QE3 - Paper worthless, real assets soaring

Well there you have it folks. Money is money, and paper is paper.

Check out the front running for the last three months on the following assets, anticipating todays QE3 action.

http://www.marketwatch.com/investing/future/gold

http://www.marketwatch.com/investing/future/crude oil - electronic

http://www.marketwatch.com/investing/future/SILVER

You guys can stick with your paper investments. Have fun with that!

http://www.zerohedge.com/news/one-problem-qe-?

http://www.zerohedge.com/news/bernanke-unleashes-path-new-all-time-highs-precious-metals

 

Obama is a piece of trash.

 

There goes the dollar.

Get your gold, get your food supplies, get your guns and ammo, and buy real estate.

 

My new play. Buy gold with my supposed house payment.

Sounds good!

 

What kinda retard thinks 6 dollar gas is gonna help the economy?

 

Well Bernanke announced stimulus, what a loser, right before the election. Makes no sense, lost money

 

I shoulda bought some gold yesterday. I thought about it....

 

Exciting!

 

Funny how that works. Guess China has a leg up, they've been making HUGE gold purchase for over a year now. Imagine that?

But my question is, if the Obama recovery is working as he says, why would we need another FED dump? Will there ever come a day when Obama's brilliantly conceived recovery will not require welfare from the Fed?

 

Its just another way the administration sticks it to the rich, when their millions of dollars are reduced to worthless paper, they will become annoyed and stop investing and creating jobs.

Then we're all in the dumps.

 

The printing of money makes each existing dollar less valuable. "The middle class" really everyone must by law work for the dollar which is decreasing in value due to the printing of extra dollars. Democrats destroy the "middle class" as they make them work for dollars with decreased buying power. No doubt the most victimized in this scheme will vote Democrat.

 

When did the Fed become the administration?

 

What does Obama have to do with the Fed?

If you are going to inject baseless, unsupported rants to demonstrate your anti-Obama partisanship to the maybe one clueless person on this board who isn't already aware of it, at least do it in threads that have something to do with Obama.

 

agreed, those of us who are smart, know that ben bernanke and the federal reserve are in cahoots with the President and his administration.

So the middle class loses their net worth due to printing money, and they vote for democrats, who promise to redistribute wealth from the rich to them.

Its all a big scheme by this administration unfortunately, to what ends I don't know really.

 

Have you been losing a little bit of Obama love, lately? The multiple personalities have really been reflected in your posts as of late.

 

"Bernanke-

One of the main concerns that firms have is there's not enough demand. There are not enough people coming and demanding their products. And if people feel that their financial situation is better because their 401(k) looks better or for whatever reason -- their house is worth more -- they're more willing to go out and spend, and that's going to provide the demand that firms need in order to be willing to hire and to invest."

Have you ever thought Ben, maybe, just maybe, people aren't going to act like you think they should? Are you a licensed psychologist?

 

From the guy who told us earlier this year we'd see 10-20% declines in stock markets and a -2 to -3% recession by July.

Gold had a good day, but is down 4% over the past year compared to the Dow up 22%. Are you making any predictions going forward, or have you learned a lesson?

 

Yep.

Hopefully this will be the last quantitive easing since it's Obama's last re-election campaign. He has no reason to pump fake money into the economy to look good going into an election since it's his last term.

 

Overestimated, yes (lost 9%). Job hiring has slowed considerably, gas/oil/gold are up, as predicted. I SPECIFICALLY said many times stocks will rally with fed or other central bank easing.

Was I wrong? No. Just overestimated. Vector is still correct.

 

Hey what's up man.

Hey look. QE3.

Sup now b****?

 

I agree with you at least partly here. The main problem with QE is that you are exchanging assets for money that goes to banks, businesses and wealthy individuals. These groups are already sitting on trillions of dollars already, and I don't see how providing them more cash is going to have any major effect.

Seeing improved portfolios, whether in stocks or gold, may have some positive effect in making folks feel wealthier and thus more likely to spend, but it is an indirect methos as you point out.

What we really need is more direct stimulus by spending. But that is a fiscal issue that our Govt cannot achieve with partisan deadlock.

So this is about the best that can be done to give the economy a kick.

 

Sorry. We are not anywhere near a -2 to -3% recession like you hoped.

So are you predicting a run in gold? How much? Outperforming stocks?

 

So what? What were all mainstream economists predicting at the beginning of the year 3-4%? Give me a break. I wouldn't be surprised if we are around 0% right now.

Its not hope, its preparedness.

And yes gold/silver/etc will outperform for a while. No dates because of the complete unknown regarding the fiscal cliff.

 

If you had tons money sitting on the sidelines, what would you do with it? Diversify yes? (ie, stock, commodities, gold, etc)

QE helps no one and crushes everyone. End of story.

 

QE does not benefit the rich, they spend a lot of money advertising to the public, that big banks saturating the economy with cheap cash does to their bottom line.

What bond purchasing assets does, is give banks who get all this cheap money in their vaults, the opportunity to lend more to the middle class for buying homes, and starting businesses, while making the net worth of the wealthy, lose value when compared to the value of currencies around the world.

Right now wealthy Europeans are richer than wealthy Americans, because the USD took a dive.