This Is Not QE3 This Is QE Infinity!!!

reply to post by surrealist

How will this be inflationary unless the 40 billion per month becomes money that is spent?

Not sure why the doom and gloom?

It won't. It'll cause wackyflation (new word) if the fed does what they say they're going to do anyway.

I'm tired of people saying it will cause hyperinflation. Nobody is allowed to talk to me about hyperinflation unless their credit cards are maxed out and they're standing in the bank taking out the largest loan they can. Then they can talk to me about hyperinflation.

Then they can buy up all the food/supplies they can store with it. Then when we hyperinflate, they pay the loan back right? After all, it'll be EZPZ. They'll have stacks on stacks of hyperinflated cash right? But nobody does this because they know it won't work.

Everyone knows they won't be able to get their hands on any of that money. Therefore it can't cause hyperinflation.

All it is, is crap book keeping to make it look like the stock market hasn't crashed. The idea is to buy crap assets off the banks. Then the banks can loan money again and people can start buying again right?

But there's just one problem. Nobody has a job and everyone is already in debt. There's not enough people to borrow to cause hyperinflation. The money will just get invested in the stock market and create a big old artificial rally, then it'll just sit around in rich old people's bank accounts or something. The poor will never see it.

If anything causes inflation it'll be that nobody wants to buy oil using US Dollars anymore. That's the real concern.

QE3 isn't what's going to kill our economy. QE3 is the life support for an economy that's already dead. What they're worried about is deflation because nobody is buying crap.

Like I said, it'll probably cause wackyflation. Things old rich people buy will probably go way up in price. Things everyone buys like oil and food will probably go up somewhat in price. But they won't hyperinflate because the people just don't have enough cash in their pockets to make that happen.

Things nobody needs like new cars or computers may even come down in price. But eventually, if the economy doesn't start growing again I can't say what'll happen. Too many possibilities. Probably random sporadic riots or something as people get hungry.

I wanted to just point out how prices for things average people need are going up up and up, and its not based on future demand, its based on current dollar devaluation, because this is what this is.

US dollar index, and its drop in anticipation of QEI.
www.fxstreet.com...

Brent Crude Rises Towards $118 on Fed Stimulus
www.cnbc.com...

Gold Set for Even Bigger Bernanke Boost
www.cnbc.com...

All commodities are up an up big
www.cnbc.com...
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Originally posted by tinfoilman
reply to post by surrealist

Everyone knows they won't be able to get their hands on any of that money. Therefore it can't cause hyperinflation.

All it is, is crap book keeping to make it look like the stock market hasn't crashed. The idea is to buy crap assets off the banks. Then the banks can loan money again and people can start buying again right?

But there's just one problem. Nobody has a job and everyone is already in debt. There's not enough people to borrow to cause hyperinflation. The money will just get invested in the stock market and create a big old artificial rally, then it'll just sit around in rich old people's bank accounts or something. The poor will never see it.

If anything causes inflation it'll be that nobody wants to buy oil using US Dollars anymore. That's the real concern.

QE3 isn't what's going to kill our economy. QE3 is the life support for an economy that's already dead. What they're worried about is deflation because nobody is buying crap.

Like I said, it'll probably cause wackyflation. Things old rich people buy will probably go way up in price. Things everyone buys like oil and food will probably go up somewhat in price. But they won't hyperinflate because the people just don't have enough cash in their pockets to make that happen.

Things nobody needs like new cars or computers may even come down in price. But eventually, if the economy doesn't start growing again I can't say what'll happen. Too many possibilities. Probably random sporadic riots or something as people get hungry.

Couldn't have said it better myself.They tell you monetary stimulus, or easing of restrictions, or easing of corporate taxation will create a more friendly environment for businesses to start hiring again. They've (big business) virtually got everything they wanted. So, where are all the jobs? They're not there because the wealthy never intended on hiring people or creating a strong employment environment. Their intentions were solely to create an environment were they can profit as much as possible (also known as capitalism).It's like this argument that any form of wealth redistribution is horrible. When in fact wealth redistribution isn't the issue, wealth hoarding is. Just look at the overgrowing wealth gap between the rich and poor. You wonder why the economy isn't rebounding? Nobody has money anymore to buy products because damn near 25% of the population is unemployed.It isn't hard to figure out what the problem is. The ultra wealthy just won't advertise it because it's in direct opposition of their own interests. This isn't an issue that will self correct over time, anybody who really believes that is truly delusional.

I may be wrong so please correct me if so, but i think you guys are missing something here. The 40 billion is for mortgage securities.

The Fed 's pledge Thursday to buy $40 billion of mortgage securities a month until the economy improves comes a week after the European Central Bank announced its most ambitious plan yet to ease Europe's financial crisis by buying unlimited amounts of government bonds to help countries manage their debts..

LINK

So am i wrong in assuming that they are just preparing for the next market crash? If they are investing in property (as collateral on mortgage loans) Wouldn't this be the first step in the next land grab?

A mortgage-backed security (MBS) is an asset-backed security that represents a claim on the cash flows from mortgage loans through a process known as securitization.

LINK

So they devalue our currency buy making more, to buy mortgage securities, that will surly fail as our dollar continues to weaken. Hmmm sound kinda familiar. 2008ish.

Again I may be confused on the whole thing but that is what jumped out to me right away. What will be worth the most value if our currency is destroyed? Don't worry tho they will still need us to upkeep the property for them, maybe they will supply room and board for our labor. That too sounds familiar.

Keep it dirty

Originally posted by Wrabbit2000
40 billion a month... Ahh yes... another Half trillion added to the debt. Why not... We're already so deep in the septic tank, another bucket of turds thrown into the mix really doesn't change much either way but perhaps accelerate the fall a bit.
This is getting comical, even with the tragic reality of it.

Agreed. The punishment or criticizm is the same be it 1 trillion or 16 trillion just the way a robbery is a robbery/theft be it a toilet paper or expensive jewelry from a department store. I wonder if we will ever see the money come back to us that was sent to EU for the bailouts.

reply to post by 1947flxible


Insecurity makes people who have nothing else of value - go for the gold.

This way at least they possess something given a "real" marketable value in the business world.
Character, courage, talent and skill, pride and dignity, have not been given an estimated worth so they are all risky investments in a time of crisis. However to the already destitute, bribery works almost every time. At least this is the mindset and hope of those who accumulate wealth and focus on the rise and fall of the dollar as a hobby or for a living.

We are no more or no less than we ever were....regardless of the paper and the rocks.

Here we are.

Nothing has been taken away from us, removed from the planet. Nothing has been added that will harm us. Nothing but our own fear and preconceived notions of what it takes to survive.
We made up these rules. We put up all these hurdles, wrapped them in red tape and added the conditions. We placed value on all intangibles - even gold while real "survival" needs none of the cumbersome entrapment's. They are part of the shoppers Mecca, called WallStreet.

Same things need to be done.
Babies born, people fed and buried, buildings and roads built...it goes on and on.

We still have the able bodies and the will to complete these tasks. We can do it without Wall Street. We could organize, assign duties, and arrange a barter/exchange cooperative system if we had to. Wall Street creates a numbers game and has us following a "virtual world" that regularly crashes and burns, in a frenzy to get people to move their worthless intangibles. Just a game the commodities owners play and they are in it for the game. Which is why "workers united" scares the heck out of them. The games would end without them.

We can still do it all without the paper.
We can do it all without the gold.
We can still raise our families, love each other, eat, sleep, laugh and swim.
I think gold, like fur, should and will eventually morph into a social faux pas
worn only by the garish, grossest and most insensitive among the human classes.

Gold should be hoarded and saved, sure
but only for medical and scientific uses where no other metal will do.

"enjoy your wars and economic collapse"

so basicaly the fed is gunna print money when needed...wish i could do that

i wonder if china saying it will now use the yuan to sell and buy oil had an impact on the feds decision..

www.abovetopsecret.com...

dont got much time defore 12/21/2012...with all that is going on around the world...almost seems like 'they' are trying to make 'it' happen

yep, i noticed the trend at fxstreet.com......I knew beforehand that it was political .....so I stayed long on the euro....now a small dip and then buy all next week they couldn't let europe show a dip....politically

using politics to trade forex......I don't trade technicals on the chart....just think like the europeans. 24% per day the last three days.

That didnt take long

US Credit Rating Cut by Egan-Jones ... Again
www.cnbc.com...

CNBC can clearly see what i saw yesterday this is QE Infinity, everyone know what it is now.

Fed's 'QE Infinity': Four Things That Could Go Wrong
www.cnbc.com...

At some point, the proposed solution is going to be a standardized global currency regulated by an international body.

Originally posted by PatrickGarrow17
At some point, the proposed solution is going to be a standardized global currency regulated by an international body.

Of course it is. You're exactly right because you need the power of the petrodollar.

After the elections look to see if the eurozone collapses or not. That could be the start of it all, but that's another topic.

We probably won't see hyperinflation. That's not how our system works. Even if the money is there regular people can't access it without borrowing it. We have a debt based system and not a pure fiat system.

People's ability/inability to borrow will hopefully hold inflation in check. Except on things like gold/silver and things rich people buy. Like I said, you won't have real inflation. You'll have this random wackyflation stuff because some people can get money and others can't.

Gold is soaring, oil/food prices are going up, but your rent might just go down. Just because your landlord can't find anyone with a job to rent to. (The only reason I'm still in this crappy apt. That jerk tricked me I tell you!).

But as the dollar gets weaker more countries will stop taking it for oil. Oil will increase in price and therefore food will increase in price.

What might happen before hyperinflation kicks in is social unrest and random riots as it becomes too hard to make ends meet. It won't be classic inflation. Instead it'll be people not able to buy it, but yet the stupid price goes up anyway.

If it gets bad enough no other countries want the dollar then there won't be inflation. It'll just go from zero to a dead currency in a very short time.

If it happens then the solution they're gonna offer is an international reserve currency that's strong enough to accept for oil. Won't be able to buy or sell without it. They'll call it a new currency, but it won't be a new currency. It'll just be the petrodollar in disguise.

But the social unrest could start much sooner. We could already be there and just not know it. Ever notice how riots always start over stupid stuff? That's because not everyone gets mad or goes broke the same day.

People are always going broke and getting mad all around us everyday. Until something happens that trips everyone off at the same time. Like some guy getting beat up by a cop, or a shooting, or a natural disaster. Things that happen everyday, but all of a sudden just the right catalyst comes along to set people off.

Originally posted by xstealth
this is insane...

This is our economy on life support, it's only a matter of time before they pull the plug.

Yup; This "mook" Bernanke just leaned back in his chair adjusted his green visor and threw all his cards face up on the table:"Fella's, I'm out!"

Does anyone know how much truth there is to the federal reserve contract expiring in dec 2012? Is it true? I can find no such contract anywhere online. No information about it... nothing..... However, it would make sense to have a contract as the federal reserve is not even a part of the government. The government simply uses the federal reserve notes as its currency. If the contract were to expire, then that would mean the american dollar exipires with it. It will be like a coupon that goes past its date. Worthless.... So is it possible that in december of this year, the dollar and the federal reserve go belly up? I think this deserves looking into. Like really really looked into. Because to be completely honest, the governments actions the last few years would make complete sense if this was true. They spend without a care in the world, like they know its all going to be worthless soon. They are building huge underground bunkers, fema camps all over the country, and god knows what else. They run the debt like they never intend to pay it back. It would be very convenient for the contract to expire in december. This may also be why the federal reserve doesn't like to be paid in its own currency, and instead in gold certificates. They will own all the gold, the dollar will be dead, and they will once again have all the wealth while everyone else has absolutely nothing. Is any of this true??

reply to post by xxshadowfaxx


As far as I remember, but am too lazy to look up, the original central banks had set charters for like 20 years. Perhaps the fed's charter was 20 years or 99 years like some say, but it doesn't matter anymore. Later acts of Congress have long done away with those yearly charters.

As I remember, The Federal Reserve currently has an unlimited perpetual charter forever. However, this also allows Congress to revoke its charter at anytime if they want. They don't have to wait until December or 2013 or whatever random date people say. They have the power to do it tomorrow if they want. But they won't, and there's really no reason to right now.

What the fed is doing does technically make sense, but it's only because everything is so screwed up, they basically had to go full retard.

It's a great plan.

As life becomes tough in the US and people can't afford to feed themselves, etc, the Govt will start blaming all of the problems on the Chinese etc for not backing the Dollar (they're selling oil in the Yuan now).

The propaganda will flow, people will become angry and ready to go to war, and the idea of joining the military to make sure you get a meal etc will seem appealing.

You can see it all unfolding.