Posted on 11/03/2010 1:10:06 PM PDT by Hojczyk
The Federal Reserve launched a controversial new policy on Wednesday, committing to buy $600 billion more in government bonds by the middle of next year in an attempt to breathe new life into a struggling U.S. economy.
(Excerpt) Read more at cnbc.com ...
Buy a nice homestead out in the country with some areas of land and get it survialist ready.
Very interesting take, however based on other examples around the world, demonstrations and violence typically start when the government unions have their gravy train interrupted. Seldom have the producers started these activities. I think this is the bet Obama is making, specifically that he can sacrifice the private sector for the next two years while continuing to artificially support government entities. Case in point - WSJ today reported GM was getting a $40,000,000,000+ tax break. The UAW is essentially now a government supported union. I have seen riots in Detroit and I will guess I will see them again. His lifting the cap for bailing out the GSEs (Fannie & Freddie) also support this notion.
Find a safe place my friend.
Okay - Let me preface this - I’m no financial guru, whatsoever.
What does one do if they have cash sitting in the bank? What should one invest in right now, if anything? Real estate, gems...???
Please don’t slam me. I’m a lay(wo)man.
I must say....you Freepers have educated me more than any college could! Thank you!
And that’s exactly the reason why he’s doing it. Time to pile the blame for anything and everything on the GOP so the Rats can jump back on the ship in 2012. It’s all a pre-calculated move.
If they want boost our real economy they should loan this qe2 capital to US businesses at 0% instead of to our financial supermaket banks - who unload their crappy derivatives on to the fed and take the fresh capital and send it off to the hot money markets in thailand, china , singapore et. Further sinking our dollar as speculators sell those dollars and buy foreign currency and assets.
Yes but when we crash and the dollar is worth nothing,nada, zip and Obama fires up his speech in a teleprompter to say he saved us with a global currency and you can pick up your ID card at blah blah blah govt owned bank. Then what? (I know... Iknow... it sounds like a series of books I read,
it is nuts) but every other day I see an article on Drudge China... Russia.. blah blah wants world order/currency) the world is sitting by hammering for this waiting on us)
I thought last night meant something. I voted to stop this garbage. Leaving politics out of it; will the new speaker stop what has already happened (been announced) today?
Folks, I’ve said this before, and I’ll attempt to explain it again:
1. Inflation is ALREADY HERE, is HERE, and it’s rampant.
eg. the price of a 10 cent candy bar is instead .75 and upward. The price of a .37 gal of gas is instead 2.85 and upward. The price of a new 3000.00 car, move the decimal pt. is instead 30,000.00. The price of a college textbook at 10.00 is instead 50.00 and upward. The price of the above mentioned new car, is what the price of a new house was in the 1960s. And food, canned salmon over 2.00 and how about a can of cat food, just several years ago at .37 now over .50. Remember a trip to the dentist for just a check up and cleaning at 15.00 (I do), last visit just for for a cleaning and check-up 79.00.
2. This 600 billion (think about the de-sentization) that’s SIX HUNDRED B I L L I O N, and what is it?....
3. It’s a PAYOFF to the govt. pension funds of squandered retirements lost in the MBS (and the other junk acronyms) so called “securities” based on NON-PERFORMING fake loans”.
F A K E LOANS BECAUSE THERE IS NO COLLATERAL.
4. This payoff goes back to govt. pensions. It’s another bailout circumventing the Legislative Branch, and of course would never make it through the House Of The People now.
5. These payoffs mean the game of using public govt. retirements by investment so called “banks” (which quickly become “holding companies” remember with no consequences to themselves), goes on... and artificially props up what should have been a free market.
6. This money instead should never be in the hands, ever, of these “HOLDING” companies, (those that attempt to call themselves “banks”)to invest as they may. These funds should be in safe public escrow accounts..NEVER in the hands of ANY private entity.
7. As long as the above paradigm continues will leave an entire group free of any accountability. And will also constantly kick back losses to real U.S. citizens.
8. This time the bailout is less about rising prices ABOVE THE INFLATION ALREADY RAMPANT (#1 above), but about unemployment. Price pressure is equalized by mass layoffs and unemployment. (Notice how there was never any real sustained employment programs implemented by Congress?..and they don’t have a plan now) They are out to save themselves, which is why college grads struggle (and have been bought off from revolt up to age 26), and jobs are scarce. Employment is off-shored, away from govt. regulations, price pressure groups, and liabilities.
Time to SCREW SOROS and the FED! What will we do? What can we do. KEEL HAUL him/them? He and the FED deserve nothing less!
SOROS is the ultimate INSIDE TRADER! He’s making BILLIONS on this!
‘which would result in perhaps 20% inflation’
Bill Gross, is that you?
Very well explained thank you. So when does hyperinflation hit or has it? Soon to be $9 gas?
Desensitized is a good choice of words.
I voted last night to stop this garbage and this news hits.
I am angry.
I'm looking for real estate!
1) Do NOT have a single banking relationship. Find solid banks using something like this...
http://bauerfinancial.com/btc_ratings.asp
...and spread what money you have over a few solid institutions. Make sure at least one is based in your home town. Have ID’s and passwords for each account and don't keep them on your computer. Keep them handwritten in a “little black book” that you keep with you at all times.
2) Even in inflationary times, cash is king. Live within your means.
3) Buy used gold jewelry you like to wear. Keep it in a safe when not in use.
4) Real Estate might be an option if you have the means to maintain it.
5) Train yourself on the use of firearms and buy some high-end weapons that will retain/increase in value.
6) Learn to grow things like peppers, tomatoes and squash.
7) Get out of a big city if that is where you live now. Find a suburb with low crime statistics. Move now before everyone wants to. Get to know your neighbors.
8) Try not to owe anyone anything.
Rising input costs will mean another round of layoffs.
PS I have a new tagline.
I like number 7 because bartering will be an ideal way of life.
You are a troll, your link sucks.. folks,, don't go there.
You pretty much nailed it.
I reckon $500 bn might boost gold by some $500/oz. May see $2000 gold by Springtime?
I wish I had the data to do it but am sure a regression equation can be developed correlating the amount of oil price increase in $ and gold price increase in $ based on the amount of QE pumped into the economy over a given period of time, and how much the $ will decline against the Yen and Euro.. That would be a very useful predictive model.
One this is for sure is that prices have not gone down while jobs and demand dried up.
So where did the $2 trillion they already printed go?
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