QE2 is just Obama’s end-a-round-run of the incoming republican majority.
He will be able to claim the markets are improving he will be able to show gains in the GDP falsely inflated by 500 billion worthless dollars.
Inflation will be “blamed” on the Republicans and if the dollar slides and fails Obama would then seek UN help in the form of monetary (world currency) oversight (authority). Thus his pro socialist agenda is not dead just re-navigated.
If the future value of the dollar is in jeopardy what institution in there right mind would loan money out today to be repaid at a much lesser value?
Again all of this will be skillfully spun as to blame those greedy Republicans.
Obama is only too happy to have the Republicans in charge when he and the Fed crash the economy.
Post of the year! You nailed it to a tee. I wish I could fit your post as a sig quote. It needs repeated. It is the truth very well stated.
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?