QE3

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dshields's picture
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QE3

This coming Friday (August 26th) at the annual Federal Reserve week long symposium in Jackson Hole - Uncle Ben is going to speak.  QE3 or no QE3 ?  There are arguments on both sides.  QE3 means more inflation.  No QE3 and the Fed Gov may not be able to sell Treasuries at low enough interest rates to make ends meet.  The Treasury has a lot of new debt to sell (Obama's fancy 2.4 trillion check) and a lot of old debt to turn over.  If there is a QE3 then Wall Street will be Happy Street.  No QE3 and no happiness.  The Fed Res will never let a Treasury auction fail - failure being defined as not being able to sell the debt because there is a lack of bidders.  So, QE3 or no QE3 ? 

http://www.zerohedge.com/contributed/qe3-or-not-qe3

 

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Re: QE3

The Bernanke has already said he'll do QE3.

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Johnny Oxygen wrote: The
Johnny Oxygen wrote:

The Bernanke has already said he'll do QE3.

Do you have a source for where he actually said he would do qe3? I know he's said it's an option but i've not seen him say it will definitely happen.

 

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jumblies wrote: Johnny
jumblies wrote:
Johnny Oxygen wrote:

The Bernanke has already said he'll do QE3.

Do you have a source for where he actually said he would do qe3? I know he's said it's an option but i've not seen him say it will definitely happen.

 

Sargen Says Bernanke to Likely Hold Off on Fed QE3
Washington Post - 21 minutes ago

Aug. 22 (Bloomberg) -- Nicholas Sargen, chief investment officer at Fort Washington Investment Advisors, talks about the Federal Reserve's policy on ...
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Conditions will warrant it

Bernanke Leaves Door Open to Further Easing

http://www.bloomberg.com/news/2011-06-23...

Federal Reserve Chairman Ben S. Bernanke left the door open to a fresh shot of monetary stimulus should the economic rebound he’s predicting fail to materialize.

The Fed would be “prepared to take additional action, obviously, if conditions warranted,” including the purchase of more Treasury securities, Bernanke said yesterday after U.S. central bankers met in Washington. The economy will probably overcome constraints from elevated energy prices and Japan-related disruptions to manufacturing, he said. Still, declininghome prices, high unemployment and weaknesses in the financial system may restrain the recovery in the longer term, he said.

I think its pretty obvious that 'conditions will warrant it" at some point in the near future.

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Johnny Oxygen wrote: I think
Johnny Oxygen wrote:

I think its pretty obvious that 'conditions will warrant it" at some point in the near future.

 

Oh I agree, just that I've not seen him confirm it's actually going to happen and the above source isn't a definitive greenlight. Perhaps this week though, or next.

 

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jumblies wrote: Johnny
jumblies wrote:
Johnny Oxygen wrote:

I think its pretty obvious that 'conditions will warrant it" at some point in the near future.

 

Oh I agree, just that I've not seen him confirm it's actually going to happen and the above source isn't a definitive greenlight. Perhaps this week though, or next.

 

 

What was that definition of "insanity" again....

 

goes211 wrote:
Travlin wrote:

Dshields

Gee, where have I heard this before?  Seems like I remember some guy telling us how all those newly elected Republicans from the last election were going to kick butt, take names, and turn this country around.  Wasn’t that the same guy who later concluded it had been naive to think the Republicans were really going to do anything different?  Now what was that guy’s name again?  

 

What was the definition of insanity?  Something about doing the same thing over and over and expecting different results.  

 

 

As with the elections and regulation, a system in which both 'public servants' are paid and funded by those very entities who are supposed to be the overseen and regulated, so the same with quantitative easing, which has only contributed to asset bubbles forming in emerging markets and commodities. It's free money for the rich to gamble with - more deaths and riots in the Third World. Perhaps that is their goal???

"The evidence suggests that QE cash ends up overwhelmingly in profits, thereby exacerbating already extreme income inequality and the consequent social tensions that arise from it," Joshi says in a new report.

http://www.guardian....ve-easing-riots

 It's a fundamentally corrupt system.

 

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Friday at 3 o'clock

Uncle Ben is scheduled to give his big speech this coming Friday at 3:00 pm in Jackson Hole.  He has hinted at some new program that would include asset purchases (aka QE3) several times in recent history but only if it looks like we are moving toward a deflationary period.  His view is inflation good and deflation bad.  Inflation is clearly bad.  I am not so sure that deflation is so bad.  I suppose it comes down to "bad for whom" ?  If I pay less for energy and food why is this bad ?  Of course deflation probably also means higher unemployment - that would be bad.  Right now there is inflation and the inflation is pretty bad no matter what the government says.  Go to shadow stats and check it out.  They keep changing the way it is calculated to make it look like less - a nasty lie.

Wall Street has become addicted to big easy money that comes from QE and its associated asset purchase programs.  I suppose big free money is pretty cool if you get some of it.  I do not get any of it.  I am trying to figure out if I can retire before I am dead (FDAK - Found Dead At Keyboard) and the top bank/fund people get more in their bonus that I will make in my entire life.  QE looks real good to them.  Another year of massive bonuses.  On the other hand, the new Bloomberg data on the secret Fed Res bailouts is shocking.  No wonder they did not want to give out the information.  You should check that data out.  The big banks were flat broke and were doing to close here and in Europe until Uncle Ben moved in and put up 1.2 Trillion dollars to float them.  That must be nice when you make a bunch of high risk bets and Murphy shows up and Uncle Ben moves in and pays you out to the point where the next years you get all time record bonuses.

 If Uncle Ben does not cough up big bucks for QE on Friday there will be a blood letting in the markets.

 

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Inflation is clearly bad. 

Inflation is clearly bad.  I am not so sure that deflation is so bad.  I suppose it comes down to "bad for whom" ?  If I pay less for energy and food why is this bad ?  Of course deflation probably also means higher unemployment - that would be bad.
 

A little inflation isn't bad, neither is a little deflation but we are talking about a lot of inflation and/or a lot of deflation.

High inflation and high deflation are two sides of the same coin. With high deflation your money is worth more but your wage drops significantly and money is hard to come by. With high inflation there is plenty of money around but it is virtually worth-less. So does it really matter?

I think the bullet is in flight and there isn't a damn thing anyone can do about it. We are just waiting for the impact.

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Treasuries Fall on Speculation Fed’s Bernanke to Will Signal Mor

Treasuries Fall on Speculation Fed’s Bernanke to Will Signal More Stimulus

http://www.bloomberg.com/news/2011-08-22/treasuries-fall-on-concern-drop...

Treasuries fell amid speculation Federal Reserve Chairman Ben S. Bernanke will signal additional measures to stimulate the economy, damping demand for the safest assets.

Rates on U.S. Treasuries show traders are betting Bernanke will indicate as soon as this week that the Fed will begin a third round of so-called quantitative easing to boost the economy, a scenario the world’s biggest bond dealers said is unlikely.

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Johnny Oxygen
Johnny Oxygen wrote:

Inflation is clearly bad.  I am not so sure that deflation is so bad.  I suppose it comes down to "bad for whom" ?  If I pay less for energy and food why is this bad ?  Of course deflation probably also means higher unemployment - that would be bad.
 

A little inflation isn't bad, neither is a little deflation but we are talking about a lot of inflation and/or a lot of deflation.

High inflation and high deflation are two sides of the same coin. With high deflation your money is worth more but your wage drops significantly and money is hard to come by. With high inflation there is plenty of money around but it is virtually worth-less. So does it really matter?

I think the bullet is in flight and there isn't a damn thing anyone can do about it. We are just waiting for the impact.

You and I agree.  It wasn't that hard was it ?  LOL

 

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Johnny Oxygen

It was very quite in the FX markets today.  Mondays are usually slow unless there are events over the weekend.  Today it was quite.  We did a little more that half the deals we usually do.  It is like everyone is waiting...

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dshields wrote: Johnny
dshields wrote:
Johnny Oxygen wrote:

Inflation is clearly bad.  I am not so sure that deflation is so bad.  I suppose it comes down to "bad for whom" ?  If I pay less for energy and food why is this bad ?  Of course deflation probably also means higher unemployment - that would be bad.
 

A little inflation isn't bad, neither is a little deflation but we are talking about a lot of inflation and/or a lot of deflation.

High inflation and high deflation are two sides of the same coin. With high deflation your money is worth more but your wage drops significantly and money is hard to come by. With high inflation there is plenty of money around but it is virtually worth-less. So does it really matter?

I think the bullet is in flight and there isn't a damn thing anyone can do about it. We are just waiting for the impact.

You and I agree.  It wasn't that hard was it ?  LOL

 

Maybe we just ushered in the apocalypse.

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Johnny Oxygen
Johnny Oxygen wrote:

Inflation is clearly bad.  I am not so sure that deflation is so bad.  I suppose it comes down to "bad for whom" ?  If I pay less for energy and food why is this bad ?  Of course deflation probably also means higher unemployment - that would be bad.
 

A little inflation isn't bad, neither is a little deflation but we are talking about a lot of inflation and/or a lot of deflation.

High inflation and high deflation are two sides of the same coin. With high deflation your money is worth more but your wage drops significantly and money is hard to come by. With high inflation there is plenty of money around but it is virtually worth-less. So does it really matter?

I think the bullet is in flight and there isn't a damn thing anyone can do about it. We are just waiting for the impact.

Word. Keep pushing on them preparations, CMers. Six months of food in your pocket is worth more than 100 ounces of gold. VIVA -- Sager

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Re:  QE 3.  Jim Rogers

Re:  QE 3.  Jim Rogers take  - in the first (of 5) segment of the interview - it's about 3:30 in from the beginning.  Turd Ferguson asks him about QE3.

http://www.tfmetalsreport.com/blog/2168/its-good-be-turd

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 sounds good to me will

 sounds good to me

will come back and leave further comments
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alijutt8 wrote:  sounds
alijutt8 wrote:

 sounds good to me

will come back and leave further comments

QE3 is happening in a number of different ways right now.  Nobody is talking about it.   Operation Twist and huge swaps with Europe.  They can not stop.  If they stop there will be a collapse. 

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It's funny....
dshields wrote:
alijutt8 wrote:

 sounds good to me

will come back and leave further comments

QE3 is happening in a number of different ways right now.  Nobody is talking about it.   Operation Twist and huge swaps with Europe.  They can not stop.  If they stop there will be a collapse. 

...that there's all this wondering-out-loud about QE3 and as near as I can tell, it's been going on for a goodly while now.  

U2 wrote a song called "Running to Stand Still", although it's a pretty mellow tune.  What's ongoing right now seems more like The Great Hamster Wheel Of Doom.  

One man's opinion...

Viva anyway -- Sager

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