US Action News

Even in a Depression our stock market could go to 20,000 if the dollar continues to be debauched.

The contraction phase of not having anything backing this inflated wealth will take 25 years of contracting to get back to sustainable levels.

Hyperinflation or a brutal hike in interest rates — [could make] the present “fiscal cliff” look tame in comparison. – IBD

There is no escape from the box that we are in. Printing money does nothing to heal imbalance in economies. It, up to a point, covers up these imbalances while continuing to make them worse.

By keeping real interest rates negative the Federal Reserve is destroying the value of your money and raising the costs of everything. Economist Marc Faber explains the dire consequences on the global horizon.

This is so crazy that even former Federal Reserve officials are speaking out against it. For example, former Federal Reserve chairman Paul Volcker says that QE3 is the “most extreme easing of monetary policy” that he could ever remember.

As Fed’s two previous QE’s have demonstrated, due to the structure of current global banking and financial system, QE has only mostly benefited banks to hoard cheap capital from the government to speculate in commodities and stocks to get better returns, rather than circulating and lending to business and consumers like banks are supposed to.

“Once again the BEA has used “deflaters” that will strain the credibility of the public, especially if they buy gasoline. To correct the “nominal” data into “real” numbers the BEA assumed that the annualized inflation rate during 1Q-2012 was 1.54%.”

When the next wave of the financial crisis hits, the U.S. economy is going to fall back into recession, financial markets are going to crash and unemployment is going to absolutely skyrocket. But you will never hear any of that from the Federal Reserve.

Ironically, the very act of rolling out this product is thus the alarm bell that higher rates are a-comin’. – Zero Hedge