Quantitative Easing Part II.

[ZenOps]

http://finance.yahoo.com/news/Quantitative-easing-2-is-here-cnnm-1729089799.html?x=0

Its not exactly a term that is used very often. Even most economists have never heard of it.

But I'm assured by my right shoulder devil this is one of the signs of financial Armageddon. Quantitative easing, is nearly the same as printing more money (like Zimbabwe) but without the blatant extra dollars running around.

Normally - one would lower the countries interest rate, but since the interest rate cannot be below 0.0%, strange measures have to be taken to temporarily alleviate the damage.

Not only does real estate now potentially have negative value, but so do US dollars. (or maybe better to say that a US dollar has a negative earning potential)

Gold up $34 so far this morning.

[davidI]

Yep, scary shit. It's going to kill the US$ for a while and I really don't think it's going to stimulate the economy that much since companies are hoarding cash anyways.

If growth does get restarted, inflation is going to fly for a while.

I'm not really sure where to put my money right now. Commodities will be strong while the $ drops but eventually there is going to be a bust.

The markets are thrusting up but a lot of the technical indicators show it as overbought. I looked at a bunch of different stocks today and the RSI & Stochs are looking overbought for sure.

Canada's real estate could be in trouble if inflation does fly up...

So many if's...

[ZenOps]

You could be right about commodities.

All the rich people fled to gold about 2 1/2 years ago. Those who bought have pretty much finished their hoarding.

The only people left to buy things like gold are the "rest" of the people who are just catching on that the U$ dollar is a negative return on investment (which hasn't happened.... well its never happened in my lifetime)

But that doesn't make a difference, as the "rest" don't have any money left to buy anything anyways. So there could very well be a breather in the ridiculous runup of commodities lately.

Canada is doing a very patriotic thing - holding onto Potash for a better deal, and not getting worthless paper dollars.

[Cos]

Originally posted by ZenOps

Canada is doing a very patriotic thing - holding onto Potash for a better deal, and not getting worthless paper dollars.

yeah i was happy to hear that yesterday

[Guillermo]

THE SKY IS FALLING, THE SKY IS FALLING. :facepalm:

[ZenOps]

It better be falling in pizza sized chunks if we are to justify $16 Billion for F-35 fighter jets.

Heck, all we have to do is wait for $1.07 and pay them in loonies and its a free Billion.

Its like govts completely lose all fiscal control when paying for shiny fighter aircraft. Err wait, sorry that applies to shiny cars as well.

[Pinner]

The press (TV) doesn't seem to be covering this story.

600 billion should make the news

[ZenOps]

It is quiet out there... $600 Billion is definitely newsworthy - but maybe there is too much negative news out there right now.

Jim Prentice just quit his federal minister position in complete surprise. That is strange, very strange... They usually give a good months notice before pulling out of a important position like that. Almost like a president or a senator just saying "I quit", its not supposed to happen like that...

There is something wrong going on, and I'm not sure what it is.

[broken_legs]

Originally posted by Guillermo
THE SKY IS FALLING, THE SKY IS FALLING. :facepalm:

go read a book.

[broken_legs]

Originally posted by ZenOps

Jim Prentice just quit his federal minister position in complete surprise. That is strange, very strange... They usually give a good months notice before pulling out of a important position like that. Almost like a president or a senator just saying "I quit", its not supposed to happen like that...

.

Jim Prentice works for a Canadian Bank now...


Im sure there wont be any abuse of his political connections. :rolleyes:

[Canmorite]

When they mentioned 'QE2' on CNBC I immediately thought "What, Deerfoot is making the news over there?"

Gold back up to nearly 1400...