"In the meantime, the implications for American investors should be clear. The Fed will try to conjure a recovery on the backs of currency debasement. It will not stop or alter from this course. If the economy fails to respond to the drugs, Bernanke will simply up the dosage. In fact, he is so convinced we will remain dependent on quantitative easing that he explicitly said he won’t turn off the spigots even if things noticeably improve. In other words, the dollar is screwed.” - Peter Schiff
We Have Been Warned! – Part 2
(October 2012 – QE inflation Iceberg Dead Ahead)
Voltaire said in 1729: “All paper money eventually returns to its intrinsic value – ZERO.” WE were warned – almost 3 centuries ago. Bernanke announced QE3 on September 13, 2012 – the next step in the process of pushing the dollar down toward its intrinsic value. Not only is the Fed making a commitment to purchase $40 Billion per month of MBS (mortgage backed securities) from large banks with “newly printed money,” it is also making an open ended commitment – there is no end date. Ultimately this is highly inflationary for the American public and very beneficial for the banks holding what is often referred to as “toxic waste” (MBS) that can be dumped onto the Fed at full face value. Hopefully the bailouts to the banks will allow them to loan that newly created money into the economy so it benefits real people and “Main Street.” Regardless, we have been warned about the consequences of printing money and the resulting consumer price inflation.
QE3 looks like a desperate act to feed money to large banks, offload MBS toxic waste from their balance sheets, and devalue the dollar against houses, commodities, and other currencies. There will be significant collateral damage but apparently funneling money to the banks is more important.
This article contains additional GREAT comments from Peter Schiff, Steve Saville, Daniel Amerman, Charles Hugh Smith and Ron Paul. Read it here:
http://news.goldseek.com/GoldSeek/1351005300.php
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
| 
