If You Think The Stock Market Appreciated After QE3, You Were Duped
But, amidst the rallies in the stock markets, the true story is elselwhere: the dollar index. The US Dollar since its August high of 84 has tumbled down to 78.89. This is not consolidation. This is a spasm on the longterm path of dollar devastation. So, while the stock market might be heading higher, keep in mind that once you cash out, it will be for United States dollars you will be inclined to unload as quick as possible. And, no, your broker will not allow you to cash out in gold – even if you’re holding GLD.
This new journey of QE3 provides clear short-term and long-term direction for the US Dollar, and that is down. In the meanwhile, investors look past this obvious underlying red flag and celebrate a rising stock market.
How QE3 Will Make The Wealthy Even Wealthier While Causing Living Standards To Fall For The Rest Of Us
So the first two rounds of quantitative easing made the wealthy even wealthier while causing living standards to fall for all the rest of us. Is there any reason to believe that QE3will be any different?
Of course not.
This time the Federal Reserve is focused on buying mortgage-backed securities. Yes, the same financial garbage that helped cause the last crisis. The Fed plans to gobble up tens of billions of dollars of that trash every month from now on.
But will the Fed pay true market value for those mortgage-backed securities? If you believe that, I have a bridge to sell you.
So this is going to be a huge windfall for some people, and that does not include us.
Not a single penny of this 40 billion dollars a month will go directly into our hands. The theory is that it will “filter down” to us eventually.
But that hasn’t happened with previous rounds of quantitative easing.
The Fed had no choice but to do this, and it will cause a world of hurt to everyone who is not already super-rich. And of course, the problem is, this is not an infinitely sustainable process, and will ultimately result in a complete economic collapse in this country.
Just looking at grocery store prices, it is a wonder how families are actually able to feed their kids, without resorting to the heavily GMO/corn-syrup laced products, just to keep stomachs full..... I can smell a revolution!!!!
The following user says Thank You to Victory Trader for this post:
Thanks for telling it like it is. However, I don't think the Fed had to do it, really. I don't know what they should have done, maybe nothing. None of those so called 'bankers' can really explain what this is supposed to do, besides (as you mentioned) make THEM rich.
Do you know what $40B/month is? How about $128/month for every person in the US! Or, what if they gave that $40B to households that have children (35,218,000), that would be $1,136,/mo! Wouldn't that boost the economy just as well if not better? Heck, that's 3 car payments! Maybe they should just use the money to by a GM Volt for every household!
The following user says Thank You to theoptionguru for this post:
Unemployment and Hopelessness. The Job Crisis and the US Elections
In reality, the jobs crisis continues unaddressed, and threatens to get worse after the election. The post-election “fiscal cliff” of social cuts — “triggered” by Obama’s debt commission —will pull the economy below the current treading-water phase, drowning millions more workers in America in unemployment and hopelessness. In addition, two million more long-term unemployed — those lucky enough to still receive benefits — face the very likely possibility of having their benefits ended due to the trigger cuts.But this is all part of the plan. The current jobs crisis is not accidental; there are public policies that could be implemented — such as a federal jobs program — that would stop unemployment in its tracks. Both parties agree that this cannot be done for the same reason: high unemployment is desirable since it acts as a sledgehammer against wages, lowering them with the intent of boosting profitability for corporations.
No matter who "wins"/(steals) as President, it will definitely be the American people who will be the real losers in November's election.
There is no real choice, or plurality in the American political process; each candidate has been thoroughly vetted by the biggest industrial and corporate tycoons doing business in this country, who have thrown their financial weight behind the candidates who will do their bidding. It is just as simple, and straightforward as that.