Quantitative Easing 3 (QE3), (QE4), (QEx)

In the pharmaceutical business, death is an “unintended outcome”.  What a polite expression!  Sanitizing events is done with positive and negative words.  In the political world it is called putting “spin” on the situation, spin the facts around to make a negative look like a positive.  This methodology is intended to sway the psychology of the masses into following the desired path of those in power.  It has generally worked in the past.  It is well known that the national media “sanitizes” the news to fit an agenda of the owners.  The term “politically correct” comes to mind.  Wikileaks upsets the status quo and paints a different picture of those in power.  When secrets are revealed, we now see the “character” of those involved.  It is interesting that attempts to hide the truth of any matter ultimately fails.  Ben Bernanke used his interview on "60 Minutes” to further the agenda of Quantitative Easing, or printing more money out of thin air.

What are the ramifications of quantitative easing?

Higher inflation, especially the essentials such as food and energy

Devaluation of you life savings, your dollars will buy less

Lowering interest rates, your life savings will not earn enough to support your retirement years

Allow big banks to continue their huge bonuses by giving them 0% loans to invest in 3% Treasury securities.  (Why can’t I get in on that lovin’?)

Risk of Hyper-inflation, Bernanke is in uncharted territory and there is no positive example that can guide him through this money printing efforts.

A meltdown in the Bond Market, if nobody buys U.S. debt, interest rates will rise rapidly and create serious losses.

Currency failure, history is sprinkled with similar attempts that have resulted in this outcome.  Are we smarter than all the historical figures of the past?

Gold & silver, energy, and food related investments provide the best “insurance” against loss of value if these rounds of quantitative easing continue to pump up the money supply.  Do not leverage yourself in these times.  Be safe.  Reduce your liabilities and monthly cash flow requirements.  Be nimble.

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