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10 Shocking Quotes About What QE3 Is Going To Do To America
Michael Snyder
Ready or not, QE3 is here, and the long-term effects of this reckless money printing by the Federal Reserve are going to be absolutely nightmarish. The Federal Reserve is hoping that buying $40 billion worth of mortgage-backed securities per month will spur more lending and more economic activity. But that didn’t happen with either QE1 or QE2. Both times the banks just sat on most of the extra money. As I pointed out the other day, U.S. banks are already sitting on $1.6 trillion in excess reserves. So will pumping them up with more cash suddenly make them decide to start lending? Of course not. In addition, QE3 is not likely to produce many additional jobs. As I showed in a previous article, the employment level did not jump up as a result of either QE1 or QE2. So why will this time be different? But what did happen under both QE1 and QE2 is that a lot of the money ended up pumping up the financial markets. So once again we should see stock prices go up (at least in the short-term) and commodities such as gold, silver, food and oil should also rise. But that also means that average American families will be paying more for the basic necessities that they buy on a regular basis. The most dangerous aspect of QE3, however, is what it is going to do to the U.S. dollar. Most of the rest of the world uses the U.S. dollar to conduct international trade, and by choosing to recklessly print money Ben Bernanke is severely damaging international confidence in our currency. If at some point the rest of the world rejects the dollar and no longer wants to use it as a reserve currency we are going to be facing a crisis unlike anything we have ever seen before. The real debate about QE3 should not be about whether or not it will help the economy a little bit in the short-term. Rather, everyone should be talking about the long-term implications and about how QE3 is going to accelerate the destruction of the dollar. The following are 10 shocking quotes about what QE3 is going to do to America…. #1 Ron Paul “It means we are weakening the dollar. We are trying to liquidate our debt through inflation. The consequence of what the Fed is doing is a lot more than just CPI. It has to do with malinvestment and people doing the wrong things at the wrong time. Believe me, there is plenty of that. The one thing that Bernanke has not achieved and it frustrates him, I can tell—is he gets no economic growth. He doesn’t do anything with the unemployment numbers. I think the country should have panicked over what the Fed is saying that we have lost control and the only thing we have left is massively creating new money out of thin air, which has not worked before, and is not going to work this time.” #2 Peter Schiff, CEO Of Euro Pacific Capital “This is a disastrous monetary policy; it’s kamikaze monetary policy” #3 Michael Pento, The Founder Of Pento Portfolio Strategies “This is the nuclear option for them. This is a never-ending weapon that is being fired at the middle class” #4 Donald Trump “People like me will benefit from this.” “Quantitative easing—a fancy term for the Federal Reserve buying securities from predefined financial institutions, such as their investments in federal debt or mortgages—is fundamentally a regressive redistribution program that has been boosting wealth for those already engaged in the financial sector or those who already own homes, but passing little along to the rest of the economy. It is a primary driver of income inequality formed by crony capitalism. And it is hurting prospects for economic growth down the road by promoting malinvestments in the economy.” #6 John Williams Of Shadowstats.com “That’s absolutely nonsense. The Fed is just propping up the banks.” #7 Marc Faber “I happen to believe that eventually we will have a systemic crisis and everything will collapse. But the question is really between here and then. Will everything collapse with Dow Jones 20,000 or 50,000 or 10 million? Mr. Bernanke is a money printer and, believe me, if Mr. Romney wins the election the next Fed chairman will also be a money printer. And so it will go on. The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down.” #8 Mesirow Financial Chief Economist Diane Swonk “I think this will end up being a trillion-dollar commitment by the Fed” #9 Federal Reserve Chairman Ben Bernanke “I want to be clear — While I think we can make a meaningful and significant contribution to reducing this problem, we can’t solve it. We don’t have tools that are strong enough to solve the unemployment problem” #10 Credit Rating Agency Egan-Jones “[T]he FED’s QE3 will stoke the stock market and commodity prices, but in our opinion will hurt the US economy and, by extension, credit quality. Issuing additional currency and depressing interest rates via the purchasing of MBS does little to raise the real GDP of the US, but does reduce the value of the dollar (because of the increase in money supply), and in turn increase the cost of commodities (see the recent rise in the prices of energy, gold, and other commodities). The increased cost of commodities will pressure profitability of businesses, and increase the costs of consumers thereby reducing consumer purchasing power. Hence, in our opinion QE3 will be detrimental to credit quality for the US….” We have reached a major turning point in the financial history of the United States. It would be hard to overstate how much damage that QE3 could potentially do to our financial system. If the rest of the world decides at some point that they no longer have confidence in our dollars and our debt then we are finished. Sadly, the mainstream media does not seem to understand this, and most Americans gleefully believe whatever the mainstream media tells them. So what do you think about QE3? Please feel free to post a comment with your opinion following this article….
Delivered by The Daily Sheeple Contributed by Michael Snyder of The American Dream. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream , The Truth and Economic Collapse Blog. Please share: Spread the word to sheeple far and wide
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QE has not worked in the past. QE3 will do further damage by continually weakening the dollar. If you brew a perfect pitcher of ice tea and then find there is not enough to serve your guests you can step to the sink and add another gallon of water. The tea is so watered down it becomes very distasteful. Our dollars are becoming very watered down and to the rest of the world, very distasteful!
I can’t wait to have my very own stack Trillion Dollar bills.
So if I have no job because their Q1 and Q2 didn’t work. And I can’t get a loan from the people who are sitting on 1.6 trillion dollars.How come I can’t print my own money? Whats good for the goose is good for the gander?For some reason its illegal for me to do that.Maybe its because I have to “obey” their laws and they don’t have any!!!
The truly bizzare thing is the banks store their 0% infusion in the feds wharehouse and the feds pay intrest on the “deposited funds”, so you really can get money for nothing.
I think I need to become a “banking house” and apply for my couterfiting licensce while the cash is worth more than the paper its printed on.
Where is the secret service while this is being done, I thought they were supposed to prevent counterfitting,, and ensure our currency is protected.
Very soon we will be using dollar bills for toilet paper.
The single most defiant act you could make to disenpower the criminal banking cartel is to own and personally hold physical silver or gold. This one act takes the power over money from those that would minipulate and enslave us with fiat currency and give the power of honest commerce to the holder of silver.