Skip to comments.The Federal Reserve Has No Practical Option To End QE (by James Sinclair)
Posted on 01/03/2013 6:31:29 PM PST by dennisw
The Federal Reserve Has No Practical Option To End QE January 3, 2013, at 6:07 pm by Jim Sinclair in the category General Editorial | Print This Post Print This Post | Email This Post Email This Post
Such an announcement has been part of QE either from MSM or some Fed board member since it began. The implication of stopping QE is so dire to the economy that it is in a practical sense impossible. When gold was being sold by central banks during the 1970s market announcements were made constantly with the bias to depress metals.
There is no way that the implications and consequences of what has been done up to now can be talked or manipulated away. There is no practical way that QE can cease here or in Euroland without a total and final collapse of the financial system. Just go back to the IMF report on OTC derivatives I posted this morning. If QE ceases, the US bond market collapses and the Fed must debt monetize all required debt, which means if QE stops, it starts up again immediately and in a crisis mode.
I have to admit that if you have been a reader here for any length of time you should know this without asking me. The pressure that people unload on me during any gold reaction is downright mean.
The statement that QE can stop is simply MOPE. QE cannot stop or the world ends as you know it.
Please print this out and post it on your computer because every time the long cycle guy repeats his year old bear gold price prediction or the Fed says anything about stopping QE, you all go wild. It is embarrassing really.
If you do not understand what you are in, why are you in it?
Truman said it all when he said if you cant stand the heat, get out of the kitchen.
The Federal Reserve has no practical option to end QE without ending the economic world for decades to come. Should that actually occur in some parallel universe, only gold will protect those citizens from the collapse of the by-default reserve currency. I am sure i have written this at least 200 times.
Kyle Bass recently revealed a fact about our government leaders:
Theyre not going to tell you that a collapse is coming. Youre going to have to see it for yourself. The governments never going to tell you that its going to happen. These guys are never going to tell you the truth, because they cant tell you the truth. Their job is to promote confidence, not to tell you the truth.
Thanks for posting. QEPlanned. What would a totalitarian do?
That’s why it’s called QE Infinity.
CIGAs = Comrades In Golden Arms
MOPE = Management-Of-Perspective Economics (i.e. happy-talk)
Option 1: stop expanding the money supply.
The crazy deal here and mass (hypnosis) illusion is that a private bank (the FR) buying USG debt can keep our economy afloat. The Chinese have dropped out of buying US Treasury debt. The Federal Reserve is now the largest buyer at the rate of one trillion per year.
The present economy stinks and is kept out of outright depression ONLY by the FR buying up USG debt thus injecting money into the economy
Yes those are the correct translations for Jim Sinclair abbreviations. I watched him on Wall Street Week 30 years ago....many times and would make a point of trying to see his appearances. No VCRs back then :)
hard to conceive of a good ending to this.
So who pulled 550 million out of money market?
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