QE3 to infinity! Special analysis and report on the FEDS stunning announcement to destroy the US dollar! Update Special 9 14 20

Special Report! QE 3 announced!

They say insanity is trying the same thing over and over again but expecting a different result. Your Federal Reserve chief Ben Bernanke is on board the asylum train but he has a new twist on it.

He thinks if you tried something over and over and it doesn’t work, just try more of it. In the latest move by the FED, Bernanke answered his banking masters call and initiated QE 3, or should I call it QE 3.Infinity?

Helicopter Ben brought out Henry Paulson’s Bazooka (your ex Goldman Sachs CEO and ex Treasury Secretary) and fired it and man, did he fire it.

Ben announced the Federal Reserve will open the flood gates by buying 40 billion worth of toxic mortgages a month and continue to do it forever if unemployment doesn’t improve or until he sees inflation. I highly doubt he will ever see that as we have had massive inflation for years yet he claims he sees nothing.

Not only is 40 billion/mo going to be printed up, he plans on “twisting” another 45 billion a month by buying long term US Treasuries  and continuing THAT until the end of 2012.

 

If that wasn’t enough, he promised to keep interest rates at near zero until 2015, which was a year longer then previously announced and THAT was a year longer then the announcement before that!

This announcement juiced the market as soon as it hit the news wires. Wall Street applauded the move of course, and even some “not in the know” Joe Sixpacks probably thought this was a good thing.  It doesn’t take a rocket scientist to put 2 and 2 together here. Poor Ben has lost his marbles and forgotten his economic history which is rife with examples of this strategy. Just think Zimbabwe, Mexico, Peru, Brazil, the Weimar Republic and a hundred other examples both past and present that followed this “pedal to the metal” printing press strategy.

ALL OF THEM ended badly with either bad inflation or REAL bad inflation. Although Ben claims there is no inflation, so did every central banker mentioned above right before the s..t hit the fan. Truly the nuts are running the asylum.

If you add the 40 billion in mortgage buys (going to the banks by the way) to the 45 billion in “Twist” Treasury buys, you get 85 billion a month in new money. Now compare that to the Fiscal Cliff cuts of a measly 100 billion a year! Big Ben will print up about 5 TIMES the amount those “mandated” cuts that everybody is afraid of and soon plan to renege on.

One might conclude the real reason Ben is doing this is to buy more toxic mortgages from the banks that are still broke and need MORE help AND to sop up all the Treasury debt no one else is buying because the US is really going into massive hock here.

Of course, now that were printing up even MORE, no one in their right mind would lend the US any money!  And around and around we go. Hold onto you hats, its going to get even more interesting, and probably a whole lot worse. Somebody lock that guy up please!

As for us, we hold firm to our Money Matters holdings. Maintain gold and silver holdings and stocks in those metals as well. Dividend payers will also help guard against the inflation that is coming. Foreign currencies are rising nicely so maintain those and add to everything. Offshore annuities are also my choice as is our other diversifications.

Gold skyrocketed with the announcement as expected. If the stock market starts to fall soon, that will be BAD news, as will interest rates rising. (They are rising as we speak).

If that trend continues, the jig is up and bad things cometh. No one knows WHAT will happen now and how the world will digest the massive amount of currency debasement the US has embarked on. A path almost impossible to reverse. One of these times the printing press method WILL NOT WORK, and when that day comes, all hell will break loose.

On that note, I will say NOW more than even its important you prepare or at least understand what is about to happen. We have the remedy on September 28th, Money class 1. This 3 hour class will go over all you need to know to start protecting yourself. (Meal included as well).

Email us to sign up. It is filling fast. 11:00 am or so in Alta Sierra right off highway 49.

Money Matters will air next Thursday September 20th at noon on www.kvmr.org .

Tune in, now more than ever !

 

All for now,

Marc