The Beginning Of The End Ad
Gold Buying Guide: Golden Eagle Coins

Recent Posts

The Preppers Blueprint Economic Collapse Blog Get Prepared Now Ad

Enter your email to subscribe to The Economic Collapse Blog:

Delivered by FeedBurner

QE4? The Big Wall Street Banks Are Already Complaining That QE3 Is Not Enough

Share on FacebookTweet about this on TwitterPin on PinterestShare on Google+Share on LinkedInShare on StumbleUponEmail this to someone

QE3 has barely even started and some folks on Wall Street are already clamoring for QE4.  In fact, as you will read below, one equity strategist at Morgan Stanley says that he would not be “surprised” if the Federal Reserve announced another new round of money printing by the end of the year.  But this is what tends to happen when a financial system starts becoming addicted to easy money.  There is always a deep hunger for another “hit” of “currency meth”.  Federal Reserve Chairman Ben Bernanke was probably hoping that QE3 would satisfy the wolves on Wall Street for a while.  His promise to recklessly print 40 billion dollars a month and use it to buy mortgage-backed securities is being called “QEInfinity” by detractors.  During QE3, nearly half a trillion dollars a year will be added to the financial system until the Fed decides that it is time to stop.  This is so crazy that even former Federal Reserve officials are speaking out against it.  For example, former Federal Reserve chairman Paul Volcker says that QE3 is the “most extreme easing of monetary policy” that he could ever remember.  But the big Wall Street banks are never going to be satisfied.  If QE4 is announced, they will start calling for QE5.  As I noted in a previous article, quantitative easing tends to pump up the prices of financial assets such as stocks and commodities, and that is very good for Wall Street bankers.  So of course they want more quantitative easing.  They always want bigger profits and bigger bonus checks at the end of the year.

But at this point the Federal Reserve has already “jumped the shark”.  If you don’t know what “jumping the shark” means, you can find a definition on Wikipedia right here.  Whatever shreds of credibility the Fed had left are being washed away by a flood of newly printed money.

Those running the Fed have essentially used up all of their bullets and the next great financial crisis has not even fully erupted yet.

So what is the Fed going to do if the stock market crashes and the credit market freezes up like we saw back in 2008?

How much more extreme can the Fed go?

One can just picture “Helicopter Ben” strapping on a pair of water skis and making the following promise….

“We are going to print so much money that we’ll make Zimbabwe and the Weimar Republic look like wimps!”

Sadly, the truth is that money printing is not a “quick fix” and it never has been.  Just look at Japan.  The Bank of Japan is on round 8 of their quantitative easing strategy, and yet things in Japan continue to get even worse.

But that is not going to stop the folks on Wall Street from calling for even more quantitative easing.

For example, the top U.S. equity strategist for Morgan Stanley, Adam Parker, made headlines all over the world this week by writing the following….

“QE3 will likely be insufficient to significantly boost equity markets and we wouldn’t be at all surprised to see the Fed dramatically augment this program (i.e., QE4) before year-end, particularly if economic and corporate news continue to deteriorate as they have over the past few weeks.”

Did you get what he is saying there?

He says that QE3 is not going to be enough to boost equity markets (the stock market) so more money printing will be necessary.

But wasn’t QE3 supposed to be about creating jobs and helping the middle class?

I can almost hear many of you laughing out loud already.

As I have written about before, QE3 is unlikely to change the employment picture in any significant way, but what it will do is create more inflation which will squeeze the poor, the middle class and the elderly.

The truth is that quantitative easing has always been about bailing out the banks, and the hope is that this will trickle down to the folks on Main Street as well, but that never seems to happen.

Wall Street is not calling for even more quantitative easing because it would be good for you and I.  Rather, Wall Street is calling for even more quantitative easing because it would be good for them.

A CNBC article entitled “Fed May Need to Boost QE ‘Dramatically’ This Year: Pros” discussed Wall Street’s desire for even more money printing….

The Federal Reserve’s latest easing move has been nicknamed everything from “QE3” to “QE Infinity” to “QEternal,” but some on Wall Street question whether the unprecedented move will be QEnough.

And of course everyone pretty much understands that QE3 is definitely not going to fix our economic problems.  Even most of those on Wall Street will admit as much.  In the CNBC article mentioned above, a couple of economists named Paul Ashworth and Paul Dales at Capital Economics were quoted as saying the following….

“The Fed can commit to deliver whatever economic outcome it likes, but the problem is that  the crisis in the euro-zone and/or a stand-off in negotiations to avert the fiscal cliff in the U.S. may well reveal it to be like the proverbial Emperor with no clothes”

An emperor with no clothes?

I think the analogy fits.

The Federal Reserve is going to keep printing and printing and printing and things are not going to get any better.

At this point, economists at Goldman Sachs are already projecting that QE3 will likely stretch into 2015….

The Federal Reserve’s QE3 bond buying program announced earlier this month could last until the middle of 2015 and eventually reach $2 trillion, according to an estimate from economists at Goldman Sachs.

The Goldman economists also wrote in a report that they believe the Fed will not raise the federal funds rate until 2016. This rate, which is used as a benchmark for a wide variety of consumer and business loans, has been near 0% since December 2008. The Fed said in its last statement that it expected rates would remain low until mid-2015.

So why is Wall Street whining and complaining so loudly right now?

Well, even with all of the bailouts and even with all of the help from the first two rounds of quantitative easing, things are still tough for them.

For example, Bank of America recently announced that they will be laying off 16,000 workers.

In addition, there are rumors that 100 highly paid partners at Goldman Sachs are going to be getting the axe.  It is said that Goldman will save 2 billion dollars with such a move.

We haven’t even reached the next great financial crisis and the pink slips are already flying on Wall Street.  Meredith Whitney says that she has never seen anything quite like this….

“The industry is as bad as I’ve seen it. So it’s certainly not a great time to be on Wall Street.”

But of course Wall Street is not going to get much sympathy from the rest of America.  The truth is that things have been far rougher for most of the rest of us than things have been for them.

When the last crisis hit, they got trillions of dollars in bailout money and we got nothing.

So most people are not really in a mood to shed any tears for Wall Street.

But of course the Federal Reserve is definitely hoping to help their friends on Wall Street out by printing lots of money.

You never know, by the time this is all over we may see QE4, QE5, QE Reloaded, QE With A Vengeance and QE The Return Of The Bernanke.

Meanwhile, Europe is gearing up to print money like crazy too.

A couple months ago, European Central Bank President  Mario Draghi made the following pledge….

“Within our mandate, the European Central Bank is ready to do whatever it takes to preserve the euro, and believe me, it will be enough.”

And of course the Bank of Japan has joined the money printing party too.  The following is from a recent article by David Kotok….

The recently announced additional program by the BOJ includes a fifty-percent allocation to the purchase of ten-year Japanese government bonds. The other fifty percent will buy shorter-term government securities. Thus, the BOJ is applying half of its additional QE stimulus to extracting long duration from the government bond market, denominated in Japanese yen.

All of the central banks seem to be getting on the QE bandwagon.

But will this fix anything?

Unfortunately it will not, at least according to Paul Volcker….

“Another round of QE is understandable – but it will fail to fix the problem. There is so much liquidity in the market that adding more is not going to change the economy.”

Sadly, most Americans have a ton of faith in the people running our system, but the truth is that they really do not know what they are doing.  Just check out what Dallas Fed President Richard Fisher said the other day….

“The truth, however, is that nobody on the committee, nor on our staffs at the Board of Governors and the 12 Banks, really knows what is holding back the economy. Nobody really knows what will work to get the economy back on course. And nobody – in fact, no central bank anywhere on the planet – has the experience of successfully navigating a return home from the place in which we now find ourselves. No central bank – not, at least, the Federal Reserve – has ever been on this cruise before.”

Can you imagine the head coach of a football team coming in at halftime and telling his players the following….

“Nobody on the coaching stuff really has any idea what will work.”

That sure would not inspire a lot of confidence, would it?

Perhaps the Fed should be open to some input from the rest of us.

Actually, back on September 14th the Federal Reserve Bank of San Francisco posted a poll on Facebook that asked the following question….

What effect do you think QE3 will have on the U.S. economy?

The following are the 5 answers that got the most votes….

-“Long term, disastrous”


-“Thanks for $5 gas”

-“I can’t believe you think this will work!”

-“Fire Bernanke”

So what do you think about the quantitative easing that the Federal Reserve is doing?

Please feel free to post a comment with your thoughts below….

  • Mondobeyondo

    My goodness, how much more money do they need?!!

    “To infinity, and beyond!”

    Buzz Lightyear for President 2016…

    • Michael



    • K

      Mondo, they do not need anymore. How much do they want, that much does not even exist. There is no difference between them, and a drug addict. They always need more, and even more is never enough. They are sick creatures, and should be pitied. Hard to do that, when they are taking everyone down with them.

      • Mondobeyondo

        The more they keep “printing” money, the more they cut their own throats. They don’t realize that, of course. Or maybe they do, but they are so blinded by their own greed that they could care less. This is very likely the case.

        They are literally killing the geese laying the golden eggs. The next to die will be themselves. And then what? That performance by the gentleman on “America’s Got Talent” comes to mind. “Whatcha gonna do? Whatcha gonna do?”

        (“Them” and “they” = the powers that be, Illuminati, the elite, etc.)

  • tiwimon

    Looks like QE4 is already being set up as an expansion of QE3

    Fed’s Williams:QE3 asset buying may be expanded

  • DaytoDay

    There used to be a thing called JOBS!!!

    This is how this works, “I owe Fred $5, Fred demands payment, but I don’t have it, so Fred loans me another $5, and now I owe him $10”

    Get it???

    What we need are JOBS… And what I mean by a J.O.B, is something that produces (Makes), a physical commodity, with a reasonable return (I.E, manufacturing, farming, medicine)

    Don’t get me wrong, we need a little bit of everything, but come on… 100 million people working at McD’s… Imagine if they were in a Ford plant…

    Personally, If farming wasn’t already destroyed by Monsanto and “BIG AGRA” I would advocate farming, as the best “Job”.

    -Physical Exercise
    -Personal Freedom
    -Good Lifestyle
    -Money (Because we need it)

    But just wait until the “Food cards” are shut off, credit card becomes worthless, gas $5? Try $15 (Syriana), and everyone will be singing a different tune… But what will be truly amazing is, people will say “I never saw it coming, how did this happen”

    Just remember, we reap what we sow… You don’t care if Wal-Mart is the future, then don’t complain living in your car your whole life…

    It’s time to take action!

    • Mondobeyondo

      Jobs? Oh wow! Jobs! I remember those!!

  • GSOB

    Kiss it all goodbye
    You are not ready to live til you are ready to die.

    Preach the gospel and prep
    Watch it crumble before your eyes

    Wipe the tears from your eyes
    Everyone lies.
    Everyone dies.

    Christ is king and will return in glory.

    • chunkeroo

      One things about anticipating The Crash….

      I am realizing cushy modern American/Vanity Fair as we know it is coming to an end – likely for my lifetime.

      My dreams and aspirations will not be valid after the Crash. I realize how “wordly” I have become – self-absorbed, planning for a future of pleasure and fun. We can now look forward to survival.

      Now I am starting to be more circumspect and reeval priorities for example spiritually I have been negligent towards God. And the things that are most important like family and relationships

      So if anything good at all can be said to come out of this is maybe we will live our lives with more gravitas.

  • McKinley Morganfield

    QEx10E6 will not ‘fix’ anything and is not intended to ‘fix’ anything. All the central bankers want to do is kick the can down the road and keep the big banksters and sovereign debtors afloat through the next election cycle.

  • The Claymobile.

    I have 3 words to describe Ben, Wall Street, and our political leaders in Washington: college educated idiots! Here is the Claymobile Plan to get America back to work. #1 Eliminate the present corporate tax code and go to a flat rate tax of 15% with no deductions. Then say to the companies, if you will pay your employees a livable wage we will reduce the rate to 10%. Then go one step further and say to the companies, if you will provide your employees with a good benefits package we will reduce the rate down to 5%. #2 eliminate 90% of the rules and regulations that companies have to deal with. #3 Slap heavy tariffs on trading partners who have barriers erected against our goods . #4 Start a nationwide campaign to encourage consumers to buy American made products and services . Can you imagine the tremendous economic activity this plan would have on the American economy?!

  • AZ John

    Aint gonna work!

  • badbrian from grass valley

    this is not going to end well at all.

  • Bone Idle

    Quantitative easing should be renamed “Weimar easing”

  • Snake Pliskin

    Tear it all down build it up again Empire… Can you hear it coming Empire

  • Once you start printing, you can’t stop. We are on a one way street, no stops authorized until this thing implodes.

    There simply are no viable solutions anymore. The only unknowns are “when” it will all happen, and to what extent the “pain” will be felt.

    Happy Prepping


  • Nolan

    Michael, do you really believe that anything is going to happen? I’d never guess by the general mood where I live. How do we know in ten years we won’t be talking about the New Roaring Twenties?

  • Jaguar34

    Clinging to my food, gold, silver, guns and bullets. It can only gets worse from here 🙁

  • Marco

    Nobody cares because they are waiting in line for the new iPhone…

    • Mondobeyondo

      I remember those days! Right now, I stand in line for jobs so I can be able to afford an iPhone. Verizon terminated my account after 3 months of non-payment. Gee, I wonder why?! My phone was just a little poopie Nokia!

  • 007

    Bernanke’s QE3 reminds me of the mutant viral mass reproducing agent Mr. Smith in the movie Matrix Revolution. Mr. smith kept replicating and growing in number exponentially in the movie. He thought if he could just create enough Mr. smiths it would all be good. Instead it so perverted reality that it ultimately crashed the entire system.

    QE3 is so perverting our economy with false bubbles and trickle down government and big banks our economy will never recover.

  • 007

    A sunami wave of inflation is heading our way and there is no stopping it. The missles have been launched and there is no button to recall them. We are already seeing the first appearances of it in our gas and food prices.

    The Fed has no “exit” plan. They joke about it. They try and tell us with a straight face they will sell all of their treasury notes and toxic mortgages when the inflation wave hits. However, they know no one in their right mind will buy them. That is why the DHS is buying billions of rounds of ammunition and riot gear. They are preparing for massive civil unrest when inflation becomes unbearable to the public.

    Bernanke has already started making Armagedon like prophesies if Congress does not take additional extraordinary actions. When it all falls apart, Bernanke will be saying “I did everything I could, I warned you this would happen”.

    And that is how this will end. The only question is how soon it will hit. The experts are predicting the first waves will hit late next year. Ain’t life grand.

  • Eisenkreutz

    If you are not prepared for hyperinflation YOU WILL DIE. The fed goin HAM.

  • Roger Smith

    Did you hear the news?….They just found the dollar, face down in a bathtub in Paris…..

  • Let us wait for the first trillionaire!

  • Michael an economics major (friend of mine) at TCU told me that Bernake and company just simply type in the amount of credit on a computer terminal somewhere, and that makes all the banks flush with all the cash they need. It all gets transferred electronically. Do you know if this is how it really happens?

    • Michael

      Well, when I say “print money” I don’t mean that they actually go out and print the dollars bills. Most things are done electronically these days.


    • GSOB

      Craig and Michael….

      Its a mixture of both paper and cyber currency, backed by the same.

  • Joe

    I’ve often said concerning “free trade” agreements that the only way to compete with slave labor is to become slaves. Maybe that’s Bernanke’s strategy- devalue the currency as fast as he can until American labor is as cheap as Asian labor.

  • Robert

    Thank you Ben Bernanke for the guarantee of higher prices for gold and silver as the physical holders are jumping for joy.

    By all means throw in as many QE’s as you can till our “fiat” paper greenback reaches zero ($0.00).

    I think Mr. Bernanke is going to make 1923 Weimar, Germany look like Disney Land !!!

    And many thanks to JP Morgan for smashing down silver and gold so the physical holders can continue to buy at sale prices.
    Backing up the truck wouldn’t be a bad idea.

    Jamie Diamond and Blyth Masters will go down in the history books as the friends of the precious metals holders.

    I’m afraid the paper “fiat” money experment
    is drawing to a close.

    I never thought I would see so much history made in my lifetime !!!

  • OldPhart OutIn TheDesert

    Back when the talk was starting about the first bailout, TARP (was it?) in 2008, a suggestion was made on a chat site that was considered ridiculous.

    The train of thought was that there were about 200 million adults in the US. Have the FED grant $100,000 to every adult with the stipulation that they must buy a new car (any model, any dealer), and pay down their home mortgage by a minimum of $25k.

    By my calculations that would have been a total of $20 trillion invested directly to Americans and would have solved the car company crisis and kept many in their homes. The balance would have been an immediate direct stimulous to the economy and the funds were spent or invested.

    $20 trillion seemed such a fantastical number in 2008…we didn’t know that the FED had already generated $16 trillion and gave it to world banks. Nor did we know of the subsequent QEx’s. $20 trillion would be a bargain today.

    Instead, however, bankers and politicians have benefitted from the FED’s imperial largess.

  • Michael

    don’t forget Japan is at QE8….. and it doesn’t work !!!

  • k

    You know what scares me the most? there is no force on earth that can stop the federal reserve from making such mistakes.

  • Rhynn

    Love how you put Bernake’s grill right at the bottom of the article Mike.

    For that personal touch. LULZ!

  • A047

    Better get your Gold and Silver before it’s too late. The FED and the current Prez are going to take all your Dollars. What a shame.

  • Bill

    The real problem was pointed out by Mr. Fisher in stating “nobody knows what is holding back the economy”. Well Mr Fisher the real problem is that “nobody” is telling the TRUTH.

    For instance, the real unemployment rate is way above 8%, the majority of America does not support Obamma, Romney has an ave 8% lead over Obamma, Iran is a target because of oil and currency not nukes and perhaps most important the dumb sheeple do realize the true 200 plus TRILLION DOLLAR DEBT WE AMERICANS ARE RESPONSIBLE FOR.

    Thus we TRULY are DOOMED.

    • Bill

      It’s about two hours after my above comment and I just looked at the CNBC headlines. Consumer Confidence is the best it’s been in 7 months. The sheeple on the side streets don’t beleive this crap but the “brains on Wall Street are driving the market up on this great news.

      Just one more: CNBC’s new poll TODAY says economy worse but Obamma favored. Think about that, confidence up, economy worse. Obama favored but an unskewed summary of major polls shows Romney up 8% on average.

      With confusion like this how can we not be doomed?

      • GSOB

        Great point Bill

        Obviously oblivious optimisim

  • chiller

    “The truth, however, is that nobody on the committee, nor on our staffs at the Board of Governors and the 12 Banks, really knows what is holding back the economy.”
    It’s quite simple really. America’s middle class is (was) the engine driving world economic growth. When you take jobs from the worlds biggest economy, which is 70% driven by consumer consumption, they can no longer consume. So what happens when the largest economy on the planet stops consuming? We’re seeing it now. Blame can be squarely placed on corporate and financial greed and their political puppets. Funny thing about greed. It’s one of the only things a human being can never seem to get enough of that doesn’t kill him from overdose. It will, however, make one quite insane.

  • Steve

    Since the Fed Rate is going to be near zero until 2015 it would have been nice to see comments about the effects this will have on Social Security Payments as the Baby Boomers are now entering retirement and the younger workers (not enough of them) will most likely see there SS Tax go up to cover this.

    Surprised among the top 5 answers there wasn’t one about SS. Guess most don’t know that SS can only invest in Gov’t Bonds and they are basically worthless. Perhaps an article on why the American Public are so, so clueless as to how SS really works and what has happened since 1964 when the Democrats moved it from a Trust Fund into the General Fund.

  • grandpa

    Guess this end of the spectrum was the only one hiring… everyone needs to do every thing they can for themselves even education. trade it.

  • Donald Wilson

    This will literally screw the little guy on main street. Good luck.

  • TX4Life

    “Sadly, most Americans have a ton of faith in the people running our system, but the truth is that they really do not know what they are doing.”

    Michael, this sums up the entire situation in our country right now. Most of our countrymen just refuse to believe that the people in charge can’t fix our problems. Everything our “management” does is a Hail Mary.

  • primrose

    A classic example of insanity. Do the same thing over and over (ad nauseam) expecting a different outcome.

  • SmallerGovNow

    Got God, guns, gold, ammo, food???

  • Dallas Fed Pres. Richard Fisher’s comment that, “Nobody really knows what will get the economy back on course…” is truly scary. Aren’t these guys supposed to be the best and the brightest in their field? If the captains of the economy don’t know what they are doing, get ready for some very bad changes ahead.

  • Kevin2

    All of this is like a reflection of the modern world where the distinction between reality and fantasy is blurred through technology. It’s the financial version of a video game.

  • This is really getting to be absurd!!!

  • RICH99

    This article makes no sense , they just started QE to infinity….endless printing so how can you possibly have QE 4 !! Makes no sense

  • Martman

    You guys dont need an election you need a revolution.

  • markthetruth

    There is no real growth left, real growth is based on parts of earth ,natural resources(food,water,land) unfortunately we have and eventually will suck every bit of oil out of the earth , destroy our water and food buy using them for the wrong reasons, and we will over populate the earth. The recent economic growth has envoled creating things an stuff that are not necessities to live. But to substitute machines and gadgets to do the things we are supposed to do , so in the end you have to work more to have these gadgets and in the end it’s a negative net.

    To me God created Heaven and Earth for us not space and other planets. He also created Men and Women and they where created different for a reason. I don’t need to go any further, you can figure it out for yourself. But now each one wants to do what the other was meant to do and that can’t fiscally or for naturing reasons work. So we have destroyed what God has meant for us to Live a family. Now our society,morals and ethics are destroyed.

    the end.

  • Jodi

    This is nothing more than stealing from the poor and middle class to fill the pockets of the rich. Quantitive Easing is just a fancy term for stealing.

  • Selaretus

    Our difficulty lies not so much in the extensive printing of more and more toilet paper money, allthough it is a very serious side effect. Bankers, politicians, business men, industrialists……most everyone believes there is SOMETHING we can do, SOMETHING in our accounting bag of alchemy tricks to ‘spark growth’, as Pres. Oboob has said. He says it, Misfit Mitt says it. But the reality is very different from the wishful thinking we hear. The reality is that there will be no, can be no ‘recovery’. Period. The reality is that we are in a phase of permanent and deeply compressive contraction; growth is just done. We are out of cheap energy and resources. The law of entrophy has settled in like a long, cold dark winter. Our difficulty is that our ‘leaders’ cannot and will not accept this reality. Therefore they continue to try tricks that worked during a run of the mill recession or depression. This beast we face is very very different than either of those economic descriptions, allthough it shares SOME of the same traits. Nor will they change or deal with reality until it all falls down around them.

  • curtis ferguson

    QE4 already. Be better to just put it all on red-7

  • FRNs DO NOT qualify as “lawful money of the United States” consequently FRNs are “evidence of debt” which begs the question.

    How can you be free of debt, when All you have is debt?

    Welcome to “debtors prison” which is against the law.

    Further this controlled fraud, vitiates the most solemn contracts, document & judgments.

    Corporations that operate outside the rule of law, contrary to the intent of their corporate charters are “ultra vires”
    & MUST be closed.

    Note the controlled fraud is orchestrated by the Board of Directors, the CEO, CFO which are liable for promoting “Crimes Against Humanity & Peace”.

    Money has substance, is rare –
    FRNs DO NOT.

    Kat Up to Peace Out!

  • Alvin

    So just what is the end game. I have read articles that banks are gushing with cash but not lending. So why QE 3 ? Then I read a story this morning that Fed will buy up $ 40 Billion A MONTH in mortgage back securities. So what gives here ?
    Is the 1% creating money out of thin air and just buying up assets ? Is the end game for the 1% ( the Fed & Government ) to own everything ?

  • none

    GOOD NEWS: Micheal

    There might not be a shortage of corn in the U.S. after all.
    The E.U. is considering a ban on G.M. corn after it was shown to cause cancer in mice.

  • Jerry

    Great article, Michael. QE Insanity – get their favorite money changer/printer enabler Obama re-eleced, utterly destroy the middle class, and when the inevitible collapse comes take the money and run away to enjoy the high life in their enclaves while America dies. Amazing how quickly a great country can fall. Think Obama cares? Yeah right.

  • Ameen

    I can’t think of anything better to say than (apologies for the lack of imagination….):

    -“Long term, disastrous”


    -“Thanks for $5 gas”

    -“I can’t believe you think this will work!”

    -“Fire Bernanke”

  • Rikki

    Will I have to move into my moms basement by Christmas?

    I dont know how many more things I have to sell on ebay and CL, before i have to sell all the really valuable stuff like signed records from Frank Zappa and the band.

    Or do i throw in the towel and sell my dj equipment and never dj again?

    All because that $40 billion a month is too small and i cant even get a $500 credit increase to get my engine light fixed to pass emissions…..such terrible choices to make.

  • Big Dick


  • Robert (qslv)

    The race to the bottom – Japan and Europe trying to save their economies by responding to Bernackie’s QE program by devaluing their own currencies.
    In theory, it will help their exports and trade balance and prevent default that has already really happened in many Euro countries. This will end badly – runaway hyperinflation.

  • My retort to Dr. Fisher “That no one knows why….”, well it is that we have a consumer economy and we do not make anything of consequence except war materials.

    What may be a saving grace is the collasp of the “petro dollar” and the formulation of an international currency , perhaps based on gold since wse are all running out of oil.

    In the mean time if we flood the world with USA fiats based on a oil value that creates it’s own economic war with major powers who want to be.

    It is interesting that the central bank is buying up debt- not for your interest but what they will own in defaults.

    All this mess will take decades to iron out. In the mean time some faction of extreamism will attempt to start a war for their own ideology and probably be successful since everyone is becoming brainwashed into anti-Christian thinking in the other 1/2 of the world.

    The future will become bleak, so stock up – not just on a few cans of beans but in skills, sell out and move to the sticks. Grow food and raise stock.

    With best wishes, OT

  • Riggers

    Just prepare for the worst, hope for the best. Got no other suggestions for ya…..

  • T-Bone

    Just let the economy crash along with all the bankrupted banks stop the bailouts!

  • I am holding out for QE19
    That’s where Unkle Ben throws Quadrillions of dollars from hilicopters to waiting people below, over every major city in the United States, Canada and Mexico too!
    Keep in mind a gallon of gas will cost you about 19 Billion Dollars or a loaf of bread will cost you 6 Billion Dollars, but hey who cares it’s FREE money, right???
    I bet he will change his mind and give it to bail out the gangsters I mean Banksters AGAIN!!!


    The entitled will never get enough of other people’s money…Look around, it’s everywhere…

  • gman0528

    This is the trouble you get into when you have people like Chairman Ben Bernanke running the reserve and this guy has tobe an idiot with a college degree there are so many of them now days, but you can not expect to be 16 trillion dollars in the hole and expect a qe3 to help , when you mass print money like Chairman Ben Bernanke and the white house has ordered at some point you will get to a economy with super inflation and this is even worse, but I honestly think that is what they are trying to do to the economy implode it start martial law and once again hitler has risen from the dead and this time he is the president of the united states, and if the people reading this does not know that we have chinese military bases in mexico and russian troops in california and colorado you might want to start doing some homework…

  • JasonGSB

    It is not about the quantity of money right now but the velocity of money. The FED is paying banks to park the cash as excess reserves and they are getting a profitable spread doing so. If you want the money to actually move through the economy, lower the rate paid on excess reserves or better yet, give the money directly to consumers and small business owners, not banksters.

  • erheault

    The answer is simple start printing million dollar bills and send them out in bales to the public to use, It worked in Germany in the 1920s of course they wound up with hitler but they paid off the WW1 bills with them and then changed into the deuche mark,

  • Print more money or have the United States default on its debt. Take your pick !!

    • Selaretus

      US has already defaulted on it’s debt!!!! All this printing of toilet paper Benny Bucks only masks it temporarily.

  • Paul M

    The story below is applicable to the U.S.

    It’s a slow day in a little Scottish town. The sun is beating down,and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit. On this particular day a rich tourist from down south is driving through town. He stops at the motel and lays a £50 note on the desk saying he wants to inspect the rooms upstairs in order to pick one to spend the night.

    As soon as the man walks upstairs, the owner grabs the note and runs next door to pay his debt to the butcher.

    The butcher takes the £50 and runs down the street to repay his debt to the pig farmer.

    The pig farmer takes the £50 and heads off to pay his bill at the supplier of feed and fuel.

    The guy at the Farmer’s Co-op takes the £50 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her “services” on credit.

    The hooker rushes to the hotel and pays off her room bill with the hotel owner.

    The hotel proprietor then places the £50 back on the counter so the rich traveller will not suspect anything.

    At that moment the traveller comes down the stairs, picks up the £50 note, states that the rooms are not satisfactory, pockets the money, and leaves town.

    No one produced anything. No one earned anything.

    However, the whole town is now out of debt and now looks to the future with a lot more optimism.

    And that, ladies and gentlemen, is how the British Government is conducting business today..

    Makes you think doesn’t it?

    • DaytoDay

      Absolutely brilliant!

    • 007

      It only works if the motel owner steals money on the front end and gets away with it. The money never comes back to the thief in just the amount just in time to cover his embesslement. However that is the classic reasoning behind most embezzlement schemes.

      The end is always predetermined by the means.

    • Peter

      What you fail to mention is that every character in this story is also owed $50, so in reality they are not in debt but have a zero net worth. If I have 250k invested in my house and my assests also total the same, then using my assests to pay off my house still doesn’t make me any richer, my net worth would remain the same. We live in a world where millions of people depend on income that is generated from nothing more than interest on debt, so obviously paying it off holds no priority

  • David Hammond

    Michael, can you do an article on the tax increase that everyone will be paying staring Jan 1st, 2013? I work at a hospital, and I have had 1 raise in 5 years, and this tax hike of 3% is basically going to erase any progress I’ve made in the 5 years.

  • Michael Hemphill

    If the QE would let Americans refinance all OUR debt at 1% we would be rebooted and in much better financial shape and much more optimistic so we could return to our consumerism, build businesses and hire employees. My Jumbo home loan and biggest credit card payments would drop tremendously and we would all be optimistic again.

    If we are going to be held liable for the debt, shouldn’t we get some of the direct benefits instead of trickle-down failure?

  • Michael Hemphill

    QE Directly on Americans Debt is the path out. The banks will get stimulus from us directly instead of from the back door tricks were seeing now.

    • mike

      Are you kidding me? WHOSE way out?! The bankers that got into this mess need a way out?! Our way out is to get rid of the Federal Reserve and their fiat money system and to return to a constitutional form of money. They are STEALING from us by devaluing the dollar. You are either very poorly informed or you work for Freddie or Fannie or or Goldman or…

    • Helio

      And what do you think happens to the purchasing power of all those extra dollars everyone has?

  • Tom

    How can we truly expect great leadership when all America does is vote for the appeal and not the intelligent? It is sad how small descrepenies are focused heavily upon when extremely important events and situations are ignored. I fear that the American Empire is in its final down fall. Astute question is…how will America fall? Like the British or (gulp) like the Romans!!

  • Flesh

    Holy crap. I hope all you poor ish people are with me on
    This notion that. If you ain’t got nothin. You ain’t got nothin to lose.
    And if u are a money hounding freek, this is gonna suck way worse for you. Personally I’m about to move out tO the country were u can be poor and still get by. Also riots don’t happen in the woods. Good luck.
    I love all my fellow humans. Even all the tards at the fed and on wall street. Because it doesn’t matter how much money u funnel into ure pocket when it ain’t worth ***********.

  • TheRandyGuy

    Congress has bastardized the function of the Federal Reserve. Originally, it was to provide for a stable money supply. In order to deflect criticism from itself, Congress tasked the Fed with stimulating the economy. Unequipped and unprepared, it fails but Congress takes no blame. Nothing Bernanke or the Fed does can create demand. A lack of liquidity is not the problem: A lack of demand is.

  • Tim

    Gregory Mannarino provides some excellent commentary on this subject. This guy is really sharp. He knows how the game is played as he worked on Wall Street in the 1990s.

  • Rowell


    Social security and medicare.
    It’s time to face reality. In regards to social security and medicare, we’ve been robbed. For decades, every US worker has had money taken out of every paycheck to go towards social security and medicare. We were promised that, when we came to retirement age, the money that the government took and promised to grow would be there for us, to help us in our later years.

    That was a lie. Those funds have been pillaged for decades, propping up pork projects of congressmen and senators of both parties. If you are 50 years old or younger, odds are you won’t see any of those funds by the time you retire. It’s gone.

    Right now, social security eats up a vast portion of all the federal tax revenue collected. It’s simply unsustainable. We can cry and complain now, but that doesn’t change the reality that we’ve been lied to, we’ve been robbed and we’re simply not going to see the billions of dollars we invested into our future when we need it. Sure, they can promise that it will be there, but that doesn’t mean it will really be there.

    It’s time we grew up and saw this truth and started preparing for it.

    In the late 1990’s, the globalization of the United States was set into motion with NAFTA, a policy crafted by a democrat president and a republican congress. With that step, the US had opened up markets in dozens of countries, allowing products to flood the market. The downside to this, as we’ve seen, is the migration of US jobs overseas.

    Those jobs that were lost….they’re gone. They’re not coming back any time soon. The only way those jobs will return is if US workers entered the market to compete against workers overseas. That means lower wages on par with workers in China. That means longer hours, no benefits and less worker protections. Essentially, that means going back to the work environments of the early 1900’s.

    Today, only 24.6% of all US jobs are considered good jobs, jobs that pay at least $18.50 an hour, have employer-sponsored healthcare and an employer-sponsored retirement plan, such as a 401k. That number will continue to decline. Why will they continue to decline? Because there are still tax incentives, tax breaks and tariff waivers given to corporations that move and maintain operations overseas.

    Until we change our job policies, the US will continue to lose jobs and continue to have a weaker economy.

    Lowering taxes.
    Right now, taxes are the lowest they’ve been in about 60 years. Lowering taxes while funding nearly half of the federal budget with debt is lunacy. That’s the equivalent of paying half of your total household monthly expenses with a credit card, then telling your boss that you would like a pay cut. It is completely unsustainable.

    Lowering taxes may seem like a good idea to stimulate the economy, however, the people that would, by a vast majority, benefit from lower taxes are already paying no taxes. 47% of Americans pay no taxes, most through no fault of their own (see Jobs above). Lowering taxes will only serve to increase the rate at which this nation goes into debt.

    The US debt is just passed $16 trillion. That is an obscene amount of money to be in debt with. However, trying to cut the debt, while still in the grips of high unemployment and, let’s face it, a recession, is insanity. Look at Greece, or Spain. They’re in debt, clearly not as much as the US, but they are in deep debt. Part of their plan was to fire thousands of government employees, raise taxes and to cut spending…by a lot.

    The result: economic depression, unemployment rates as high as 25%, thousands of businesses closing their doors, mass exodus from cities back to the country, increase in crime and suicide rates, and daily protests and riots. When government stimulus is holding together the fabric of society, providing food and funds for shelter and heat to citizens that have fallen on hard times, the worst thing you can do is to cut stimulus.

    In essence, keep the stimulus going, even if you incur debt. When you recover, and are able to, then pay down the debt.

    A large contributor to the 2007-08 recession was the de-regulation of banks. Through derivatives and other creative manipulations, along with rampant hedges, we’ve seen the near collapse of the US banking industry. Today, there is over $1 quadrillion tied up in the ether of derivatives…financial creations that not even banking professionals even understand. Without regulation, banks have gambled away trillions of dollars, tying these funds up in a twisted jumble of numbers that no one fully understands.

    Since 2008, the too-big-to-fail banks have only gotten larger. The laws passed after the recession to rein in banks have failed. We are living in a time where banks are growing larger and expanding their derivative portfolios. The next time there is a bubble burst, there will be no rescuing the banks, and that will destroy the US financial sector, the US economy, us stocks and bonds.

    • Kevin2


      “In essence, keep the stimulus going, even if you incur debt. When you recover, and are able to, then pay down the debt.”

      Why do you think we’re going to recover? This is not a mere downward business cycle but rather a realignment of global economic power. The debt is never “paid down” but constantly paid off with a devaluing of the currency as more money (regardless of source or destination) is produced without a like increase in productivity.

      Sooner or later regardless if the stimulus is abandoned and we receive a drastic and dramatic cut in standard of living or retain the stimulus and reduce our purchasing power with devalued currency we’re ending up in the same exact place. Our collective wealth creation is far less than our collective current expenses and far below our future obligations. In the end you either have money or the money you do have is very insufficient.

      When Glass-Stegal was removed the financial fox was put in control of the chicken coup. Those that have are stealing (not actually stealing because they removed the laws that defined theft) while there still is something to “steal” and those without are attempting to hang on but backsliding daily.

      I believe the rapid globalist plans have hit a snag of such magnitude that it has spun out of control of the very people that created the mess to begin with.

      • Kevin2


        “In the end you either have NO money or the money you do have is very insufficient.”

    • Old Man

      You are of course mostly right on these matters. But it is way too late to recognize and complain about it. The path of fast-track destruction was taken a dozen years ago. But everybody cheered at the time – confident America the superpower is Exceptional and can defy basic laws of economics and physics.

      Social security and medicare – The system is going for a full bankruptcy not because it is designed to fail. But because the politicians stole from it. Why did they do it. Because their voters wanted it so.

      Jobs – NAFTA was passed in 1994, not the late 90’s. And you’re wrong on just about all of it. (Check It’s a trilateral deal between US, Canada & Mexico, where trade on specified goods (but not services or labor) can flow without tariff equally among them. Some US jobs were lost to US companies in Mexico, while millions of jobs were gained from US-Canada trade. But compared to China, NAFTA is a little mouse. It is estimated that more than 50 million manufacturing jobs were loss to China but there is NO FREE TRADE DEAL between US and China. Why is that so? Because it is American businesses who wanted it that way – they are the ones who closed up shops and opened up the same shops in China. Something about maximizing profits. Even today, Americans are buying zillions of China made stuff like no tomorrow. 5 million made-in-China iPhone 5 in mere 5 days. Any and all complain about this thing is pure unadulterated hypocrisy. Yes, I am referring to you too.

      Deregulation – US deregulated not only banks, but all financial institutions and large corporations who operate globally. Far exceed what other G8 countries have done. Why? Politicians, especially the Republicans, knew that will maximize corporate profits and enrich their electability. And they are right. But there is a fine line between empowering the private sector, and let them run the show to the point of corruption and excess. The politicians were blinded by their own ideology and hubris. The result is a fiscal black hole, an economic malaise, an industrial and societal devastation so deep and complicated, that nobody knows how to dig out.

  • John Jackson

    Wow, I am speechless! This is going to turn out really ugly for those who do not secure their assets outside of the paper system. However, it could be the opportunity of a lifetime for those who know where to secure their assets:

  • GA

    It is apparent that whenever new easing is initiated the subsequent hopium gets shorter and shorter. This is getting close to the end as we get closer and closer to 3rd world status. Prepare expeditiously!

  • Pam

    Here is what I want to know. Why now? Economic indicators aren’t any worse than they have been for months, yet we have three central banks jumping on the printing bandwagon at essentially the same time. Sounds pretty coordinated to me. I just cannot suppress the feeling that something very bad was about to happen that made them bring out the big guns at this time. And I feel that TPTB do understand that this won’t help either Wall St or Main St. So why and why now? Speculation, regardless of how zany, will be much appreciated. Lets brainstorm this one, huh?

  • Old Man

    It is not easy to draw a graph here but let me try:

    | x
    US Federal | x
    Reserve | x
    Credibility | x
    & Usefulness | x
    | x
    | x
    | QE1 QE2 QE3 QE4 QED (end of Fed)
    1/Fed. Balance Sheet (T$)

  • conalmc

    When does this ever END. Invest outside fiat money people.

  • Mick

    “QE3 will likely be insufficient to significantly boost equity markets and we wouldn’t be at all surprised to see the Fed dramatically augment this program (i.e., QE4) before year-end, particularly if economic and corporate news continue to deteriorate as they have over the past few weeks.”

    “QE3 will likely be insufficient to *cover our Q3 derivatives losses* and we wouldn’t be at all surprised to see the Fed dramatically augment this program (i.e., QE4) before year-end, particularily if *the market loses steam and Obama’s approval rating goes with it*.”


  • CatNap

    They know exactly what they are doing.

    It all makes perfect sense when you consider it from the point of view of creating a demand for the new world currency.

    Crash the currencies and the people will swallow what you will them to…and with a “Thank you, Sirs!”

  • Washington

    “‘Emergencies’ have always been the pretext on which the safeguards of individual liberty have been eroded.” Friedrich August von Hayek

  • chow

    Like you said, there’s no inflation or hyperinflation until the printed fiat goes out in circulation; then, the velocity of money go to hyper drive which will cause hyperinflation. As long as they keep the money in the bank reserve ledger it will have no effect to our private spending or employment. All it does is it affects the government spending because the money in the bank reserve is used to buy more treasury bonds increasing the deficit; thus, the national debt.

  • The NEW IRS form.

    LINE 1
    Enter Amount you have left (took home) $_________
    Send it to Goldman Sachs, NY, NY 10011

    QE47 IRS cuts out the middle man.
    Saves time and trouble…

  • Reality is approaching at the speed of light. Be smart, be safe, and above all be prepared for runaway train we call our economic system.

  • Benny and the Helicopters

    Could we just give 100% of GDP to the banks?

  • Robert

    I don’t understand why the democrats want to raise taxes. Ben should implement “QE pay all the taxes”. Why not put the money in the hands of the people instead of the big banks.

    On a serious note, I think this will buy us time to shore up our personal balance sheets.

    Good luck to all.

  • Banks always complaining, they are like never-ending pocket, and there will be always someone who ill throw some coins in there but its ALWAYS not enough.

  • Max Goldberg

    The Tax price has been the same in the dollar

    terms for years. But it has dropped in gold three

    times in the past 5 years. Want to see what is the

    gold price at the moment? Please check my website:

  • A.S.

    Short term solution simple: let failing banks and business, no matter who, become bankrupt and without any ability to default on their debt. If simple people cannot default on school debt, then rich banks and business that are still making a profit and have many holdings, should liquidate everything and pay back everyone who they owe money to. So, with that said, I guess all the major banks in the U.S. should die, G-d willing. And it would be their just judgment by the hand of heaven: they “screwed” the American people, and now they got it back 10-fold.

  • Washington

    General Motors is becoming China Motors

  • Me

    Last night a little moron came dancin’ through the Fed
    Last night this little moron said he’d print ’till we were dead
    He said “Come on baby, I got a license to print
    And if it expires pray help from the mint”
    In the midnight hour – he cried “more more more”
    With a rebel yell – he cried “more more more”

  • Optimistic Pessimist

    The Great Credit Contraction: Take note of the picture.

    Something is wrong when the Derivatives market is 29 X World GDP.


  • Hipower

    Watch the documentary “Surviving Progress.”Sums up the the current situation rather neatly.

  • bruce

    I assume these mortgage securities will be more toxic assest. the banks will not sell their safest assests that is for sure. So how are these things valued sinch mark to market has been suspended. I suppose the fed will simply pass off 100% on what should be valued at 40%. Good for the bankers sux for the rest of us.

    Michael, how about ferreting out what value they are actually paying for these securities?

  • Really?

    No matter how much digital fiat the FED RESERVE puts into the banks it’s only going to decline the economic structure further.
    Instead of the trickle down effect hoped for it has been trickle down erosion. It seems that the theme is to keep and maintain the lifestyles of the select until they are all prepared for the change over, whatever that change may be?!
    Even the headquarters for the FED I.e. Your government are changing
    the structure of civil liberties and basic human rights to obtain more control and persuasion over the masses with 200 million on some kind of government tit, NDAA , Iran and Israel false flag so what if they have a nuclear program there are the navies of 29 countries in the Strait of Hormuz right now doing a mine sweeping exercise but it’s actually to keep Iran from closing it off because that’s where all the oil comes out of the Persain Gulf. Their is a much bigger picture here , if you can control the oil supplies you can print toilet paper and call it the worlds currency.just like 911 was more than likely a false flag to enact the Patriot Act that was supposed to end and it has not.then Iraq with their weapons of mass destruction lol. Saddam was a bad man but that’s not why we were there. He had been committing tyranny against his people for more than 30 years.
    The Feds can print all the digital fiat until the end of time but sooner or even sooner no one in the world is going to want U.S. Dollars, and that’s when the real mayhem will start here in the states.
    Martial law, reeducation camps , DHS with the purchase of 1.6 billion rounds of ammo….up to 6 bullets for every American now.
    Local police already being issued federal ID badges, military exercises in american neighborhoods.
    Their is something terrible looming just on the horizon I’m afraid.
    They are preparing for the storm with your money it is when they are confident in all their think tank scenarios that it will take place ,.
    How can John Corzine be caught red handed stealing 1.5 billion dollars and not be held accountable ,oh yeah…..that’s right he is big banker Goldman Sachs guy…….
    God bless to all my fellow humans of life,liberty and freedom!

  • Richard

    Go ahead print some more money; I’ll burn it to heat my home when I cant pay my heat bill. I bought some land and I’m learning to grow my own food. Hope the rest of you are ready to do the same…….

  • Washington

    Mitt Romney – ‘Corporations are People’ actually they hire people, and are not individuals. Unless you believe in Corporatism!

    Study finds many corporations pay tax rate of effectively zero By Bernie Becker – 06/01/11

  • “Bank of America recently announced that they will be laying off 16,000 workers” – they should lay off few fat directors instead of real money makers

  • abamanation

    prepare for civil unrest and war

  • Marc McGuire

    There are 316 Million People in the United States.
    Why can’t the Federal Government give to the
    American People each $1 million Tax Free Money.
    We could eliminate POVERTY, FOOD STAMPS,

Finca Bayano

Panama Relocation Tours



Facebook Twitter More...