Thread: QE3

I posted a thread asking how people would protect their wealth if the Dollar collapsed. My thread was an honest question but I was laughed at by a few members that called me crazy to suggest or ever believe that the Dollar could ever crash and become worthless. The thread was locked and since then I have posted very little here on L4P

Then I find this thread on QE3 and was surprised it was allowed. I have to say that following money and economics I have to agree with this recent article I am linking. I do not like Donald trump but further into the article the real story is hidden.

While Trump presents a gloomy outlook for the U.S. economy, he's hardly alone. In fact, other less known, but even more highly regarded and influential economists warn the situation is dramatically worse than even Trump understands.


Dr. Chris Martenson, a global economic trend forecaster and former VP of a Fortune 300 company, calls the U.S. economy "a ticking time bomb ready to explode." "I expect to see the collapse of sovereign debt any time now."

Trump: If Things Don't Change Soon "We're Not Going To Make It." - Money Morning

There are enough political stabs in that article to make you question its motive... However I shall watch that video and see what the fuss is about.

Cheers

we were talking about this in our economics class. Will it do more harm or good?

Originally Posted by Von Helman

I posted a thread asking how people would protect their wealth if the Dollar collapsed. My thread was an honest question but I was laughed at by a few members that called me crazy to suggest or ever believe that the Dollar could ever crash and become worthless. The thread was locked and since then I have posted very little here on L4P

Then I find this thread on QE3 and was surprised it was allowed.

Well because it was silly... just like the Doomsday Preppers show. If you want to hedge against depreciating currencies, invest in gold or in currencies you deem not to be depreciating. All QE3 will do is add more liquidity to the economy therefore pushing interest rates lower. In theory, this is supposed to spur growth.

Originally Posted by AXL

QE3 will have little or no effect on the overall economy. I believe we are in a liquidity trap and the only option left is fiscal policy.

Very Keynesian statement. We've already done that through several programs and it may have helped spurred some short-term growth, but another round of fiscal injections will probably do nothing but fill the news channels with more political waste.

Originally Posted by The New Black

The only option is to deflate the currency and start the depression now. However, that won't help political careers, so we'll print into massive inflation or hyperinflation and totally devalue the US dollar.

The politicians don't have a real say in what The Fed does... the Board of Governors are appointed by the President. And I don't get how your second option will help political careers either or how you get to depression from a country depreciating its currency or how we're printing into hyperinflation...

Originally Posted by Mr. Fancy

we were talking about this in our economics class. Will it do more harm or good?

Peter is an economic genius!

IMO, I don't think the topic is silly. It is the reason you have guaranteed 2% inflation for the next four years. That's 8%, but like we all know, the measurement isn't taking into account food or fuel costs, so it will be much higher. Knowing that at least 15% of your buying power in the dollar is being lost, I ask the question where is the real wealth.

Some good answers here too. Educating yourself on what is really happening. Like central bankers of the world pumping more money into economies that is backed by promises. Did anyone read the story about the paper shares of steel in China? The steel that was used for several different loans and now that there is a default on it, lenders have found out the steel isn't in the warehouse.

I've never seen "Doomsday Preppers", maybe the show is silly. But then again, having food, water, medicine and other things in your home in case of emergency doesn't seem silly to me. I grew up in FL, having that stuff during hurricane season is important. Ask those in Katrina. Hell, the CDC put out a warning for zombies (to preach preparedness) CDC - Office of Public Health Preparedness and Response: Zombies

Originally Posted by JasonV

Well because it was silly... just like the Doomsday Preppers show. If you want to hedge against depreciating currencies, invest in gold or in currencies you deem not to be depreciating. All QE3 will do is add more liquidity to the economy therefore pushing interest rates lower. In theory, this is supposed to spur growth.





Very Keynesian statement. We've already done that through several programs and it may have helped spurred some short-term growth, but another round of fiscal injections will probably do nothing but fill the news channels with more political waste.



The politicians don't have a real say in what The Fed does... the Board of Governors are appointed by the President. And I don't get how your second option will help political careers either or how you get to depression from a country depreciating its currency or how we're printing into hyperinflation...

His new book "The Real Crash" is excellent.

Schiff, Rogers, Martenson, Sprott, SGT... the list goes on and on. I praise their honesty and efforts to educate the public. However, less than 1% of us is getting it.

Originally Posted by BIG LUV

Peter is an economic genius!

The Monster from Jeckyl Island is also a good source on the FED.

Originally Posted by The New Black

IMO, I don't think the topic is silly. It is the reason you have guaranteed 2% inflation for the next four years. That's 8%, but like we all know, the measurement isn't taking into account food or fuel costs, so it will be much higher. Knowing that at least 15% of your buying power in the dollar is being lost, I ask the question where is the real wealth.

Some good answers here too. Educating yourself on what is really happening. Like central bankers of the world pumping more money into economies that is backed by promises. Did anyone read the story about the paper shares of steel in China? The steel that was used for several different loans and now that there is a default on it, lenders have found out the steel isn't in the warehouse.

I've never seen "Doomsday Preppers", maybe the show is silly. But then again, having food, water, medicine and other things in your home in case of emergency doesn't seem silly to me. I grew up in FL, having that stuff during hurricane season is important. Ask those in Katrina. Hell, the CDC put out a warning for zombies (to preach preparedness) CDC - Office of Public Health Preparedness and Response: Zombies

Inflation is required to 'grow' the economy.... inflation isn't some number that's pulled out of your rear-end. It's measured... and one of those measurements, one of the most referenced measurements is the Consumer Price Index (CPI), which tracks commonly bought consumer goods and services. So no, food and fuel costs rising, is inflation.

Central bankers policies are not backed by any promises... many can print in whatever quantities they deem appropriate. This money is not borrowed.

Agree or Disagreeing with policy is fine, but please do not scream 'fire' in a theater, when there is none, and expect to be met with pleasantries.