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14th September 2012, 08:36 AM
#14
Great Value Carrots
Re: QE3 is on! Open ended stimulus to infinity! Gold pops higher!!!
“Gold is money. Everything else is credit.” - - J.P. Morgan’s words to Congress in 1912
http://articles.marketwatch.com/2012...gs-gold-buyers
Long-time followers of ours on Seeking Alpha will know that we have been bearish on gold (GLD) ever since it hit $1900/ounce in August 2011. After today's shocking FOMC announcement, we are now long gold for the first time in a year.
http://seekingalpha.com/article/8662...time-in-a-year
The Federal Reserve essentially "crossed the Rubicon" today. No longer will quantitative easing be considered an "emergency measure". Rather, it will now be considered just another "tool" that the Fed uses in the normal course of business.
Considering how vulnerable the U.S. dollar already is, announcing an "open-ended" round of quantitative easing is utter foolishness. According to the Fed, when you add the 40 billion dollars of new mortgage-backed security purchases per month to all of the other "easing" measures the Fed is continuing to do, the grand total is going to come to about 85 billion dollars a month.
http://world.hawaiinewsdaily.com/201...-rain-money-2/
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