QE3 on Friday???

[Large Sarge]

Alright, even with electronic voting, most politicians just want to get re-elected and "kick the can" down the road... so to speak...

and under Austrian economics, inflation does not show up for 12-18 months after the initial injections, takes that long to wind its way through the system.

Jeff Berwick and stephen Molyneaux discuss it, and refer to the lag time in the interview below

http://board.freedomainradio.com/forums/t/30668.aspx

Richard Maybury has mentioned the same time frame also, for lag time...

So anyway with that premise in place, and Elections in Nov 2012 being 15 months away....

I think they want a little inflation, before the election, because inflation from their perspective is a signal of economic growth..... (Keynes)

So I am saying we get QE3 on friday, and it will be medium to big in size...

[JohnQPublic]

The market's are twisting the Bernank's arm right now to be sure he does it. If he says no, all heck could break loose (stocks and everything about gold crash). If he says yes,stocks zoom up, gold softens, silver/Pd/Pt drop- for a little while (and 1970 maintain's his no $50 silver prediction unless it makes it by the announcement, which at this point looks really pretty possible).

[Spectrism]

What can Bernanke do that he has not already been doing?

They already buy the treasury notes. They already send trillions to international banks.

If they do decide to pump more "liquidity into the market, the prices of silver and gold will skyrocket. If they don't come up with more free money, the stock market will sink.

[Large Sarge]

Big Bank Failure

if no money is forthcoming....

Gold Smells it...

[osoab]

Near as I can figure, bennie's speech at Jackson Hole was on 8-27 last year.

Here is the August chart for Au.

http://www.kitco.com/LFgif//auaug10.gif

I don't think gold is acting in the same manner as last year.

http://www.kitco.com/LFgif//auaug11.gif

Who the hell knows at this point? Too many black swans out there for me at this point in time. Libya (waiting for Gadaffi to go bezerk), Euroland (take your pick there), Chavez and his 40 boats of gold (I can't believe they actually are getting gold shipped back to S.A.), Japan (Fukued), China (fraud galore), and then the shit going on here. Hell, maybe Krugman might get his alien invasion.

I think bennie is between a rock and a hard place. Damned if he does and damned if he doesn't. The way bonds have been reacting, yield on the 10 year might approach 1% on QE3 launch.

[Large Sarge]

poticians/bankers are always going to take the path of least resistance/pain "kick the can down the road"

I think a Big U. S. Bank is on the verge of failure... and in bankruptcy all those derivatives come to term....

one other thing to remember, awhile back on pakalert website (about the only website to ever cover "Israel did 9/11"), they had a story that China was unleashing a secret financial weapon against the U.S.

are we seeing symptoms of the secret weapon?

[osoab]

I really don't think it matters. The loose money is there. I think the news report I read last week said Credit Card issuance was up 27% either m/m or y/y. Bennies QE3 will only go so far as to maybe propping up the stock market. I am not convinced that they can make it work this time.

http://www.finviz.com/futures_charts.ashx?t=YM&p=d1http://www.finviz.com/fut_chart.ashx?t=YM&cot=124601,124603&p=d1

It took about 9 months to get 30% then the whole thing went to shit.

Maybe if bennie comes out with a 2-3 trillion number we might see the results they want. Might as well dazzle them.