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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ecrire who wrote (27949)	6/4/2012 1:47:45 AM
From: GST	12 Recommendations Read Replies (1) \| Respond to 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?

To: ecrire who wrote (27949)	6/4/2012 8:55:05 PM
From: carranza2	2 Recommendations Read Replies (1) \| Respond to of 29622

E, I think you need to bone up on QE. QE is a central bank's purchase of securities in order to get a pre- determined quantity of money into a faltering system so that demand is stimulated. Because it involves a pre-determined quantity, it is referred to as quantitative easing. It stands in contrast to a CB's buying and selling of stuff to keep interest rates at a certain level. That is not quantitative easing because the amount is not pre-determined. youtube.com I disagree with the notion that QE is always hyper inflationary or even inflationary.....Japan is the example there, the rule- breaker. IMO, the reason it does not work is that it's not a focused approach to stimulus. In our case, a lot of the QE money ended up financing stock market speculation. Main St., its purported target, saw little of the moolah. It's great for gold. My money says that we won't see any more QE in the US, though other approaches are possible. I also think gold will do very well, however, because real interest rates are negative, and are likely to be negative for a long time. Increased money supply, too, will help POG.