Page 1 of 5 12345 LastLast
Results 1 to 13 of 58
  1. #1
    Join Date
    Sep 2005
    Location
    Atlanta GA area
    Posts
    21,540

    QE3 (govt creating more money) is here... and expect price inflation to follow

    From a trusted source, this came along yesterday. I hesitated to post it... however it is IMO important.... enjoy tightening your belts thanks to BHO and the FED.

    Hidden Taxes!

    On 13-Sept-2012, the Federal Reserve declared outright War on the value of the US dollar. Everyone will be directly impacted by this policy shift coordinated with the European Central Bank. The central bankers are using monetary policy and their private monopoly on generating currency to conduct massive wealth transfer from the little people to a very limited few financial elite. Please read the article linked below to gain understanding and share it generously. As always, before forwarding please remove all email addresses for security purposes.

    I bet you will hear Joe Six-pack complain about foreign aid to Egypt et al - which is hundreds of millions to several billion dollars for each country annually - while almost no one will complain about the Fed's announcement of buying $40B/month of mortgage backed securities (MBS) for an indefinite period. Quick math: $1B/315M people = $3.18 per each man, woman, and child/$B X 40/mo = $127 X 12mo = $1,524/yr/person X family of 4 = $6,095/yr - added to our pro rata share of public debt. All of this done with computer keystrokes representing money that does not exist. And, that is only part of their shenanigans announced this time.

    Now, please call and write your Senators and insist on their support for the Audit the Feb Bill - ASAP - as it will be voted on very soon.




    The Federal Reserve announced the beginning of the much-anticipated "QE3" or "Quantitative Easing Three" program yesterday.

    There is the story in the press about why the Federal Reserve is taking this drastic and historically unprecedented action. And then there is the real story - which I would suggest is quite different.

    The linked quick analysis takes a look at the inflationary ramifications, how QE3 is different from previous "easings", the attack on the US dollar by the Fed, the potential for currency warfare, the increase in hidden taxes in the US, and why older and retirement investors will be the ones feeling most of the pain from this new redistribution of wealth.


    http://danielamerman.com/articles/2012/QE3C.html
    GA-HVAC-Tech

    Quality work at a fair price with excellent customer service!

    Romans Ch's 5-6-7-8

    2 Chronicles 7:14

  2. #2
    Join Date
    Sep 2012
    Location
    Central Florida
    Posts
    887
    QE3 AKA hyperinflation. zimbabwe here we come.

  3. #3
    Join Date
    Sep 2005
    Location
    Atlanta GA area
    Posts
    21,540
    Quote Originally Posted by Elfshadow View Post
    QE3 AKA hyperinflation. zimbabwe here we come.
    Good to see you understand this part!

    I preached the reality of govt printing presses causing inflation for 5 years here at ARP... it is just in this year folks are listening.

    No, I do not think we will go into hyper-inflation. Reason is the bond markets. Bonds will collapse, which will raise interest rates (no, the FED does not control all interest rates... they only set a few). When interest rates go flying upward... it will cause another recession. Problem is... inflating the money supply will not help in that kind of environment.

    There is a play-book of sorts if one studies the economy of the USA from around the mid 1970's to the end of the 1980's... and IMO we will see a lot of repetition... with a few twists of difference. Main difference will be moving faster and wilder swings... mostly IMO due to how FAST information flies around the internet.

    There it is again... history repeats itself... because history is based on what humans do... and human nature is almost predictable.
    GA-HVAC-Tech

    Quality work at a fair price with excellent customer service!

    Romans Ch's 5-6-7-8

    2 Chronicles 7:14

  4. #4
    Join Date
    Sep 2012
    Location
    Central Florida
    Posts
    887
    Quote Originally Posted by ga-hvac-tech View Post
    Good to see you understand this part!

    I preached the reality of govt printing presses causing inflation for 5 years here at ARP... it is just in this year folks are listening.

    No, I do not think we will go into hyper-inflation. Reason is the bond markets. Bonds will collapse, which will raise interest rates (no, the FED does not control all interest rates... they only set a few). When interest rates go flying upward... it will cause another recession. Problem is... inflating the money supply will not help in that kind of environment.

    There is a play-book of sorts if one studies the economy of the USA from around the mid 1970's to the end of the 1980's... and IMO we will see a lot of repetition... with a few twists of difference. Main difference will be moving faster and wilder swings... mostly IMO due to how FAST information flies around the internet.

    There it is again... history repeats itself... because history is based on what humans do... and human nature is almost predictable.
    We need higher interest rates. The holding down the rates have really harmed our recovery. Bernanke is no where near as smart as Volcker was the last time we had stagflation like this. I know they don't outright control all of the interest rates but the ones they do control massively effect the others. Its part of the reason so much money is just sitting outside of the economy at the moment, which might be a good thing to be honest, banks have no reason to loan out money when they are going to see much return on investment.

  5. #5
    Join Date
    May 2000
    Location
    Rochester, NY, USA
    Posts
    14,414
    My Dad sent me this earlier today:
    My financial analyst contacts are very happy in the short term (income from bonds and stock are up) and terribly worried in the long term (they see this as not helping unemployment and adding to the national debt). They think this is a desperation move and Bernanke throwing the citizens under the inflation bus of unemployment – the Fed had no impact from unemployment with QE1 and QE2 and it was never in all history been the job of the Fed to do anything about unemployment! On the matter of unemployment, the majority of citizens; 1) do not own or deal in bonds or stocks , 2) he is ignoring the fact that hyper inflation will be a real problem in the future, and 3) the cost of goods will be a serious issue at the same time – gold, silver, oil, gasoline have all risen quickly since the announcement. WORSE Ben has entered uncharted waters with this program -- unlimited duration of QE3 will add significantly to the national debt, who determines when unemployment makes a significant change, which is already a terrible problem, and no one (including Bernanke) has a clue on if this goes a long time what will happen to the economy. We have had 42months of unemployment over 8% -- Ben may be way over his head with unleashing unlimited QE3,
    LOVE has four letters

    So does BEER, DEER,GUNS AND FISH

  6. #6
    Join Date
    Sep 2005
    Location
    Atlanta GA area
    Posts
    21,540
    Good post Jmac! Regardless... IMO we are not gonna have much of a recovery for many years.
    GA-HVAC-Tech

    Quality work at a fair price with excellent customer service!

    Romans Ch's 5-6-7-8

    2 Chronicles 7:14

  7. #7
    Join Date
    May 2000
    Location
    Rochester, NY, USA
    Posts
    14,414
    there will be no recovery, ever. Unless we grow a generation that can live within their means
    LOVE has four letters

    So does BEER, DEER,GUNS AND FISH

  8. #8
    Join Date
    Feb 2009
    Location
    Canada
    Posts
    6,876
    Quote Originally Posted by ga-hvac-tech View Post
    Good post Jmac! Regardless... IMO we are not gonna have much of a recovery for many years.
    And by that time the Baby Boomers will be wanting to cash out their nest eggs, but who is going to give them what they think their houses, investments are worth? Supply and demand, there will be less people wanting homes when many of them will start thinking of downsizing, same goes for investments, with a lot of people trying to convert them into dollars their value is going to go down. Hopefully by that time China will grow wealthy enough to want to buy into the market so that we can retire comfortably.
    Never argue with a fool, onlookers may not be able to tell the difference. —Mark Twain

  9. #9
    Join Date
    Feb 2009
    Location
    Canada
    Posts
    6,876
    Quote Originally Posted by jmac00 View Post
    there will be no recovery, ever. Unless we grow a generation that can live within their means
    And the latest one has no concept.
    Never argue with a fool, onlookers may not be able to tell the difference. —Mark Twain

  10. #10
    Join Date
    Sep 2005
    Location
    Atlanta GA area
    Posts
    21,540
    Quote Originally Posted by jmac00 View Post
    there will be no recovery, ever. Unless we grow a generation that can live within their means
    Funny how hard times teaches lessons folks will fight until they no longer can.
    GA-HVAC-Tech

    Quality work at a fair price with excellent customer service!

    Romans Ch's 5-6-7-8

    2 Chronicles 7:14

  11. #11
    Join Date
    Sep 2005
    Location
    Atlanta GA area
    Posts
    21,540
    Quote Originally Posted by Elfshadow View Post
    We need higher interest rates. The holding down the rates have really harmed our recovery. Bernanke is no where near as smart as Volcker was the last time we had stagflation like this. I know they don't outright control all of the interest rates but the ones they do control massively effect the others. Its part of the reason so much money is just sitting outside of the economy at the moment, which might be a good thing to be honest, banks have no reason to loan out money when they are going to see much return on investment.
    Agree... Comparing Bernanke to Volcker... well there is not much of a comparison...

    IMO the reason interest rates were kept low was to 'try' to inflate the economy... cheap $$$ and all that. Seems it did not work.

    Higher interest rates would probably slow economic growth... whatever there is of it.

    I know this is not a popular viewpoint; however... Take away the govt safety nets... and watch how FAST folks learn to do whatever it takes to live...

    While I think we will have a re-run of the late 1970's and the 1980's... I also think there is a distinct possibility it will be more destructive and more folks will be victims of govt irresponsibility.

    And as J-Mac says... until folks become thrifty and learn how to WORK... there will not be much of a recovery.
    GA-HVAC-Tech

    Quality work at a fair price with excellent customer service!

    Romans Ch's 5-6-7-8

    2 Chronicles 7:14

  12. #12
    Join Date
    Sep 2012
    Location
    Central Florida
    Posts
    887
    Quote Originally Posted by ga-hvac-tech View Post
    Agree... Comparing Bernanke to Volcker... well there is not much of a comparison...

    IMO the reason interest rates were kept low was to 'try' to inflate the economy... cheap $$$ and all that. Seems it did not work.

    Higher interest rates would probably slow economic growth... whatever there is of it.

    I know this is not a popular viewpoint; however... Take away the govt safety nets... and watch how FAST folks learn to do whatever it takes to live...

    While I think we will have a re-run of the late 1970's and the 1980's... I also think there is a distinct possibility it will be more destructive and more folks will be victims of govt irresponsibility.

    And as J-Mac says... until folks become thrifty and learn how to WORK... there will not be much of a recovery.

    Higher interest rates would have meant more reason for banks to take risks and loan out money. We are currently in s situation with low saving. The majority of people are swamped in debt, until we eliminate that situation we will not recover. The problem is that unless you get some of the money actually moving in the economy, aka loans, people won't have the money to pay off their debts. I hate debt driven economics. This is the main difference between 70-80's and now. People had saving then, we don't now. It's what makes this period more like the depression, where everyone was credit happy.

    I want to take away the safety nets, for everyone, including banks a business's. Capitilism basics are founded on the idea of self interest tempered by risks, the govenrment has removed the risks that used to keep banks, and corporations, and people inline. It has given us a nation of people who don't fear being in debt, and banks and corporations that have no fear of making stupid decisions, because they are to big to fail and the government will step into fix it for them.

  13. #13
    Join Date
    Sep 2005
    Location
    Atlanta GA area
    Posts
    21,540
    Quote Originally Posted by Elfshadow View Post
    Higher interest rates would have meant more reason for banks to take risks and loan out money. We are currently in s situation with low saving. The majority of people are swamped in debt, until we eliminate that situation we will not recover. The problem is that unless you get some of the money actually moving in the economy, aka loans, people won't have the money to pay off their debts. I hate debt driven economics. This is the main difference between 70-80's and now. People had saving then, we don't now. It's what makes this period more like the depression, where everyone was credit happy.

    I want to take away the safety nets, for everyone, including banks a business's. Capitilism basics are founded on the idea of self interest tempered by risks, the govenrment has removed the risks that used to keep banks, and corporations, and people inline. It has given us a nation of people who don't fear being in debt, and banks and corporations that have no fear of making stupid decisions, because they are to big to fail and the government will step into fix it for them.
    While I disagree on higher interest rates... I fully agree with taking away the safety nets. Seems to me if the banks did not have the guarantee of govt bailouts... this mess would never of happened (mortgage loans to folks who could not repay would never of been made).

    Now for a question: Is there a relationship between a bank which will not loan $$$ unless the interest rates are 'acceptable' (meaning banksters get to make the profits they want); and govt safety nets for banks 'too big to fail' (personally, taking away the 'too big to fail' safety net would IMO do a HUGE amount to get the economy on a solid foot)?
    GA-HVAC-Tech

    Quality work at a fair price with excellent customer service!

    Romans Ch's 5-6-7-8

    2 Chronicles 7:14

Page 1 of 5 12345 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Comfortech Show Promo Image

Related Forums

Plumbing Talks | Contractor Magazine
Forums | Electrical Construction & Maintenance (EC&M) Magazine
Comfortech365 Virtual Event