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The Fed and ECB's Fatal Mistakes Will Cost Us Dearly
The great currency collapse is now charging full steam ahead. Europe is now finding itself in the unappealing position of having wasted hundreds of billions of Euros on bailing out a minor player (Greece) only to now face debt Crises from two countries (Spain and Italy) that it can’t possibly bail out.
This is why the entire Greek bailout concept was so terrible to begin with. If you’re going to be facing a sovereign debt crisis and need to insure stability in the region, why bother shooting all your ammo at a minor player? The EU would have been much better off kicking Greece out (not to mention the Greeks want out anyway), and kept some dry powder to confront the REAL problems (Spain and Italy).
The same goes for the Fed in the US. Bernanke and pals spent some $900 billion between QE lite and QE 2 and accomplished nothing. Indeed, they didn’t even let the market operate without QE for four months before they started teasing that more was coming.
As a result of this, they’ve now shown that QE really doesn’t accomplish anything (the economy took a nose dive in a BIG way in 1Q11). And they’ve created a market that is completely dependent on more QE NOT to Crash.
Truthfully, if the Fed wanted to keep things going as long as possible, it would have let more time pass between QE lite and QE 2. That way the markets could have traded in a range with just enough juice to stay afloat.
Instead, the Fed pumped its brains out, pushed the S&P 500 up to 1,350… and now has no ammunition left what-so-ever (if the Fed announces QE 3 it’s GAME OVER as it will prove QE is a complete and utter failure).
Which comes back to my primary point over the last year: that at some point the markets will no longer respond to any Fed intervention, because it will be clear that the Fed can’t solve the problems facing the financial system.
When this happens, the result will make the 2008 Crisis look like a joke. After all, the only thing that kept the markets afloat then was investors’ faith in the Fed. Take that faith away… and you’ve got yourself a REAL Crisis.
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Good Investing!
Graham Summers
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What this article does not address is the mind set of the Oligarchy : Their whole thesis is building ONE central financial system world wide which THEY control. To serve golbalization growth on THEIR TERMS. ie: play the outsourcing game from nation to nation, the international labour arbitrage, pauperising successively each fledgling third world economy, nation state, sucking it dry, before moving on to the next one.
In this scheme of things if the European sovereigns and USA are the first to be hit as fat cat middle class bastions, needing financial thinning, so be it!
Their game plan is working fine. Their profits are in corporations and banks in stable off shore locations. When you belong to the .1% without any real allegiance to a nation state you are on mount Olympus and the rest are expendable mortals.
Capito???
So things are right on schedule. Let the games continue! This is the hidden reality of the world power game today.
Confused, convoluted : yes; game changer : yes; but right on direction.
"The great currency collapse is now charging full steam ahead. Europe is now finding itself in the unappealing position of having wasted hundreds of billions of Euros on bailing out a minor player (Greece) only to now face debt Crises from two countries (Spain and Italy) that it can’t possibly bail out."
As much as I wished for a different game-plan, I have to defend the ECB here - the German and French Governments were simply not willing to have their banks "take the hit" for this insane lending to Greece "as-if-it's-AAA-worthy".
Spain and Italy can't be bailed out - this is not the game. The game is getting through the next years while the Bankster Cartel is trying to use the CDS-weapons to squeeze some extra blood. If you have a look at the level of refinancing the two need in the next years, with the proper amount of AUSTERITY the problem is manageable. This silly ESFS is there to give a symbolic help and will cater the needs of the smaller patches of refinancing - in the future.
Of course, rates will rise in the future. This is inevitable.
qe3 is just 15 years away from a global currency based on completely exploited commodities and labor
.
not like its the end of the world
<quote><b>Instead, the Fed pumped its brains out, pushed the S&P 500 up to 1,350… and now has no ammunition left what-so-ever (if the Fed announces QE 3 it’s GAME OVER as it will prove QE is a complete and utter failure).</b></quote>
What is to prove, other than the loot was given to the wrong suits ..... twice. And how dumb is that?
Will the Chinese go along w/ QE3? At what price? They are building aircraft carriers with their trade surplus $$ and the info Bill Clinton's chinese donor friends stole from the US.
I think that Obama will change course a la Billary Clinton. Fed is out of it....ZIRP..but nothing else. Look out below for the next 6months.
stolen property is always costly
tax holiday for all, which the corporations do not want because they dont pay taxes now, and they spend all that money on lobbyists and PAC's to keep it that way.
A tax holiday for one year for all small businesses, and workers and corporations and everyone under the sun who pays taxes will do the trick. Spend one trillion on doing this
and problem solved. The gubbament and bankers do not want this as with no IRS no control over the people.
Too bad,
qe is the medical equivalent of blood letting....(and i am aware that some defend its practice)
quack...quack quack quack.....
<<As a result of this, they’ve now shown that QE really doesn’t accomplish anything>>
How wrong you are mi Amigo. Bankers were handed record high Mega Bonuses via TARP, QE1 and QE2. They (and Ben) think it worked perfectly.
And that accomplishment, PulauHantu29, has beautifully identified to the ravenous mob, that which and/or they whom they would have have to pay attention to, and seek redress from, for those perps with all of the QE perks, are the grand deluded architects of the great misfortune. But then nobody expects bankers, other than other bankers, to be exceptionally bright and so what else can one expect other than stupid capital mistakes with serious personal future consequences, whenever they are so dim and accountable.
"PS. We also feature two other reports, one outlining how you can purchase Gold at just $350 per ounce [...]"
Hey Tyler why do you feature this douchbag? If he could just buy Gold at $350 per motherfucking ounce he surely wouldn't be peddling reports and subscriptions!
Fuck it give me the gold source and I'll buy a mill of gold at $350/oz! And I'll flip it for, say, $1500/oz to all you ZH'ers.
Tyler you do yourself little favor referencing this crap! Why not interview Kiril Sokoloff rather than help Mr. Summers sell ginsu knives?
Here's my report and it's 110% free! Buy USO. Why? Because it's cheap and QE3 is coming ergo dollar cheaper ergo petrodollars buy less ergo oil spikes + MENA is ready to blow the fuck up when Isreal attacks Iran in Sept. You can motherfucking paypal me 10% of your USO earnings people after the fact -- that's how generous I am.
And the leprechaun giving away gold? I can't believe you believe in leprechauns!
I do like USO also....too cheap right now ...KOL also is Uber Cheap.
Just wait till California, Illinois and the rest of the broke states come crawling to D.C.
Counties, Cities and then States all defaulting and then bankrupt. Yippie, we need more Lawyers and Economist to yak away to oblivion.
"We are presently experiencing technical difficulties with our United States Dollar. We are working on the problem. Please be patient."
The Bernank
http://www.goldcore.com/sites/default/files/editor/goldcore_bloomberg_ch...
"Truthfully, if the Fed wanted to keep things going as long as possible, it would have"...PASSED THE MONEY TO THE DELINQUENT HOMEOWNERS WHO WOULD HAVE HANDED IT OVER TO THE BANKS.
Time means $hit. Reinflating bubbles by blowing air in torn holes was the problem.
They will do QE3, and it will be at a multiple of QE2. That way they will keep Ponzi going and achieve goal of devaluing the dollar
enough to make National debt sustainable. This will make debt holders angry but that's what you get when you lend to debt junkies.
They should make silver coin medals in memory of all the QE that have been launched and will be.
ALL AT THE VALUE OF 100$ vs. silver price from that time.
So for a QE1 coin that's about 7 ounces of silver
A QE2 coin is 4 ounces
A QE3 coin will be something between 1 or 1/2 ounce
A QE4 coin will be a pressed 1 grain of silver in a plastic holder
A QE5 will be 5 silver atoms
A QE6 will be 5 silver quarks
....
Blah blah blah get my 23 day free shit......Kermit the frog makes more sense than Graham Summers!
If Groundhog Day had an economist instead of an insurance salesman, his name would be Graham Summers.
This is exactly right and what I've said in a small market letter I circulate to a few friends. The other thing I tell them is to buy gold and get into cash as the market rally's in August in anticipation of QE III, which I have a feeling is going to not have any 'sand' to it. Geronimo!!!