10 Shocking Quotes About What QE3 Is Going To Do To America
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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 aprevious 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….
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2:50 pm
I would really like to see an article addressing whether our money is safe in US banks and brokerage accounts.
I would like to be able to pull my money out as well as take the penalty and cash in my Roth IRS ahead of the
herd if the system is going to come crashing down. Will securities withstand the collapse or should we be
100% into physical commodities i.e. gold, silver, stored food,seeds,alcohol etc….
3:16 pm
Buy physical silver bars and coins. Lots of inflation protection with precious metals. Many pundits feel it will rise much more than gold will (percentage wise). Then follow the preppers and buy guns, bullets and storable foods. This country is going to be wracked by massive inflation and anything purchased now, will be more expensive next year.
3:32 pm
My wife and I lived in Houston Texas for 32 years. During that time I pretty well ignored what Ron Paul was saying. Now it seems that what he has been warning us about is starting to happen. The eventual downfall of the entire financial system seems to be on the horizon.
4:28 pm
QE3 will eventually lead to 70's type inflation or worse. As stated in the article, if the dollars ceases to by the standatd currency, the US economy will collapse. We need to revert back to sane monetary policies.
4:37 pm
Creating money out of thin air cannot be good for us in the long run; never has and never will. Look at what happen to the German Weimar Republic, before Hitler came into power: It is not pretty!
5:56 pm
It makes me think "who controls the mainstream media"?
5:56 pm
Bernanke is destroying the financial infrastructural of the USA and the world. What's coming is going to hit us HARDER than what happened in Germany, Great Britain, Zimbabwe and Brazil. Get ready to buy a loaf for 50 million!
6:15 pm
people better wake up before they vote for Obama. he is going to ruin our country and make it worse then it is now. he supports the muslim world and he is against Isreal. he will not even talk to them. we need to stop him from weakening our money. i have had enough of Obama.
6:20 pm
Obama will soon become another Hilter if he gets relected. lets pray that he does not get to stay in office, he is a very dangerious man. i have been reading about him for year's. he has lied to everyone. he has the main stream new's people trying to hurt Mitt Romney from winning, he is saying all kinds of lies to hurt Mitt Romney.
6:54 pm
It is just another, MORE nails in America's economic coffin !!!
In a reasonably short time we, the U.S. was going to slowly (comparatively) become just one of the MAJOR economies, America, China, Germany, Brazil, etc. We definitely will/HAVE ALREADY damned ourselves to STAGFLATION DEPRESSION !!!! Our $ will be tossed as the RESERVE currency by the ALL central banks.
The Ultra rich become even more so and the shrinking, afflicted, middle class will disappear into poverty !!!
The newly developed petroleum/natural gas will to a large extent only enrich the ultra rich and those directly and somewhat related industries.
Employment will shrink as the technological world surges forward(not to mention the rest of the world continuing to produce cheaper and better !!!
Treasuries are already toilet paper.(the rest of the world has FINALLY noticed !!!
The $ will join it as it's lil brother as something you flush away !!!!!
7:00 pm
did the word 'damn" stop my comment ?!
7:30 pm
Why can't politicians hire economists and actuarians to teach them economics, they are all a bunch of lawyers that knows the laws but can't do simple math?.A must for all Congressman to go through some subjects in Economics. Any idiot should know that we cannot be spending money we do not have, and yet that is what they have been doing over the years, 50 years of Democrat controlled congress led us to this. One would think they can learn from their mistakes, but it is getting worst, and we taxpayers are the victims. They all get rich with their BDC investments at our expense. We are tired and sick of it…..Vote in Nov.
8:41 pm
It is just another, MORE nails in America's economic coffin !!!
11:42 pm
Money is a placeholder for a stated value for goods and services, an IOU. To return less value than was agreed upon is stealing. When an oversupply of money is printed it is devalued. Inflation is really dilution of money. When you dilute something you make it weaker. If you don't get what you earned you have been shorted. The book of Proverbs in the Bible speaks : "A false balance is an abomination of the Lord, but a just weight is his delight." And also states, "Whoever loves discipline loves knowledge, but he who hates reroof is stupid." We find, "Thou shalt not steal," in Exodus among other places. The point is to render the stated value of money as less than was promised is stealing, just as when someone uses a rigged balance or scale to measure out the goods you are purchasing.
3:19 pm
Obama pledged to not raise taxes on the middle class. LIAR, like Ron Paul says "Inflation is a tax on everybody."
2:03 am
Money without goods to back it up is posion , I am disabled and live on SS for the last 4 years and have seen my money buy less every month , At the rate this is going a major crash WILL happen soon. To fix this our country has to stop imports and REQUIRE all good sold here be made here or pay a huge tax that can be used to pay down the debt. Gold, food ,fuel Guns and anything that hold its value should be bought and kept!
2:22 am
If I were to counterfeit, yes, counterfeit money like this I'd be in the penitentiary by the end of the week.
7:49 am
Our politicians and the federal reaerve just seem to only care about the here and now
This shortsightedness is just like a teenager who takes up smoking. All they care about is the near future….today and tomorrow