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Dollar Plummets As Expectations Of QE3 Spread
While it is not surprising that the Swiss Franc is surging almost as much as silver in today's flight to safety episode, and even "value investor" Whitney Tilson is rumored to be shorting Netflix again after topticking his cover with immaculate perfection, what is a little disturbing is that the dollar has plunged to the lowest levels since February 3. The reason, of course, is that with global unrest spreading like Molotov cocktail fire, and implied US GDP plunging by 5% in the past week on the hike in oil prices, it is becoming very evident that the recovery myth is now over, despite claims by the NAR charlatans, and another round of quantitative easing is almost inevitable. What that means for the dollar is precisely what one can see on the chart below. As for the use of funds in the upcoming QE episode, perhaps the Fed can instruct the Primary Dealers to go out and buy some WTI this time instead of just crowding into Apple and REITs...
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The space between the rock and the hard place is getting tighter and tighter.
I remember what RP said to Bernank back in '07, "there's a dollar crisis out there and peoples money is being stolen, people who have saved they're being robbed"
hoenig! STFUp! history does not love a bubble buster! god bless the bernank.
http://thehardrightedge.com/the-dollar-index/
Marc Faber is the man!
http://truthisliberty.blogspot.com/2011/02/marc-faber-02222011-alex-jone...
ben's QE3/4/5/6 was part of the plan - pentagon's $701b budget cannot be increased, so good ol' US of A will use other means to achieve chaos in the moslem world to facilitate the chaos needed for obama's re-election. nobel peace laureates cannot be seen as starters of wars, but nothing stops princeton economists from starting more than one. Obama may not use bush scare tactics to get re-elected, but the american public is just as naive as in 2004, so a little rumored attack on US soil from gaddafi's assasins, any crisis at all will be enough to seal the deal for Obama's second term. You gave the buffoon a second term on some homeland security alerts, why not a second term to obama?
as for the use of proceeds of QE3/4/5/6, fret not: the US deficit of $1.5tr for next nth years will make sure the "money" (aka toilet paper) is quickly doled out to various pork projects.
Dont think it would be easy to have another round of QE or QE3 to be more precise as Republicans would definitely block it. Besides, many Fed presidents are hawkish toward QE and I am sure Ron Paul would have something to say....