QEternity!
Google Soars, Gold Up, Dollar Rallies!
This isn?t over. Federal Reserve Chairman Ben Bernanke is now being called a Kamikaze pilot! David Stockman said the Federal Reserve and central banks are the fundamental threat to the economy. September 13, 2012 was the American Day of Infamy and the death knell of the American Dream. The Federal Reserve announced indefinite quantitative easing, QEternity, plus a zero-interest rate environment extended through mid-2015.
Quantitative easing is an addictive drug. Is the current injection enough? Already there is talk of more QE! Would this be QE Infinity 2.0? How long can this addiction continue? The answer is as long as the U.S. Dollar is the world?s reserve currency -or- the Great American Sovereign Debt Default occurs.
An economic globalization approved by the USA 2-party political dictatorship and funded by the Wall Street Banksters precludes a sound internal USA economic policy and structure. Yet we continue voting for the same empty promises offered by both parties over and over as if this next time will be different. Albert Einstein called this insanity: ?doing the same thing over and over again and expecting different results?.
The economy itself has fundamentally changed with cheap human labor outsourced abroad (suicide nets and police state control expenses paid for by the slaves via subsistence pay) and rapidly expanding automation (rise of the machines) implemented domestically. The downward spiral from higher paying production jobs to lower paying service jobs to ultimate obsolescence continues for Americans.
Therefore, the Federal Reserve will flood the world with U.S. Dollars, Congress will run budget deficits and borrow more money, interest rates will remain artificially low lest the insolvency of America be revealed by skyrocketing debt service, and the Fed will continue expanding the central bank balance sheet until the bluff is called. Follow along with the Fed Hail Mary, indefinite quantitative easing, as I periodically monitor the value of selected assets in the new QE Infinity Economy.
QE Infinity Performance To-Date
Google +9.21%, Gold +2.44%, Bonds +0.73%, Dollar +0.36%, Real Estate +0.31%, Stocks +0.29%, Apple -0.40%
QE Infinity Performance by Week
Federal Reserve Game Plan
Business Insider: Chart of the Day (Source: KT ZMICO economist Isara Ordeedolchest)
Disclosure: I have a beneficial interest in a long position in AAPL stock.
Market values are as of the close on September 12, 2012, the day before QE Infinity was announced, and the weeks ended on Friday. The 6 assets reviewed are Apple ($AAPL), Bonds ($BND), Dollar ($USDX), Gold ($GLD), Real Estate ($IYR), and Stocks ($SPX). Google ($GOOG) is included as an aside this week.
$DIA $IWM $SPY $QQQ
Source: http://feedproxy.google.com/~r/StockTwitsBlogs/~3/4nhxHdNKmHU/
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