Dear MarketClub Member,
We value your viewpoint as a member of MarketClub, and hope to be polling members on a regular basis on different topics. We'd like to hear your opinion on timely subjects like FaceBook, the price of gold, the economy, elections both here and in Europe, and on other markets that hit our radar screen. The collected information will be displayed to all members in real-time, and we encourage you to participate with your own thoughts and ideas. With that in mind, here is today's poll question:
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All the best,
Adam
QE has been going on since the early 1900's . Long before the last few years when more of the population became aware of it. Inflation is the devaluation of the dollar from printing too much money, that's why the dollar is worth around 5 cents of what it was worth in the early 1900's. What happens when you give a bunch of weasels (congress) complete control over our economy and government without monitering them? QE is going to continue, because when it ends, club med for the politicians ends. They're not trying to help the general population, they're taking care of themselves. Why do you think the only one in Congress who wants to get rid of the Federal Reserve is Ron Paul? The Federal Reserve is bleeding the working people in this country dry through inflation (devaluation of the dollar). Whenever Ron Paul brought it up in the GOP debates they changed the subject as soon as they could. I think the Republican party should change their name, Republican signifies Representative Government. Our Republicans are opportunistic self serving career politicians just like the Democrats.
I have an idea lets start a new monetary system. This time I get to have the printing press in my garage, I get to decide who gets any money out of thin air and I get as much as I want, like our Congress does now. What a scam!
Local currency is not new. The Berkshires region of Massachusetts has local currency It was launched September 29, 2006 by BerkShares Inc.,
Check them out: http://www.berkshares.org/
John, totally agree with your summation of our government "employees?" They do not work for us as it was meant to be according to our founding fathers. We now work for them, all their perks, benefits, extreme life styles like jetting home on weekends on our dime. I am one of the Americans that is totally sick of the corrupt bunch in WA D.C. Just read an article on the collapse of the US Dollar. And, yes, I did notice the total disregard the media showed Ron Paul. In my humble opinion, he is the only one making any sense and not afraid to speak it.
QE3 will happen when Ron Paul and Mitt Romney beg Ben Bernanke to provide QE3--and not a second before. Don't think economically--think politically.
Something to think about, Cherubim
And just exactly what planet are you from?
And so why is it not correct to interpret what's going on now as Ayn Rand's "Atlas Shrugged," playing out for real? I've read the book twice and I just recently watched Part One of the new movie production. It's spooky how it's all beginning to happen just like she authored it. Now if we could only see the final chapter of Edward Griffin's "The Creature from Jekyll Island" play out also, perhaps the reality of simple times, low prices and no inflation would come again.
QE has worked but the illness is stronger. More QE will only help inflation on stocks an basic materials. It doesn´t work for the economy or jobs. The culture is too focused on efficiency and money will end in software in stead of jobs. The FED will recognize this !!!! People are loaded with debt and need some form to earn the money they own back. Inflation is not the solution because it hits you in the face with basic materials you need every day.
I would assume that QE3 in some form of operation twist or whatever will be announced before the 30th June, or the Bond market will collapse, because they are the single biggest buyers at the moment. I remember back in December 1998 when the Japanese attempted to move away from Quantum Easing in the form of buying their own bonds, the bond market collapsed and they swiftly annouced another round of QE and have never failed to since, I think they are at QE24 now?
That is the name of the game - Print until you can't print no more. Most of it is all electronic now as it is. It is just a few buttons they have to press. That is one of the reaons for the irresponsibility - it is too EASY to print money. By the way, a great site to learn about money is http://www.HowMoneyReallyWorks.com Anyhow, my question is how many QE packages can they do and don't forget about all the mini QE's as well. They just call them diffrent names.
Qe ad infinitum is guaranteed! But it will NOT help as long as the money is not distributed evenly.
You are so right, Michael. Just think what our economy would be if the government had sent checks to its citizens instead of the dead beat banks. Homes would not have been foreclosed. retailers would have prospered, car dealerships would not have needed a bailout. If the billions had been put in the hands of its citizens instead of the banks, we could be in a thriving economy by now, and the banks......well, who would need them. We should have let them scramble to save themselves instead of letting the citizens supporting them. How messed up are we?
Totally unprecedented times indeed. After QE1 and QE2, the USD index is flat, so why wouldn't the thieves run QE3?...... it seems to have no effect on the US Dollar over the long term.
As part of the working class I can tell you first hand how QE is effecting my purchasing power.
The cost of food, energy, housing, taxes and insurance have and continue to ALL rise steadily in my area (greater Toronto), while my ability to earn has depreciated. The price decline of corn, wheat and oil are having no impact in reducing prices at the grocer and pumps. I'm lucky my house is free and clear, but my manufacturing business is not, and I am in a gradual process of liquidating assets I can get by without to at least settle my debts once and for all. Once liquidation is completed this year, I may have to cancel all my insurance policies, except mandatory auto as they all have become luxuries. If the economy gets worse, I will sell my house in the city and move to my northern property where the realty taxes are 70% less, firewood, venison, and self-sufficiency is in abundance. Obviously this is a bad case scenario, but it could very well be a reality for manufacturing entrepreneurs like myself. Why work your ass off when the rewards aren't there?..... I might as well go back to a simple low cost less stressful rural life...........Just imagine the contagion from a tsunami of insurance cancellations......especially pensions!
Marcus, I think more and more people are thinking as you are. Land to grow ones own crops, raise chickens and enjoy some freedom while we can. Did you ever watch The Good Neighbors? I have friends that are growing crops, etc. and making it on 5 acres of land. They will make it, unless, of course, the government decides to move people where they want them in order to environmentally protect the land of their choice.
Marcus, you are right on. I am doing the same thing. Being Blessed by having our house and property paid off we are cutting back to live a more simple life with less stress. No since busting your butt only to have it given to someone else. It is funny how commodity prices go up and the goods we buy get more expensive but when the commodities come back down the goods do not. We farmed professionally for years back in the '70s and '80s and seldom made more than wages but it was a very good life. We plan to farm again only very differently this time with emphasis on natural / organic foods on a small scale and yes, farming to feed ourselves. There is a lot to be said for living the rural life. Best of luck to you. The only fly in the ointment would be, as gg says, if the government decides to make major moves in the population to restructure America. Hope and pray that does not happen.
If our governments went that far, there would be a violent revolution no doubt. I know I'll be sailing the south pacific by that time. I will never give up my liberties for the sake of other peoples entitlements and obligations. Do we really know anything about living outside the philosophy of fiat money? Good luck to everyone downsizing and learning new skills to be more self-sufficient.
Marcus, sailing the south pacific sounds wonderful and a great idea. Just keep the sails high. I agree with you about not giving up our liberties, but there is a high percentage of people on entitlements on this time. I wonder what they will do, what choice will they make. I have a friend that is bartering with goods she makes for things she wants or needs, such as a trade of a handmade rug for a haircut just for one example. Bartering is already taking place. So I would suppose this is how it would be without a fiat currency. Which gives me pause, how soon will the government tax bartering?
Hi Marcus, I am putting my big house on the market in two months and buying down with no mortgage. The school taxes have gone up on the house every year for eleven years which is a increase of 3k additional from where I started. I can no longer afford anything with the high taxes and I do not want to work 12 hr days anymore because it is not worth it. I grew up with a big garden and I am going back to a big garden and work a lot less when i get my youngest out of college in four years. I am tired of risking everything for it to be taken away later because of bad politics and bad laws and regulations that have hurt the free market and our country. I am going to let someone else pay all the high taxes and risk themselves. LOL, for someone in the top 10% income in the houshold I feel dirt poor. I need to work less trade more and when they raise the taxes on trading who knows.
From the postings on this site, there are many more people considering downsizing and doing with less, while living a much less stressful life and providing their own food. I wish everyone the best who decides to live this life. We want to do the same. I believe it will be very nasty in the near future in urban areas.
The way I see it JP is we either downsize now or be forced to downsize later. Yesterday, I just sold a John Deere 710D backhoe as part of my liquidation plan, and not surprisingly the buyer is a farmer, and almost all the calls I received on the machine were from rural farmers. I especially need to learn to think in terms of ours and not mine, I notice many of the farmers that came to look at the machine did so with their extended families, and made decisions together. I don't think I could do this with my old man, because were both way too independent, but i think it worth considering grouping resources to still enjoy a decent life.
The long-standing best definition of insanity is repeating the same activity with the expectation of different results. Enter QE1 and QE2 and possible sequel intended, no doubt, to demonstrate the total lack of any "learning curve". I have read where, had The Fed NOT engaged in 1 and 2 the economy would've been a lot worse. While that is possible.....in the short term, I remain convinced that such socialist meddling with free markets comes with disastrous long-term consequences....which is what we should be far more concerned about. The Fed's actions are tantamount to providing some passengers on the Titanic with life boats and everyone with life vests after first, through other interventions by the same government, ordering the ship to plow headlong, at night, at top speed, into known ice fields and thus garnering the long embarrassing slice in the hull. Please note, insufficient life boats assured most would die. Providing life vests in sub-zero water merely prolongs the agony by minutes but gives the appearance of caring and aid. The longer term prevails and they die anyway. The brain-dead, dumbed-down "occupiers" rail against Capitalism as the enemy....the failure that has caused their plight when, in reality, the US has not been operated, in large part, in a pure Capitalistic free market for eons. "Crony Capitalism" prevails where Republicans and Democrats alike, in government, and in charge of large corporations, work to curry favorable legislation and sweet deals, grants, and especially green loans for often ill-fated enterprises, while the public, the consumers, investors, and tax payers be damned. Once the ill-dated Euro dies its death, the dollar, dramatically weakened by the QEs will go the way of the DoDo too.....sadly....as "planned" by the International powers....Bilderbergers and such. A QE3 would be the coup de gras.
Wow….If there is another QE..You cant buy your way out of everthing!
It will do more harm then Good..
Well, Ben will do it because he thinks it will do some good. Problem is, the bankers have the economy by the throat. Borrow from the fed at 0.05 % or whatever, then loan to suckers at 6-10 percent. Think credit cards. They took everybody be surprise by crying to get bailed out because they did a stupid thing, Create debt at 30 t0 1 reserves. And suckers relented and did it. People with good sense (if there are any left) will begin to see that money loaned at ANY interest is sinful. Muslims know this.
Lincoln issued debt free money and won the civil war. Washington and his friends issued Continentals and won independence.
Government should PRINT money to pay their bills. Backed by nothing. When it was backed by gold did it work? No. When the Fed borrowed from the banks, did it work? No. The bankers just had another sucker on the line. Just more debt. And to whom? The suckers's bank of course. Debt follows debt. And bankers love it. Soak the poor slobs. Soak the Fed. Soak everybody too stupid to realize it. Bury the bankers. Let them fail. They deserve it. Wealth can only be created by work. Period.
I agree with almost all the comments. There will be another QE. But I wonder how American citizens will respond to it. Negative, knowing that we will face hyperinflation one day. Positively, thinking that The US can spend its way out of a recession/depression and "all's good." Any opinions?
ITS GOING TO BE INTERESTING TO SEE WHO WINS THE BATTLE BETWEEN THE MARKETS AND THE FED.IM THINKIN MR. MARKET WINS EVENTUALLY.
They now have very little alternative, other than chaos.
No, but it's all smoke and mirrors so Yes it will look like it is until one day when the whole house of cards fall in.
Kicking the can is the only result
It would be political suicide in an election year for O'bama. GOP would call it more big gov't spending. won't happen if though it makes sense.
QE never ended and will never end until the US defaults on its debt. For example, can you say "Operation Twist"?
thats the truth
QE3, QE4, QE5, QE6????? Using monopoly money?
The most ignorant president in our history about our country intrnatioal history, business, management, past and present world political philosophy, health care as it exists, foreign affairs, and .international protocol.
IMO QE is inevitable, and likely sooner than most expect. Will it help? Short term perhaps but the aftermath will make matters worse than the 2008 meltdown. IMO, we need to face the music---
QE3 would only help if money was distributed and used wisely. NO Chance of that happening in this America. 50-50 chance FED will try again. GOD Help us if Hussein Zero is still in office.
There's a big difference between the headline poll question:
"Do you think another QE is on the way?"
...and the actual poll question:
"Do you think a QE3 package will help the U.S. economy?
First question: yes
Second question: no
Do I even need to explain?
The purpose of QE was to lower rates as a stimulus for the economy and Operation Twist was to force down the long end of the yield curve. At the moment due to the Euroland fiasco there is no need for the FED to do QE as we have come to know it because the world is doing it for us with 10 year rates below 1.5% and even 30 years a lows. None of the low rates even takes in to account the fact that real rates are negative which you can check out here courtesy of the US Treasury Department http://1.usa.gov/M1bxVX . Now all that said the economy is in the dumper and it is an election year so the FED will need to get creative here. The FED has a small window in which to act because they will not want to appear politically motivated, so probably by the next meeting mid June at the latest. Some of the FED personnel like Rosengren out of the Boston Fed have been floating trial balloons talking about the need for further easing, but really easing is not going to do it when rates are at rock bottom. In my opinion Benny is going to have to harken back to his helicopter speech and preventing deflation thesis and come up with new stimulus items ot buy that will get things moving. Benny has discussed buying equities and any and all instruments to prevent deflation of which he is deathly afraid. All that said he will need to come up with something to jump start this since there is no political will in Washington to do anything & they are kind of hand tied because of the deficits and antispending\ stimulus sentiment. What ever he comes up with will have to be large enough to make an impact but not so large that confidence is lost and the inverse is true as well if it is too small the market will panic. He needs to find the Goldilocks solution- I for one do not envy him.
death, taxes, QE3. You can count on it. Not sure when--just sure.
What choice will the Fed have .. deflation or inflation?
And the 'FED' is responsible for these two choices. They fed the bubble and every honest man knows it. I've been investing (building a business) in SE Asia, where their governments/economies will drop trade barriers,, labor migration barriers and maybe even have a common currency in just 3 years (2015)..
QE3 will happen. No Ifs no Buts
Give Money to the people, And let it filter up through the system, Instead of just rewarding Bad business practices! [ Absolute power corrupts, ABSOLUTELY ]