Wanted, The now Republican dominated Congress might prevent QE4....

First 16 Last

Share
Profile

Follow
23skidoo

2,731 Posts.

107

06/01/15

11:55

Post #: 14542071
Share

Originally posted by wantedman ↑

Well i would say it formost says something about FIAT currencies against the only real money which can not be printed out of thin air.
Not so long ago 1 Euro bought 1.20 AUD, today you get 1.48 AUD for 1 Euro. So the AUD is even weaker than the EURO midterm.
The 1,000 Euro mark is significant because we are talking about the largest economy on planet earth if you consider the EU as "one economy". This is not some struggling third world nation. The same is true for Japan.
The US will eventually follow, once it becomes clear to the worst economic forecasters of all (which are of course the central bankers) in what shape the US economy really is (23% unemployment, 46 million people living on food stamps and sinking real wages)

Central bankers above all else fear deflation, and will do everything they can to get an inflationary outcome in the long run , which can best be seen from their actions over the last years. Remember QE1,2,3 and Operation Swift ? All failed to revive the US economy. Nevertheless the FED will almost certainly start QE4 at some point, which will of course fail as well. But they will most likely eventually succeed in getting the inflation they so desperately need to cope with all those debt piles out there. And i am sorry for all those who aren’t in hard assets at this point in time.

And to conclude with some of my favorite quotes: (can't remember who stated the first)

"If you believe in the integrity and honesty of governments, keep your FIAT money if not you buy gold"

"With the exception only of the period of the gold standard, practically all governments of history have used their exclusive power to issue money to defraud and plunder the people."
Friedrich August von Hayak

"All previous attempts to base money solely on intangibles such as credit or government edict or fiat have ended in inflationary panic and disaster."
Donald Hoppe

Expand

Wanted,
The now Republican dominated Congress might prevent QE4. Remember it was mainly Republican resistance to QE and the rescue of the banking system in 2008 but they were up against a newly elected Obama. Now, with tables turned and clear evidence that QE doesn't trickle down to provide widespread productive investment, I think Congress will be ill-disposed towards "QE to infinity".
23.
3 Upvote

0 Great analysis

Reply