What the heck is QE2?

[steyr_m]

I read an article followed from Rense, and they were talking about QE2 & QE3. I have no idea what it is; but have heard of it. Anyone have a simple answer?

New World Currency To Replace The Dollar Would Slay The Gold Bull Market
Nov. 10 2010 - 5:36 pm | 3,697 views | 0 recommendations | 1 comment


Beware of bankers meeting on weekends

QE2 will be followed by QE3 until we see “the end of the U.S. dollar standard,” a leading gold enthusiast and emerging markets expert, declared yesterday. No one can predict the timing, but the signal to sell all your gold will be an emergency economic meeting to create a new global currency, says Asia-based investment analyst Christopher Wood, who has been recommending gold as an investment since 2002.

Wood is on record as predicting that gold will sell over $3,000 an ounce some day. His portfolio allocation for U.S. pension funds includes 25% gold bullion and 15% gold mining shares.

Another signal that gold is in danger of big price slippage is when Ben Bernanke raises interest rates by 1/4 of 1%, but he sees no reasonable chance that would happen anytime in the near future– and certainly not unless there is inflationary growth in the U.S. economy.

“The biggest beneficiary of QE2 will be the Asian emerging markets,” says Christopher Wood, emerging markets analyst at CLSA. “Investors must be overweight these Asian markets,” because that’s where Bernanke’s buying of Treasuries will end up. Or investors can buy U.S. multinationals with major operations in the emerging markets.”

Wood says the stock market in China sells at the same market multiple as the U.S., and he believes Chinese banks and insurance stocks are especially cheap right now and due for a move. His biggest weighting is in India. Wood’s Asian portfolio of 25 stocks has gained 671% in value since late 2002, compared to the MSCI index, which has risen 217%. Wood’s portfolio picks have turned in an annual return rate of 28.9%.

Wood told a small group of journalists he did not believe that QE2 would work and that it will lead on to QE3, just as QE1 led to QE2. Because of expected weakness in the dollar, Wood recommended buying strong Asian currencies like the Singapore dollar, his favorite. He flatly predicted the Singapore dollar would rise in relationship to the dollar. One way to play Singapore is to own high dividend yielding stocks there, or to get a slice via the iShares MSCI Singapore ETF that trades under “EWS.”

He believes the economy will continue to be soft because of the foreclosure troubles facing the housing industry. Housing can’t recover until there is a clearing of all the homes in trouble, and this possibility is being held up by all the legal snafus and litigation. He also predicted that Portugal “would blow up” and believes the French banking industry faces an enormous problem in the $495 billion of loans they have outstanding with Greece, Ireland, Portugal and Spain.

http://blogs.forbes.com/robertlenzner/2010/11/10/new-world-currency-to-replace-the-dollar-would-slay-the-gold-bull-market/

[willie pete]

^^^^quantitative easing effort # 2

[Book]

Quantitative easing (http://=http://en.wikipedia.org/wiki/Quantitative_easing)

Basically printing money and causing intentional inflation.

:)

[steyr_m]

Quantitative easing (http://=http://en.wikipedia.org/wiki/Quantitative_easing)

Basically printing money and causing intentional inflation.

:)


So what was he talking about when he said "just as QE1 led to QE2" What was the QE1?

[steyr_m]

I have to say, some of this makes my head want to explode.....

Hold, buy more Silver, sell, QE2, China dumping US Bonds, Amero, Euro, Gold being "the biggest bubble in the world", buy more Gold..... arrrrrgggghhhh

[k-os]

It's a nice way of saying "printing money out of thin air".

[Ponce]

The real deal are made before the meeting, this year in Korea, the US keep on trying to tell the world what to do and the world has told the US to go to hell ....... Brasil was the first one to do so......the US is now an eagle without it's claws.

[Buddha]

QE is printing/making "money" to buy shit that is shitty to "help" the economy. Like mortgage backed securities, corporate debt, government bonds, etc...

[Fullpower]

QE-2 is the second round of Quantitative Inflation, numerically 75 Billion free federal reserve notes poured monthly on the flames consuming wall street.
The next round will be called QE-3, followed by QE-4,QE-5 and finally, culminating in Q.E.Z.
The last acronym stands for Qualities Emulating Zimbabwe.

[Libertarian_Guard]

It's a nice way of saying "printing money out of thin air".


I find this saying misleading. And sadly Ron Paul has been using it for years. In my mind, if money is issued without debt being created, then yes, I would agree that it was created 'out of thin air.' - - But this isn't the case, when fiat is created, debt is created.

[JFN111]

Limbaugh had a good definition:

Quantitative Easing. What the Fed announced yesterday at 2:15, didn't get a whole lot of attention. The stock market is going through the roof because of it. What is it? Quantitative Easing is where a country's central bank, i.e., the Federal Reserve, tries to boost the economy by increasing lending by increasing the money supply. How do they do that? Well, the Federal Reserve announced they're gonna purchase about $600 billion in Treasury securities. That's about $75 billion per month for the next eight months. This is the government printing new money to purchase existing Treasury securities that have already been issued and are currently owned. All right, so who owns them? Well, banks, Wall Street firms, insurance companies, pension funds, other governments. The purpose of the program, the purpose of QE2 is to reflate the economy, to create wealth via higher stock and bond prices, via inflation. It's another stimulus. They tried it once before. That's why it is QE2, Quantitative Easing 2.


http://www.rushlimbaugh.com/home/daily/site_110410/content/01125109.guest.html

[Libertarian_Guard]

Limbaugh had a good definition:

Quantitative Easing. What the Fed announced yesterday at 2:15, didn't get a whole lot of attention. The stock market is going through the roof because of it. What is it? Quantitative Easing is where a country's central bank, i.e., the Federal Reserve, tries to boost the economy by increasing lending by increasing the money supply. How do they do that? Well, the Federal Reserve announced they're gonna purchase about $600 billion in Treasury securities. That's about $75 billion per month for the next eight months. This is the government printing new money to purchase existing Treasury securities that have already been issued and are currently owned. All right, so who owns them? Well, banks, Wall Street firms, insurance companies, pension funds, other governments. The purpose of the program, the purpose of QE2 is to reflate the economy, to create wealth via higher stock and bond prices, via inflation. It's another stimulus. They tried it once before. That's why it is QE2, Quantitative Easing 2.


http://www.rushlimbaugh.com/home/daily/site_110410/content/01125109.guest.html


Did you mean this as a joke?

[madfranks]

So what was he talking about when he said "just as QE1 led to QE2" What was the QE1?


QE1 was some time last year when the Fed officially announced they were printing $300 billion in new money to buy US Debt in order to keep interest rates down. It didn't work, so now they've announced the second round of money printing, this time an official $600 billion. Unfortunately this is not lowering interest rates on long term Treasury bonds, in fact rates have risen almost 25% since this announcement. This is because international lenders want more return for their risk in the face of a rapidly debasing dollar. This will lead to the Federal Reserve being the primary holder of US Debt, and eventually the only remaining buyer, the buyer of last resort. Eventually the US will run it's deficits on nothing but freshly printed money, which will lead to the final destruction of the US dollar. My personal feeling is that the Dollar will be replaced before it collapses, but who knows really.

[Silver Rocket Bitches!]

Amerman had a nice article about a week ago that explained it in layman's terms rather nicely.


It's official: the Federal Reserve announced on November 3rd that it will create approximately $600 billion of new money to fund US Treasury bond purchases, and will also utilize another $250-$300 billion of money that had been previously created (also out of the nothingness). The usual term in the media for these planned purchases is "QE2", as in the second round of quantitative easing.

The "2" in "QE2" implies that this is something that has been done before. This implication is dead wrong.

"QE2" is radically different - and radically more dangerous - than the risky games that were played with earlier "quantitative easings". The Fed's current actions are all too likely to go down into financial infamy, and this brief article is intended to warn readers about some of the key differences this time around.

The most significant difference is that this time there appears to be no references to "sterilization" of the newly created money. It's likely good old-fashioned monetization in other words, with potentially quick and dire results.

It is also essential to note that the Fed won't be directly buying Treasury bonds from the US Treasury, but will instead be intervening in the Treasury bond markets. In other words, the Fed will be creating an artificial Treasury bond market, where it uses an unlimited amount of newly created public money to buy from private investment banks.

http://www.safehaven.com/article/18838/radical-difference-between-monetization-1-and-qe2

[Ponce]

To me all that is going on and what they are saying about the US economy is nothing more than a joke.....is like a bad book where in the last page you will find the final solution or answer.......the US is broke and in a deppresion with hell to come.

[Twisted Titan]

QE1&2 are the Prodgeny of R2-D2

Simple as that

[Olmstein]

RMS Queen Elizabeth 2, often referred to simply as the 'QE2', is an ocean liner that was operated by Cunard from 1969 to 2008. Following her retirement from cruising, she is now owned by Nakheel (a division of Dubai World). She was designed to primarily run a transatlantic service from her homeport of Southampton, England, to New York, USA, and was named after the earlier Cunard liner RMS Queen Elizabeth, and served as the flagship of the line from 1969 until succeeded by RMS Queen Mary 2 in 2004.

http://www.toffsworld.com/images/stories/travel/qe2.jpg

Hope this helps.:)

[solid]

Eventually there will be QE1000. Their lies and schemes are just a bunch of BS, they are printing money and enjoying it.

It's a bunch of kids playing with monopoly money.

An ounce of gold will always be an ounce of gold, same with an ounce of silver. Don't let those bastards make your head explode trying to understand what the hell they are doing.

Sleep easy at night knowing it really doesn't matter what they do...a can of beans is, and will still be, a can of beans when they are done with their printing presses.

[1970 silver art]

Eventually there will be QE1000.



I doubt that it will be called QE1000 because they probably will lose count after QE50. :D Like you said, they do not care. I wish that they would call it money printing and be done with it instead of calling it some fancy name. Just my opinion.

[1970 silver art]

RMS Queen Elizabeth 2, often referred to simply as the 'QE2', is an ocean liner that was operated by Cunard from 1969 to 2008. Following her retirement from cruising, she is now owned by Nakheel (a division of Dubai World). She was designed to primarily run a transatlantic service from her homeport of Southampton, England, to New York, USA, and was named after the earlier Cunard liner RMS Queen Elizabeth, and served as the flagship of the line from 1969 until succeeded by RMS Queen Mary 2 in 2004.

http://www.toffsworld.com/images/stories/travel/qe2.jpg

Hope this helps.:)


AH HA!!!!! So that is where the Fed is doing their money printing. :D I wonder how that ship stays afloat with all of the money printing going on there. :D

[JFN111]

Limbaugh had a good definition:

Quantitative Easing. What the Fed announced yesterday at 2:15, didn't get a whole lot of attention. The stock market is going through the roof because of it. What is it? Quantitative Easing is where a country's central bank, i.e., the Federal Reserve, tries to boost the economy by increasing lending by increasing the money supply. How do they do that? Well, the Federal Reserve announced they're gonna purchase about $600 billion in Treasury securities. That's about $75 billion per month for the next eight months. This is the government printing new money to purchase existing Treasury securities that have already been issued and are currently owned. All right, so who owns them? Well, banks, Wall Street firms, insurance companies, pension funds, other governments. The purpose of the program, the purpose of QE2 is to reflate the economy, to create wealth via higher stock and bond prices, via inflation. It's another stimulus. They tried it once before. That's why it is QE2, Quantitative Easing 2.


http://www.rushlimbaugh.com/home/daily/site_110410/content/01125109.guest.html


Did you mean this as a joke?

I'm not a huge Limbaugh fan but I actually thought he did a good job explaining it.

[mick silver]

when someone take what you have an sell it to someone else then give you nothing back that qe2

[Libertarian_Guard]

QE2 is just another name for "bailout" - - and it's much more than two.

How often can bailouts be used to save the day?

Every time they are used, the risk of a currency collapse increases.

We live in interesting times.

[vacuum]

So what was he talking about when he said "just as QE1 led to QE2" What was the QE1?


QE1 was some time last year when the Fed officially announced they were printing $300 billion in new money to buy US Debt in order to keep interest rates down. It didn't work, so now they've announced the second round of money printing, this time an official $600 billion. Unfortunately this is not lowering interest rates on long term Treasury bonds, in fact rates have risen almost 25% since this announcement. This is because international lenders want more return for their risk in the face of a rapidly debasing dollar. This will lead to the Federal Reserve being the primary holder of US Debt, and eventually the only remaining buyer, the buyer of last resort. Eventually the US will run it's deficits on nothing but freshly printed money, which will lead to the final destruction of the US dollar. My personal feeling is that the Dollar will be replaced before it collapses, but who knows really.


This sounds like an important observation. How many times before has the Fed bought bonds and the interest rates have increased? Anyone know?

[solid]

I doubt that it will be called QE1000 because they probably will lose count after QE50. :D


Good point. Maybe we should send Bernanke a letter, asking him to make us some silver art bars to help keep count. QE silver art bars. This way we can collect them, and all be a part of the printing fun.

Perhaps put a printing press on the silver art bar, and a slogan would be a nice touch.

QE1 Silver art bar: Press is getting warmed up, this is going to be fun. Let's go print some money, hell yeah.

QE2 Silver art bar: Full throttle now. Press is smoking and shaking. Giggidy.

....QE47 art bar: Ooops. Hyperinflation, collapse. Damnit, printing fun is over now.

[1970 silver art]

I doubt that it will be called QE1000 because they probably will lose count after QE50. :D


Good point. Maybe we should send Bernanke a letter, asking him to make us some silver art bars to help keep count. QE silver art bars. This way we can collect them, and all be a part of the printing fun.

Perhaps put a printing press on the silver art bar, and a slogan would be a nice touch.

QE1 Silver art bar: Press is getting warmed up, this is going to be fun. Let's go print some money, hell yeah.

QE2 Silver art bar: Full throttle now. Press is smoking and shaking. Giggidy.

....QE47 art bar: Ooops. Hyperinflation, collapse. Damnit, printing fun is over now.


I like that idea. I will become a silver art bar "consultant" and from there we can make the "QE" silver art bars until we reach

QE50 Silver art bar: United States of Zimbabwe.

From that point on, then we could maybe sell the whole set (QE1 to QE50) on ebay and get $10,000,000.00 for the whole set and then we will be rich beyond our wildest dreams and go anywhere in the world we want and drink the finest wines and have any woman that we want and....................OOOPS!!!!!!!.............Wa it a minute......................I need a loaf of bread and some orange juice from the store.................There is a price tag on that loaf of bread and the price says...........$1,000,000.00.............and...... ...........The price tag on the orange juice says..........GASP!!!!!!.............$4,000,000.00 :'( :'( :'( :'( :'( :'(

[solid]

From that point on, then we could maybe sell the whole set (QE1 to QE50) on ebay and get $10,000,000.00 for the whole set and then we will be rich beyond our wildest dreams and go anywhere in the world we want and drink the finest wines and have any woman that we want and....................OOOPS!!!!!!!.............Wa it a minute......................I need a loaf of bread and some orange juice from the store.................There is a price tag on that loaf of bread and the price says...........$1,000,000.00.............and...... ...........The price tag on the orange juice says..........GASP!!!!!!.............$4,000,000.00 :'( :'( :'( :'( :'( :'(


Think positive Josey! Our QE1-QE50 Silver art bar set will be worth much more than a hyper-inflated 10 million.

We'll own an island. You won't need to worry about orange juice from the store, a hot babe in a bikini will hand squeeze a fresh glass for you. She will also make you fresh bread. ;)

[1970 silver art]

From that point on, then we could maybe sell the whole set (QE1 to QE50) on ebay and get $10,000,000.00 for the whole set and then we will be rich beyond our wildest dreams and go anywhere in the world we want and drink the finest wines and have any woman that we want and....................OOOPS!!!!!!!.............Wa it a minute......................I need a loaf of bread and some orange juice from the store.................There is a price tag on that loaf of bread and the price says...........$1,000,000.00.............and...... ...........The price tag on the orange juice says..........GASP!!!!!!.............$4,000,000.00 :'( :'( :'( :'( :'( :'(


Think positive Josey! Our QE1-QE50 Silver art bar set will be worth much more than a hyper-inflated 10 million.

We'll own an island. You won't need to worry about orange juice from the store, a hot babe in a bikini will hand squeeze a fresh glass for you. She will also make you fresh bread. ;)




:ROFL:

Ok. I will try me best to think positive. How about if we sell them for $100 Billion dollars? That sounds like a fair price and that should be enough FRNs to buy an island, eat all the pepperoni pizza and drink all of the orange juice that we want, and to to buy a hot chick that make fresh bread for me. I like this idea better. ;D

[mightymanx]

The best explanitation to date in my opinion.

http://www.youtube.com/watch?v=PTUY16CkS-k&feature=player_embedded