will there be a QE 3 ?

So what do you think?

 

This is far distant thinking.

Firstly QE2 has to expire, followed by Charles 3 who doesn't have to take that name and could call himself George 7.

On his demise and the accession of Willie, who would have to produce a female first born, QE3 is a possibility.

Or Cunard could build one right now!

 

So creative, I like it BV.

 

I say without QE 3 the economy will stall and even collapse before the end of this year and so I doubt Bernacke will allow this so I think QE 3 is already a done deal.

 

QE3 puts too much of a burden on the Fed. QEs are also success-depndent, and it's unlikely that further QE could help the economy.

It's more of a banking problem at this point.

 

Using that money to buy all of the underwater mortgages in the country would have a bigger impact, though I don't necessarily favor that.

Instead, QEx just blows the equities bubble bigger and bigger.

 

I dissagree......governments would rather kick the can to a future date and let some other politician deal with the problem. QE wont solve the problem, in fact it will make it worse as it makes all commodities more expensive......but without QE another spectacular collapse will occur even worse than in 2008.

Housing is falling now...can you imagine the colapse in housing without QE? And if housing collapses what happens to all those underwater mortgages on the books of many banks? Do you smell another wave of bank failures? Without the fed in the market then there will be no demand for treasuries so interest rates will rise.......this also means higher debt service costs for the federal government......personally I dont see how Bernacke can avoid QE 3 at this point...he chose this path and now he has no choice!

 

But the Fed does not (to that extreme). QE3 won't help anything, the market has already proven saturated in that sense— also banking problems are seeing newly liquidated funds being used for purposes other than increasing monetary velocity.

There is no possible exit from the economic woes that face America— nothing we know of will change anything in the near future and Americans better be ready to worsen their lifestyles.

 

I have always said since joining this forum back in september that Bernacke has one of two choices......do nothing and let the system purge and have a spectacular collapse worse than in 2008....or keep the QE going....... QE 3 then QE 4 and so on until in a couple of years there is a currency crisis......that will be the end game for america!

 

look at the bright side....people that bought gold are making a fortune

 

It's impossible, there will be no effect. It's surely not going to boost the markets in any meaningful way.

Austerity will crash the economy, increased taxes will, increased monetary policy will.

China's played a great game, to be honest.

 

They're still poor.

 

But they've cornered America in terms of economic flexibility.

Inflation will slaughter America; Chinese over-buying of crude will see prices on the global market stay relatively high.

 

I think china is playing a paper war with the US and they are surely winning.....lets face it......wars are expensive and messy...this way if china wins all they lose is a trillion dollars in treasuries...alot less than a "REAL" war that can cost 10 times that plus all the lost lives!

As for your other post about auterity....do you really think american voters are prepared for austerity?

 

So what? They have billions of poor people.

 

it is my guess that china has this secret plan to destroy american industry and are doing a great job in the process!

 

American voters wouldn't allow Medicare to take a small cut, they're not going to be on board for the 30% cuts happening in Greece or Ireland. It's the end of American economic dominance unless something miraculous happens.

They don't even have billions of people.

 

China's economic warfare is more defense-oriented. If America attacks the Chinese market, China has treasury reserve.

China's just a cheerleader on the side, enabling America to spend herself to an abyss.

 

I think china has a master plan and that is to destroy american industry and in so doing destroy america economically. Sure it means harming their own people in the meantime by paying them rediculously low wages but in the long run china will defeat the US on paper!

 

Most of them are poor.

 

I don't buy it. Poor Chinese people can't buy the crap they make there. Only prosperous Americans.

 

Chinese real wages have more than quadrupled in mere years. The same cannot be said about America.

Indeed, at least compared to America— but I'd venture to say most Chinese consider themselves in great standing... since a decade ago they were poorer.

 

I keep hearing the arguement that china needs america.....to be honest with you I think its the other way around.....I think its america that needs china

 

They can once the economy starts to shift, but I think China wants to drag out the process— in case America/The West tries something.

 

China has been diversifying export-nations like crazy— the US is unreliable and, unsafe for dependency, and hostile.