I Said QE 3 Isn’t Coming… And the Fed Agrees With Me

I’ve said many times before that QE 3 won’t be coming any time soon unless the market Crashes or a major bank goes under. The reason is that QE (and Ben Bernanke for that matter) have been politically toxic: we’ve already seen that the Fed will be a major political issue in the 2012 Presidential election.

The Fed is aware of this; at least the more astute members who have an interest in preserving their careers.

Kocherlakota-need for more Fed easing ‘unlikely’

A top Federal Reserve official who opposed the U.S. central bank’s move last month to ease monetary policy signaled Tuesday he may balk again if fellow policymakers opt for still more stimulus this month.

“The data in August did not justify the additional accommodation provided at that meeting,” Minneapolis Federal Reserve Bank President Narayana Kocherlakota said in remarks prepared for delivery at the University of Minnesota’s Carlson School of Management. “It is unlikely that the data in September will warrant adding still more accommodation.”


Kockerlakota now joins Dallas Fed President Fisher in establishing himself as a hawk: one who opposes additional easing. I fully believe Bernanke will be stepping down within 18 months (even Obama won’t shelter him). When that happens, a more hawkish Fed Chairman will be picked. Looks like Kockerlakota is putting himself in the running for the job.

So all claims that QE 3 is just around the corner needs to consider what will happen if QE 3 isn’t announced in September. What happens if the markets DON’T get the additional easing that the bulls are hoping for?

Have a look at what happened in early August and you’ve got your answer. Indeed, I fully believe we have reached the End Game for Fed Intervention: a time when the Fed can no longer maintain control of the markets. What will follow will make 2008 look like a picnic.

Indeed, I fully believe that the financial system is now more in danger of systemic collapse than at any point in history (including 2008). Do NOT be fooled by the rally of the last few days. We saw rallies of 8%, 11%, even 17% during 2008. Those investors who bought into them got taken to the cleaners.

Things are so dangerous that I’ve had Private Wealth Advisory subscribers open our Crisis Trades: the trades we used to produce triple digit gains during the 2008 Crash.

We’ve also prepared our personal finances and loved ones for what’s coming (Crashes, civil unrest, food shortages, bank holidays and more) with my Prepare Your Family, Prepare Your Savings, and Prepare Your Portfolio reports.

If you’ve yet to take steps to prepare your portfolio and your loved ones for what’s coming, NOW is the time to do so while the markets are still holding up.

Because once the selling pressure comes back into the markets (a matter of days) it will be too late.

To take action now, pick up your copies of my Prepare Your Family, Prepare  Your Savings, and Prepare Your Portfolio reports and join my private client list in receiving my bi-weekly market analyses and real-time investment alerts, all you need to do is take out a “trial” subscription to Private Wealth Advisory

To do so… and start preparing for a Crisis that will make 2008 look like a picnic (heck just look at the first leg down that occurred in early August)…

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Best Regards

Graham Summers


Posted by Phoenix Capital Research