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FSN: QE3 Into Infinity and Stagflation
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
Federal Reserve now purchasing over 50 percent of MBS and planning on buying $40 billion per month into infinity.
from My Budget 360
The Federal Reserve is playing with financial fire here. The last employment report was terribly weak and no amount of spinning can make it good. The drop was largely based on hundreds of thousands of Americans dropping out of the labor force. Is that really a positive sign? Last week we received data from the Census Bureau showing US household median income is now back to levels last seen in 1995. The Fed responded with an open ended invitation to inflation via Quantitative Easing III. Yet there is an inherent risk that is now approaching with stagflation. With GDP growth tepid and employment weak, any rise in inflation will likely stifle consumer demand in the current economy. How much lower can the Fed really push interest rates by purchasing mortgage backed securities? We are already at negative interest rates. Yet the Federal Reserve only understands this monetary policy measure and is beholden to the financial sector. These same policies have been in play since 2007 and who is really coming out ahead?
Continue Reading at MyBudget360.com…
2012-09-16 02:28:09
Source: http://silveristhenew.com/2012/09/15/qe3-into-infinity-and-stagflation/
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