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<p>[QUOTE=&quot;InfleXion, post: 1406317, member: 29012&quot;]I put a strong likelihood on QE3 this summer, but it doesn&#039;t have to happen. There is always the possibility of negative yield bonds that the Fed can buy which will require payment to continue to hold them. It will be the QE that keeps on giving without being nearly as overt. Nevertheless, 16 of the 21 primary dealers for the Fed are predicting QE3 this summer, and Jan Hatzius of Goldman Sachs is one of them. GS is who really runs the world according to some, and if you look around at the positions of power their alumni occupy it is a pretty easy pill to swallow. </p><p><br /></p><p>&nbsp; </p><p><br /></p><p>The 3rd installment of Quantitative Easing, not just money printing, but also using that money to buy US Treasuries. It has a two fold inflationary effect, and which is the greater culprit is largely a mystery, at least to me. Inflating the money supply is the primary reason, but as soon as everyone knows that is going to happen they start digging in taking long positions and driving prices up so it&#039;s hard to tell what&#039;s legit and what&#039;s speculation. Regardless, QE1 (the patch for the economy in 2008) and QE2 (the next shot in the arm to prevent the first QE bubble from bursting) are mostly responsible for the move in silver from $8 to $49 as I see it. QE was the shot in the arm needed after the housing bubble, which was the shot in the arm after the dot com bubble. This has been building up and the perpetuation must continue one way or another to avoid letting the air out of the bubble, which is the end result market equilibrium desires barring the absence of hyperinflation. What else will QE3 do? It will prolong our ability to live beyond our means. It will stave off default on the debt. It will raise the cost of living for every US citizen. And it will raise the prices of all assets, precious metals included. I feel like precious metals have more upside because once they are seen as safe haven by people en masse the supply figures will start to play a factor.[/QUOTE]</p><p><br /></p>

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