SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Big Dog's Boom Boom Room
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: ChanceIs who wrote (149926)4/22/2011 12:07:38 PM
From: teevee  Read Replies (1) of 206093
 
"Welcome to reality, Ben. Your "let's pretend the recovery is real" game is nearing an end. If you push the dollar down any more, then oil will go up and tip the real economy into a recession that QE3 will only make worse as you send the dollar into freefall. If the dollar rises, then your beloved "wealth effect" dies a horrible death on the rocks below."

No QE 3 is needed and here is why. About $1.2 trillion in treasuries are due over the next 12-18 months and the money will be printed to redeem them. The unknown of this is how much of that money goes into the economy instead of being rolled over at low rates. If too much of this "new money" goes into the economy, the treasury rates will have to go up to "withdraw" some of that money from the economy to keep inflation in check and to keep a lid on new bubbles forming. Bernanke's job will be balancing rates with economic growth. Needless to say, with an election looming in 2012, there will be pressure to keep rate increases to a minimum.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News