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What Hath QE Wrought?
Submitted by Michael Gipp of The World Complex
What Hath QE Wrought?
First off, let's see how our deflation indicator is playing out.
The latest trend of rising gold and USDX is in its third month.
The last time we had a similar trend was in 2009. That ended with a massive blowout of QE. But a funny thing happened on the way to the bank. After four-and-a-half years, we wound up back where we started.
The ineluctable march of deflation.
And for context, a look at the bigger picture.
One lesson of all this is that if the system needs to deflate, the bankers and politicians who think they are in control can delay it, but not stop it. A little over four years later, we have picked up where we left off.
I would expect the central bankers of the world will try for another inflationary push at some point in the future. Maybe they will let deflation to run for a time to ratchet up the pain enough for the public to scream for more stimulus. I can't help but think that they decided to let deflation run for a bit just to chase out some of the 99.9% who were perhaps betting on continued inflation.
Deflation's the same in a relative way, but you're older;
Shorter of breath, and four years closer to death.
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Before criticizing someone, walk a mile in their shoes. Then when you do criticize them, you will be a mile away and have their shoes.
LOLO!
inflation, deflation
dont care either way, i gots me phyzz
...After 4.5 years of QE, Americans can note...
98% the wealth are in the hands of the 1% elite
98% have lost their freedom as per the Constitution
60% of the 98% live paycheck to paycheck
...please add...
How many people have died in the last 6 years and earned zero interest?
No shit QE was a futile effort!
Just look at the price of gas at the pump now.
Welcome to the abyss of a massively deflationary Greater Depression.
Well, it would not surprise me if Oil had went up because everything else (but PMs) did.
Goose the markets, goose the Oil price???
QE did what the mega-banks and Wall St. wanted, it made them richer. Of course they think they will be able to buy their way out of the disaster, after all it worked so well in France just before the guillotines started to fall.
.....retired on fixed income cannot get a good% return on their funds...
I don't have to outrun the bear....I just have to outrun YOU!
Jack Handey!
I hope that after I die, people will say of me: ``That guy sure owed me a lot of money.''
... I knew it Queen Elizabeth has something to do with this ... :)
"Deflation's the same in a relative way, but you're older;
Shorter of breath, and four years closer to death."
Can't we just delay until after my death?
Then my kids can deal with it, suckers!!!
+1 for use of Pink Floyd lyrics.
Shine on your crazy bullion.
100 million living off of govt bennies. .. holy fucking shit....
Any bells going off
Just make sure you ain't where the riots are.....
DEP- +1 for use of Pink Floyd lyrics.
Shine on your crazy bullion.
+1
Yeah , but I'm not comfortably numb...and that distant ship on the horizon isn't a cruiser...
You know we're screwed when technical charts are drawn with an Etch-a-Sketch, possibly by a 3 year old.
We inflated some folks.
A chart is supposed to provide a picture of a concept/obeservation without many words. You have to be on acid listening to the White Album playing backwards to makes sense of these pieces of shit.
They make every bit as much sense as the markets and I prefer backwards Beatles myself.... :-)
I thought all the Etch-a-Sketch people went away
QE had the effect of unearned profits.
And what happens when you give a kid money they have not earned?
Exactly.
For those that fear deflation, fear not.
Haven't you been to an auction where the starting price was too high? So they begin to lower it. Once the bottom is found, suddenly there are many willing to bid the price back up, sometimes higher than the original starting price.
It's called price discovery. And you should not be afraid of it.
'After 4 1/2 years we've wound up back where we started from'...just with shitloads more debt and even more obvious, shameless criminality by TPTB.
If they knew what they were doing, we would not have gotten into this mess in the first place....And now, we expect them to get out of this?...Not happen'n.....
I'll bet a Benjamin by June 2015 we're at all time highs in both the Dow and S&P.
1 Corinthians 2:9 The New World Order Version
But as it is written, Eye hath not seen, nor ear heard, neither have entered into the heart of man, the things which Lord Blankfein hath prepared for them that love him.And he sat down opposite the treasury and watched the people putting money into the offering box. Many rich people put in large sums. And a poor widow came and put in two small copper coins, which make a penny. And he called his disciples to him and said to them, “Truly, I say to you, this poor widow has put in more than all those who are contributing to the offering box. For they all contributed out of their abundance, but she out of her poverty has put in everything she had, all she had to live on.”
Thankfullly, after commisions and penalties she received half a penny the following week once she realized the error of her ways.
Revelation 6:8
I looked, and there before me was a pale horse! Its rider was named Death, and Hades was following close behind him. They were given power over a fourth of the earth to kill by sword, famine and plague, and by the wild beasts of the earth.
Oh they know what they are doing. Don't doubt that.
Just don't believe their reasons for doing it and for whom it is to benefit.
Hint: it's not for goyim cattle...it's TO goyim cattle.
You should also consider the possibility that they do know what they doing. You are just not aware of what their true objective is.
Have a look at "The Anti Capitalistic Mentality by Mises. You can download it for two bucks at Amazon.
He nailed it decades ago.
"He nailed it decades ago."
He certainly did, and with no apologies. It's an excellent little book.
I'd rather give my money directly to Libertarian Press than give a cut to Amazon.
You can download it free at Mises.
http://mises.org/library/anti-capitalistic-mentality
The big "D" deflation is the one boogyman that can keep the un-fed awake at night. They will run the pumps to infinity to stave off deflation.
If their facade starts to crumble then the con is over. So I think it's a safe bet as wiffs of deflation filter into their nostrils they will pick up the pace.
In the end the fiat banksters will lose, it is not going to be a pretty sight though.
There will be blood in the streets and lots of it.
It looks like people keep missing the point. We may be back where we started 5 years ago. But they were dead 7 years ago and yet they managed to kick the can , live the good life.
Die in 2008. Or. Hope for a miracle, if not, End up back where you started in 2015. The choice was a no brainer. The people could have stopped it , but didn't.
Fuck You Hank Paulson.
Back where we started. But moral hazard is out control. They may have mis-read that forecast.
Moral hazard a/k/a credibility may be the only "rule" safely extinguished by the monetary experiment. It died when debt became truly imaginary. Promises to repay are just words on paper when the government becomes a player.
That chart looks like my neighbor trying to find his way home from the bar last night.
...and he ended up right where he started -- at the bar.
his wife wasn't having it, or giving it, so he went back to where he's appreciated.
Sure. NOW they can let a little deflation through. The criminals unloaded their losses onto the public at face value and can now go shopping in the discount aisles of our shattered economy with the loot from their govenment sponsored heist.
This is exactly how Japan lost their two (plus) decades. Why are we following in their footprints???
What the hell is that last chart? LOL!
It looks like the perfect chart of where everything has gone the past few years...all meandering, all over the place, with no apparent goal in mind.
More like Tyler's handwriting
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Maybe they will let deflation to run for a time to ratchet up the pain enough for the public to scream for more stimulus.
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Umm… The pain of deflation? Stuff will cost less and my money I saved will be 'worth' more, have more purchasing power!?
Bring on the pain!
•?•
V-V
But the things the 98% have pledged and leveraged will cost less leading to bankruptcy when the calls are made.
So NO ! you shall not have cheaper because that puts the money lenders at huge risk.
I think you skipped over a few years, beginning in 2008.
success-mission accomplished..they are more wealthy, have more security than ever in history, all potential compitition burried under debt and regulations in the police HLS state..sure a few wars here and there, some members spot lighted for pediaphilia or rape of chamber maids, a little criminal theft with no controlling legal authority, MF global and it's gone- thank you captured DOJ/SEC.
the only threat they face is becoming too cocky. but corzine showed them they can never be too cocky, what is wealth and power for ?except to use it.
Jim Callaghan ex British Prime Minister Talking on BBC TV in 1976.
"We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists, and in so far as it ever did exist, it only worked on each occasion since the war by injecting a bigger dose of inflation into the economy, followed by a higher level of unemployment as the next step."
Says it all for what's coming really.
thye just steal 5 years from our future.
8 to 9 years time have a price tag of officially ~8 T USD, inofficially it might well be up to an order of magnitude higher.
If you have $1 million in the bank you can make $5000 a year in interest on it, if you are lucky enough to have a savings account paying .5%. Most retirees don't even have half that saved.
What the banks and the Fed did was try to force people with any savings to gamble it away in the stock market. Problem was people with savings had bills to pay so the money went towards that instead of stocks, leaving them with nothing after a few years forcing them to get a $8.75 hr job at Home Depot.
Death the the money changers, death to the bull worshippers.
THe largest credit bubble in the history of the world has burst. It is just a matter of time now until catastrophy strikes.
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
That the SEC July rule change allows/requires imposing big exit fees on money market accounts indicates they are afraid of liquidity drying up. When they can't get enough out of us to backstop everything, then more QE on the way, and looks like they will be using terror attacks as the excuse for the ramp.
"I can't help but think that they decided to let deflation run for a bit just to chase out some of the 99.9% who were perhaps betting on continued inflation."
Deflation is the completion of the inflation/deflation cycle. All cycles complete themselves. They can't prevent deflation from running.
Although they did forestall it for some years