US Action News

Look for the Fed to keep doing the same thing over and over and over again.

If inflation is 2%, why are prices up so much?

In the same way the Great Depression and the depressions before it lasted eight to 10 years, we will likely continue to see constrained economic growth until 2015-2016 (roughly nine years after U.S. home prices began to slide).

What do you expect from a President who names an energy secretary that thinks we should have higher gas prices “like those in Europe”? We warned that Obama is pushing up gas and energy prices with his “green” socialist agenda.

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.

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.