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Gold/Mining/Energy : Gold & Gold Stock Analysis
GLD 398.89+0.1%Dec 30 4:00 PM EST
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To: ecrire who wrote (27949)6/4/2012 1:47:45 AM
From: GST12 Recommendations  Read Replies (1) of 29622
 
<QE, i.e. interest rates near zero> Interest rates at zero is not QE. QE is bailing out the US treasury. There is no way the US can continue as it is unless the Fed bails out the US treasury. It does this by printing money to cover the current account deficit. This creates the illusion that treasuries are in demand and inflation is 'not a problem'. Unfortunately, QE is hyperinflationary unless there is a way to tame the current account deficit -- and at present it is, for all practical purposes, impossible to tame the current account deficit. QE is not merely easy money -- it is fake money. QE turns the dollar into fake money -- not a matter of much importance unless you are the world's reserve currency. When you print fake money you put your country at risk and you pay the consequences. When the Fed prints fake money it puts the global economy at risk. What is an ounce of gold worth denominated in fake money?
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