The Fed will absolutely have to engage in some kind of QE. It might be a toned down version like QE lite (which supposedly doesn’t involve additional money printing). Or the Fed might try to make it a QE that would be more palatable to homeowners (targeting mortgage rates or some such thing).
However, the fact remains that the Fed HAS to continue with QE of some kind. The reasons for this are:
1) The $180+ TRILLION interest rate based derivatives market (90+% all of which are owned by the TBTFs)
2) The debt implosion a spike in interest rates would have
3) Having become the primary buyer of US debt, the Fed must continue to buy or risk a debt collapse in the Treasury market
Whether or not you like QE (yes, there are some insane people who think it’s a good idea… unfortunately they work for the Fed), this is the reality our financial system faces.
Indeed, if the Fed were to quit QE for good the resulting crisis would make 2008 look like a picnic (the 2008 collapse was triggered by the CDS market which was only $50-60 trillion in size, les than one third of the interest rate based derivatives market).
So more QE is on the way. Which ultimately will result in the US Dollar collapsing. In fact, the only reason the Dollar hasn’t collapsed already is because it’s priced against a basket of similarly flawed currencies.
In other words, we’re pricing junk (the Dollar) with other junk.
The whole point of all of this is that inflation is coming in a BIG way. What we’ve seen so far is nothing compared to what’s going to hit once the US Dollar breaks to new all-time lows (at the pace we’re going this will hit within two months).
Having since this coming, I’ve been shifting subscribers of my Private Wealth Advisory into extraordinary inflation hedges: investments that will outperform even Gold and Silver in the coming inflationary disaster.
To whit, since March 2010, our inflation portfolio is up 29% vs. the S&P 500’s performance of 14%. We’re currently sitting on gains of 17%, 34%, 35% and a whopping 176%.
To find out about my inflation portfolio… including the nine extraordinary investments in it… all you need to do is take out a “trial” subscription to Private Wealth Advisory.
You’ll then immediately be given access to the Private Wealth Advisory archives where you can find out the names, symbols, and how to buy all nine of these incredible inflation hedges.
You then have 30 days to decide if Private Wealth Advisory is for you. If at any point during those 30 days you decide it’s not, just drop me an email and I’ll issue a full refund NO QUESTIONS ASKED.
To take out a “trial” subscription to Private Wealth Advisory…
Good Investing!
Graham Summers
