Thoughts on Bernanke, QE3, upcoming inflation etc.??

Well the biggest and most disturbing thing I heard Bernanke say was that QE will continue until unemployment reaches 7 percent, supposedly it's at 7.6 percent right now. After his Tues. and today speeches or diatribes the stock market took a bit of a nose dive but I don't have to tell y'all anything as most of y'all are up to par with the news of the day anyways. See below. I'm not trying to start a gloom and doom thread or anything but what is this QE gonna lead to when inflation finally hits the fan? In 2016 we will get a new Prez and then what? Are we gonna hit another recession because the gov't has pushed QE3 forward with absolutely nothing to pay for it? Certainly plenty of food for thought, QE3, what an insane idea that is!!! All I can say is hold onto your gold and guns cause once inflation hits us all, we will be in a world of hurt!

[h=1]Here’s everything you need to know about Bernanke’s press conference today[/h]
http://www.washingtonpost.com/blogs...ging-the-fomc-and-bernankes-press-conference/

[h=2]QE until 7% unemployment[/h]Well, that’s new.
There hasn’t been much news in the chairman’s statement until just now. Bernanke said that the FOMC expects to continue buying bonds — holding to its quantitative easing policies — until the unemployment rate falls to 7 percent, which it expects will happen next year. The U.S. unemployment rate is currently 7.6 percent.

 

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I'd post my thoughts, except that the original post is talking about a political event (yes, it's political, since the Federal Reserve Chairman and the various governors are selected by elected officials). I don't think we're allowed to make it into a political discussion.

 

Oh, you are of course allowed to turn this into a political debate. Just don't do that on Coin Talk. :devil:

Christian

 

As employment rises goods and services rise. Inflation is too much money chasing too few goods and services.

 

QE is a known and proven method to end a recession and has been used successfully numerous times throughout history. It all works when a sensible package that includes spending cuts, as well as higher taxes on those who can afford it, that creates jobs, is enacted. Of course this would require intelligent mature adults willing to negotiate for the good of all – not exclusively their own self interests.

 

I wish I could hit the like button twice on this one

 

:taped-shut:

See...this is the problem with CT! The Mods only react to political statements with which they disagree. If anyone offers a counterpoint (of which there are many), they get smacked! :fish:

 

I don't know, we've got both sides of QE represented here and I didn't say who is immature, ignorant, unable to negotiate, and only concerned with self interest - each side would point the finger at the other.

 

Progressive liberal "ear candy" always sounds nice...until you drill down a millimeter or so...I would be happy to continue given Mod approval. Otherwise, why don't we just let it go. :thumb:

 

The best way to keep politics out of a discussion is to never mention anyone by name, affiliation or an elected title. Talk only about concepts.

 

Conspiracy theories at work, eh? You (plural) have been asked here to take your political debates where they belong. Peter even set up a place for that - try www.partisanlines.com ...

Christian

 

Good insight!! Yes, if our leaders were intelligent mature adults we would have nothing to worry about.

Exactly my point. Inflation is still taking place but it just isn't showing it's ugly head yet because it's being smoke screened by other financial shell games. Personally I don't see this thread as having to become political in the least, jmho. As long as we stay away from right or left leaning comments we should be fine. :thumb:

 

Can you please list the numerous times it was used throughout history with success?

 

Inflation has more to do with the interest rate charged by the Fed than the money supply. If you graph the money supply M2, inflation rate, and Fed prime rate you will find a rough match between inflation and the prime rate. If you look at M2 you will find times where the money supply increased and the rate of inflation decreased. The reverse is also true where the money supply decreased and inflation increased.

 

I don't think that you can separate the Fed's actions with the price of PM's. Since the Fed is suppose to be a "non political" agency, we have to be able to talk about it in the bullion section. Otherwise, it is a useless place to understand bullion futures.

 

Mod "silence" IS taking a side. This thread is a perfect case in point. Folks on CT are free to spit out any progressive-liberal talking point they like, but if it goads someone into offering a counterpoint...the non-liberal is infracted.

If you're going to have rules...enforce them evenly...or not at all. :kewl:

 

It’s a matter of perspective. Being a progressive, I once thought exactly the opposite, as CT and the Bullion section in particular, seems to have many “righties”. But, after being on here for a time, the Mods do seem to be overall impartial.

 

For the sake of brevity, Google it yourself or take an econ class - it’s a tried & true method that works.

 

So if everything works as the Econ books say, how come the supply demand theory doesn't work with gold/silver?


The mint is about to mint the entire US annual supply of silver for its coins. It looks like well hit 50M oz this year, higher than 2011, yet the price keeps falling.

I don't need an Econ book to tell me something isn't right here.