Activist Post
Ready or not, QE3 is here, and the long-term effects of this reckless money printing by the Federal Reserve are going to be absolutely nightmarish. The Federal Reserve is hoping that buying $40 billion worth of mortgage-backed securities per month will spur more lending and more economic activity. But that didn't happen with either QE1 or QE2. Both times the banks just sat on most of the extra money.
As I pointed out the other day, U.S. banks are already sitting on $1.6 trillion in excess reserves. So will pumping them up with more cash suddenly make them decide to start lending? Of course not. In addition, QE3 is not likely to produce many additional jobs. As I showed in a previous article, the employment level did not jump up as a result of either QE1 or QE2. So why will this time be different?
But what did happen under both QE1 and QE2 is that a lot of the money ended up pumping up the financial markets. So once again we should see stock prices go up (at least in the short term) and commodities such as gold, silver, food and oil should also rise. But that also means that average American families will be paying more for the basic necessities that they buy on a regular basis. The most dangerous aspect of QE3, however, is what it is going to do to the U.S. dollar.
Most of the rest of the world uses the U.S. dollar to conduct international trade, and by choosing to recklessly print money Ben Bernanke is severely damaging international confidence in our currency. If at some point the rest of the world rejects the dollar and no longer wants to use it as a reserve currency we are going to be facing a crisis unlike anything we have ever seen before. The real debate about QE3 should not be about whether or not it will help the economy a little bit in the short-term. Rather, everyone should be talking about the long-term implications and about how QE3 is going to accelerate the destruction of the dollar.
The following are 10 shocking quotes about what QE3 is going to do to America....
#1 Ron Paul
"It means we are weakening the dollar. We are trying to liquidate our debt through inflation. The consequence of what the Fed is doing is a lot more than just CPI. It has to do with malinvestment and people doing the wrong things at the wrong time. Believe me, there is plenty of that. The one thing that Bernanke has not achieved and it frustrates him, I can tell—is he gets no economic growth. He doesn’t do anything with the unemployment numbers. I think the country should have panicked over what the Fed is saying that we have lost control and the only thing we have left is massively creating new money out of thin air, which has not worked before, and is not going to work this time."
#2 Peter Schiff, CEO Of Euro Pacific Capital
"This is a disastrous monetary policy; it’s kamikaze monetary policy"
#3 Michael Pento, The Founder Of Pento Portfolio Strategies
"This is the nuclear option for them. This is a never-ending weapon that is being fired at the middle class"
#4 Donald Trump
"People like me will benefit from this."
#5 Economist Anthony Randazzo
"Quantitative easing—a fancy term for the Federal Reserve buying securities from predefined financial institutions, such as their investments in federal debt or mortgages—is fundamentally aregressive redistribution program that has been boosting wealth for those already engaged in the financial sector or those who already own homes, but passing little along to the rest of the economy. It is a primary driver of income inequality formed by crony capitalism. And it is hurting prospects for economic growth down the road by promoting malinvestments in the economy."
#6 John Williams Of Shadowstats.com
"That’s absolutely nonsense. The Fed is just propping up the banks."
#7 Marc Faber
"I happen to believe that eventually we will have a systemic crisis and everything will collapse. But the question is really between here and then. Will everything collapse with Dow Jones 20,000 or 50,000 or 10 million? Mr. Bernanke is a money printer and, believe me, if Mr. Romney wins the election the next Fed chairman will also be a money printer. And so it will go on. The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down."
#8 Mesirow Financial Chief Economist Diane Swonk
"I think this will end up being a trillion-dollar commitment by the Fed"
#9 Federal Reserve Chairman Ben Bernanke
"I want to be clear — While I think we can make a meaningful and significant contribution to reducing this problem, we can’t solve it. We don’t have tools that are strong enough to solve the unemployment problem"
#10 Credit Rating Agency Egan-Jones
"[T]he FED’s QE3 will stoke the stock market and commodity prices, but in our opinion will hurt the US economy and, by extension, credit quality. Issuing additional currency and depressing interest rates via the purchasing of MBS does little to raise the real GDP of the US, but does reduce the value of the dollar (because of the increase in money supply), and in turn increase the cost of commodities (see the recent rise in the prices of energy, gold, and other commodities). The increased cost of commodities will pressure profitability of businesses, and increase the costs of consumers thereby reducing consumer purchasing power. Hence, in our opinion QE3 will be detrimental to credit quality for the US…."
We have reached a major turning point in the financial history of the United States.
It would be hard to overstate how much damage that QE3 could potentially do to our financial system. If the rest of the world decides at some point that they no longer have confidence in our dollars and our debt then we are finished.
Sadly, the mainstream media does not seem to understand this, and most Americans gleefully believe whatever the mainstream media tells them.
So what do you think about QE3? Please feel free to post a comment with your opinion following this article....
RELATED ACTIVIST POST ARTICLE:
QE Infinity: Fed Buying More Toxic Assets From Banks Will NOT Help Main Street
The following are 10 shocking quotes about what QE3 is going to do to America....
#1 Ron Paul
"It means we are weakening the dollar. We are trying to liquidate our debt through inflation. The consequence of what the Fed is doing is a lot more than just CPI. It has to do with malinvestment and people doing the wrong things at the wrong time. Believe me, there is plenty of that. The one thing that Bernanke has not achieved and it frustrates him, I can tell—is he gets no economic growth. He doesn’t do anything with the unemployment numbers. I think the country should have panicked over what the Fed is saying that we have lost control and the only thing we have left is massively creating new money out of thin air, which has not worked before, and is not going to work this time."
#2 Peter Schiff, CEO Of Euro Pacific Capital
"This is a disastrous monetary policy; it’s kamikaze monetary policy"
#3 Michael Pento, The Founder Of Pento Portfolio Strategies"This is the nuclear option for them. This is a never-ending weapon that is being fired at the middle class"
#4 Donald Trump
"People like me will benefit from this."
#5 Economist Anthony Randazzo
"Quantitative easing—a fancy term for the Federal Reserve buying securities from predefined financial institutions, such as their investments in federal debt or mortgages—is fundamentally aregressive redistribution program that has been boosting wealth for those already engaged in the financial sector or those who already own homes, but passing little along to the rest of the economy. It is a primary driver of income inequality formed by crony capitalism. And it is hurting prospects for economic growth down the road by promoting malinvestments in the economy."
#6 John Williams Of Shadowstats.com
"That’s absolutely nonsense. The Fed is just propping up the banks."
#7 Marc Faber
"I happen to believe that eventually we will have a systemic crisis and everything will collapse. But the question is really between here and then. Will everything collapse with Dow Jones 20,000 or 50,000 or 10 million? Mr. Bernanke is a money printer and, believe me, if Mr. Romney wins the election the next Fed chairman will also be a money printer. And so it will go on. The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down."
#8 Mesirow Financial Chief Economist Diane Swonk
"I think this will end up being a trillion-dollar commitment by the Fed"
#9 Federal Reserve Chairman Ben Bernanke
"I want to be clear — While I think we can make a meaningful and significant contribution to reducing this problem, we can’t solve it. We don’t have tools that are strong enough to solve the unemployment problem"
#10 Credit Rating Agency Egan-Jones
"[T]he FED’s QE3 will stoke the stock market and commodity prices, but in our opinion will hurt the US economy and, by extension, credit quality. Issuing additional currency and depressing interest rates via the purchasing of MBS does little to raise the real GDP of the US, but does reduce the value of the dollar (because of the increase in money supply), and in turn increase the cost of commodities (see the recent rise in the prices of energy, gold, and other commodities). The increased cost of commodities will pressure profitability of businesses, and increase the costs of consumers thereby reducing consumer purchasing power. Hence, in our opinion QE3 will be detrimental to credit quality for the US…."We have reached a major turning point in the financial history of the United States.
It would be hard to overstate how much damage that QE3 could potentially do to our financial system. If the rest of the world decides at some point that they no longer have confidence in our dollars and our debt then we are finished.
Sadly, the mainstream media does not seem to understand this, and most Americans gleefully believe whatever the mainstream media tells them.
So what do you think about QE3? Please feel free to post a comment with your opinion following this article....
RELATED ACTIVIST POST ARTICLE:
QE Infinity: Fed Buying More Toxic Assets From Banks Will NOT Help Main Street
This article first appeared here at the American Dream. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.
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26 comments:
seems to be fairly obvious what the upper 1% is doing: destroying everything, everyone, everywhere.
9 Federal Reserve Chairman Ben Bernanke
"I want to be clear — While I think we can make a meaningful and significant contribution to reducing this problem, we can’t solve it. We don’t have tools that are strong enough to solve the unemployment problem"
If Bernancke was a CEO of a corporation and made a statement like the above the shareholders would have him fired and replaced before the end of day. Why does the American public accept his can't do attitude? Fire him and whoever supports his nonsense.
Just remember who ever gets the newly printed money first gets it a higher value then the recipients of the trickle down. Once this new money fully integrates into the money supply it will lower the overall value of the dollar. So once Joe American gets it the value will be lower then when the banks were using it. So everytime the printing press runs we get stuck with the inflated costs due to loss of value, you bastards!
Does anyone know how to put the Brakes on,we are sliding off the cliff,and no one is trying to stop it??The Collapse will come soon......
Does anyone know how to put the Brakes on,we are sliding off the cliff,and no one is trying to stop it??The Collapse will come soon......
The synagogue of satan's modern day money changers on the steps of the temple.
Does it seem like the governments doing everything in its power to destroy the people of the united states? Bad food ,bad drugs, funny money,healthcare, I could go on and on but the leaders are far from being experts on leading anything but all the money they can into there own pockets. All the news of our own health and problems are never reported on . I was reading a russian news paper and learned more about this country than I see on the nightly news programs. Hell I can see why the world hates us Were telling everybody how to run there lives and we can't run anything. Were not a free country were a communist country and every news article you read we have lost more rights.
Looking in from afar, i live in Thailand, here many influential people are talking about when they will be using the rimbi, chinese currency, They know at some future point in time the dollar will become a far less important currency than it is in today's world. BEN mad beyanky is destroying America single handily and from this part of the world he is doing an excellent job to boot.
You have become mesmerised by his magic. Alas only 4% of America's own a passport and this narrows their ability to see that many countries in the global world have stop throwing spears at each other and now drive new GERMAN cars and watch events unfold in your country with incredulity
You like the romans before you always assumed that their problems would come from their far flung empires not from Rome itself. History teaches us otherwise , Rome burt from within , so will America.
You probably hear people like me say that this was all predicted in the bible and it is in the bible.
Anyone hearing this, and the people responding to this understand the implications, they (the powers responsible for all this chaos) are in their end game and its too late for us to revolt. Forget it.
So what to do according to scripture? Flee, deliver thyself. Forget the canned goods and living in a tent in the woods.
Do you have a passport? Hello. They are closing the borders as we speak. It's the fema camp.
We just have to come out of our delusion and get the heck out of Dodge.
Love ya and God Bless you
Well the reality is that QE is going on and will most likely continue.
Granted the whole "QE program" is corrupt and dis-topic. However, it is probably a good idea to learn how to position ones self as best as possible.
I'm sure that the TSA will keep us safe. As soon as I can get my transporter beam working, I am going to say hosta lavista baby...
Too many bad U-tube videos starting wars... Funny how the wars and protest really get start up about the same time as the QE...
But it must be the bad videos? oh, well the big bad internet just needs to be regulated more so people don't get so offended...
S. E.
------------Please change my link to:
https://twitter.com/ezscott
as it did not publish very good on my last link. Thanks!
Anonymous from Thailand stated that only 4% of Americans had passports. That's old info. That was the case in 1989, but over the last few years there has been a rush for passports. Now it about one-third of the US population has passports as more and more people are looking for sanctuaries in places like Thailand or rural Canada or Argentina or almost anywhere else. Here's a Forbes article on the huge increase in US passport holders: http://www.forbes.com/sites/andrewbender/2012/01/30/record-number-of-americans-now-hold-passports/
http://americanexpatchiangmai.com
Oh, here we go again. God, the son and the holy ghost aren't doing anything but making otherwise good people willfully ignorant about global happenings. The here and now does count. I don't care about an afterlife. I care about this life! Only a man made god like the one spoken of in the Bible could get results like what we see today. Personally, I'm not impressed.
We are all F!!KED. PERIOD.
If you take the time to watch the webimar being advertised on the right hand corner of the screen (and NOOOOOO! I don't recommend anyone to buy into the scam he's selling but to actually listen to the first part of it because the dude makes a hell of a lotta sense), you'll learn that there is what is called the "cycle of empire" which has 7 phases. Phase #6 is inflation and that's the phase we're entering. Phase #7 is collapse which is just around the corner. It's amazing to see how the oligarchs are accelerating the demise of the empire. Whether unknowingly or not since they don't seem to have one brain put together among all of them and their only guiding light is greed.
S.E. said... "I'm sure that the TSA will keep us safe. As soon as I can get my transporter beam working, I am going to say hosta lavista baby..."
S.E., it appears that what you really want to say is HASTA LA VISTA (not hosta lavista). I suggest you do not move to Latin America...for your own good. :)
This is a Weimar, Germany 1925 Redux. As Alan Greenspan said: "we can always print money" [even if it becomes totally worthless].
What people outside the US cannot understand is that the citizens take all the things that are happening to their country with such indifference. They continue to amuse themselves with TV games, sports within a circle of freedom that is rapidly closing in on them and they are oblivious to it. They are a people living in the America that no longer exist - the corner drugstore in a neighborhood of upright, loving people who live in homes with white picket fences and rambling rose. The older citizens think it is not their task to change things; they figure it is too late in any case: the younger ones are too impressionable and believe what ever the maistream media tells them. They scream and applaud in agreement with whatever is said by the speakers at political rallies, whether or not it makes logical or political sense.
When are they going to wake up and do something ??
Yes indeed it is a great idea in the face of so many warnings and the obscene acts of Ben Bernanke and his crew to get the hell out of Dodge. Now I understand if someone takes more than a certain amount of this worthless
TP - one ply or two, he/she will be taxed; Hitler and Stalin have joined hands in our beloved America. God have mercy! God bless all!
It is not a plan for Utopia, which has never worked, but a common sense plan of going through some pain to clean the house and then peace of mind to observe it: a monetary system of sound money, backed by gold and silver, a deletion of such obscenities to American freedom as the NDAA, CISPA, any organized crime sydicate such as the non-federal Federal Reserve who beds down with the POTUS and Congress and the Military-Industrial Complex who puts food on the table by ceaseless wars - one in Afghanistan (did you see the photo of the soldier in the bowels of a ship, sitting on a pile of gold?), Pakistan oil and Libya (Gadafi at last would not take American dollars, only gold. I do not believe in my heart he was killed because he was "bad", for we have so many bad people in charge everywhere, why play favorites? We will be asked "Well, what would you do to fix things?" Simple answer, "First, do no harm. Second "Make the monetary system sound by issuring small 10c, 25c 1.00 piece of pure gold or silver for every dollar citizens turn in. Make it a permanent law that no cartel of bankers can control the lifeblood of our United States.
Make the best of your situation. Know that the hardships are over the horizon. Before they get here, accept that life will be a harder journey. Think about life without drugs, rather with supplements, with with basic needs coming first, rather than assumed. Position yourself for honesty in relations to others, and really follow the golden rule. Ghandi showed the way, how, without any power, the controllers will change direction. Expect free energy, and the glorious opportunities this will bring. And most important, don't be glum, the world is not going to end on 21 Dec 2012, rather be there and be astounded!
It looks to me like we are in for a long ride before the collapse, with continued inflation, understated by official sources. The prop-up process is preventing the collapse while continuing to give the banks yet another (sneaky but transparent to us) bailout. Until Congress takes back control of the money supply, and truly represents the people, or until the US can't pay it's bills anymore, the thievery will continue, either by taxes or by deficit spending and inflation.
Quantitative easing is a sinister plot and constructive fraud of the elite globalist banking CABAL that are member of the illuminai and are in collusion with the elite politicians and industrialist to destroy the middle class.
This financial crisis will still be further maginified by the effects of an economic crisis which will stop dealing on the exchanges and bring industry to a standstill. The international bankers shall create by all secret sub-teranian methods open to them, and with the aid of gold which is in all their hands, an international economic crisis which will throw whole mobs of workers on to the streets throughout all the countries of the world.
The international bankers from the very onset, their primary purpose was to confiscate all the gold and silver, replacing them with worthless federal reserve notes.
They have propered through the paper gimick. It is their method by which they take money and give paper in return.
Federal Reserve Notes stupidly called money are bills of credit. Gold is money. Anything else is credit. JP Morgan.
The debt surf slaves will have no other reason to exist except from the crumbs that the elite fling from their table.
QE 3 is going to cause commodities to go up at least 20%, especially food and energy soon we will be paying $5.00 a gallon for gasoline at the pump and $5.00 a pound for beef.
The main stream news media is not telling you that the real inflation rate is in the double digits.
The U.S. is curenly in a double dip, double digit inflationary recession that is progressing into a full blown depression.
What is happening is the change over to the NEW WORLD ORDER-a Global government in which the masses of faceless "little people" around the world are put under the powerful will of the elite group. Before the US can be merged into that world,the high standard of living that was made possible through the Constional Republic which guaranteed our freedoms and the pursuit of success,is being taken away to lower that standard in order to merge us with the poorer nations.
In order to survive this planned dowmward movement in our economy is for the people to stop buying imports and to produce what we need in our own country.Stop the outsoucing of jobs that Americans can handle.
The debit can easily be reduced by stopping all the Billions going out to other nations as foreign aid. Bring home our military scattered around the world will greatly reduce the military budget while our men protect our own nation from outside aggression.
The elite globalist banking CABAL of the NWO that are members of the illuminaii have abscounded with the national treasuries and usurped the peoples wealth.
When they appointed the necessary person into the international sphere of finance, the debt surf slaves began to pay them tribute of subjects and all the monies of the world began to flow into their cash boxes.
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