Here’s a recipe for disaster: “ the Fed will keep injecting money into the economy until growth picks up and unemployment starts dropping significantly.”
QE1 and QE2 didn’t work, so now we need QE3. You would think that they’d learn, but remember, these are the same people that didn’t see the 2008 Recession coming and said that everything was fine. Until it wasn’t fine. Not to mention, can you point to anyone, besides bankers, that was actually helped by QE1 or 2? Me neither.
[From QE3: Reactions to the Feds big stimulus move – ]
On Thursday, the Federal Reserve announced yet another round of quantitative easing to boost the economy. Whats new about QE3, as we explained in our primer, is that this round will be open-ended the Fed will keep injecting money into the economy until growth picks up and unemployment starts dropping significantly. Essentially, Ben Bernanke is trying to shift expectations about the future course of the economy.
When you keep printing money, you make the currency worth less, until it’s worthless. If you don’t know what hyperinflation is, do your own research, starting with this Wikipedia entry on hyperinflation.
Then, go back and read and listen to what we’ve posted here on inflation and hyperinflation, as well as all the posts in the Economic Category. It’s important that you understand why this is significant to your preps.
Jim Sinclair of JSMineset has been saying that we’re going to see QE3 to Infinity for over a year now. I was beginning to think that maybe he was wrong, but here is it. You can’t fix anything by going into further debt, but that’s where this is headed.
We are going to see a further reduction in this country’s credit rating; Foreign countries are going to ask for higher returns on the money they lend us; Countries are going to be dumping US Dollars.
Keep on eye on this: 17 Questions You Can Ask Yourself On Whether The Economy Is Getting Better, and see for yourself where this takes us. Remember, we are in between stage 3 and 4 on the 11 stages of the Crash, as seen on InternationalMan.com.
If you haven’t already, you need to start stocking up on all the preps that you need to survive a long-term economic crisis, starting with the basics of food, water, portable shelter, safety and sanitation. Focus on these first and make sure you can take care of your family and loved ones. Then expand into other prep areas. Make your prep plan and work the plan.