Posted on 10/26/2014 7:02:25 PM PDT by blam
Stock prices obviously need to be in the Inflation Index calculations, Big Time.
LONDON (Reuters) - Unless it springs a major surprise, the U.S. Federal Reserve will call time this week on its program of government bond purchases, which at one point was pumping $85 billion a month into financial markets and the economy.
It won’t end.
“Quantitative Easing” is doublespeak for devaluation of the dollar and theft of value from savers and dollar holders.
Just QE3 ending. QE4 will start within 24 hours. There is still more to steal.
Goldbug ping.
Ping
Funny I heard a report that there is discussion that it is too soon ....
This should be an interesting week.
The dollar is way over valued just like the stock market. A relative since my wife a picture of a house her nephew just bought. It’s 2,000 sq. ft. and every house around it looks like a shack. But those houses are valued from 3 to 4 hundred grand. The house her nephew bought was $629,000! A year ago it was a around $350,000. That looks like a bubble to me.
Why would ‘quantitative easing’ be coming to an end? Our government is fatally addicted to the $80 billion per month that is being poured into government coffers.
You’re right.
End it just before the election? Even the Global Warming folks aren’t that stupid.
First of all, it wasn't dumping that money into financial markets. It was dumping that money into the US Treasury. Second of all, the term 'at one point' denotes October 2014 as well as each of the preceding 70 months.
“If the Federal Reserve and other global central banks were not printing money like mad, the global economy would have almost certainly entered a deflationary depression by now.”
The article makes that sound like some great problem, and it probably would be for some, but it’s what the economy naturally does to shed worthless ventures and drive money back to valuable investments.
And my parents talked me into starting an investment in a mutual fund earlier this year. Might have to talk to the gentleman doing it for me, though he showed me some charts on how the fund did during events in the past (Vietnam War, 1970 recession, 9/11, etc) and it always seemed to come back up. Here’s hoping my views on the economy won’t be proved the hard way for me.
“...$85 BILLION a MONTH...”
Let’s just let that sink in a little, shall we?
I agree with others on the thread...it won’t end. I do think the (not so) Federal Reserve will pause in an effort to see how the markets will react and whether the underlying fundamentals will provide some level of support.
There is some protections built into the market to keep from disaster all in one day. The unwinding of the markets will transpire over a couple of weeks with bounces in between.
Oh, by the way, I’m not a stock analyst, but I did stay at a Holiday Inn Express last night.
““Quantitative Easing” is doublespeak for devaluation of the dollar and theft of value from savers and dollar holders.”
Explanation in a nutshell
>>“...$85 BILLION a MONTH...”
Let’s just let that sink in a little, shall we?<<
Add also the Federal Reserve is holding close to 4 Trillion U.S. debt on it’s balance sheet.
They began monetizing our debt when foreign purchases began lagging. Pretty sad. Equivalent to paying debts with a credit card.
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