeated shown, money printing always come with runaway inflation and currency depreciation.
As a result, the trend in the above graph shall continue.
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