U.S. QE 3

[furrowtickler]

They say they have no choice but to impliment QE 3. Thoughts? Cotton? Charlie?

[ajl]

This is true. Otherwise interest rates
will rise in the US making them insolvent.
I think they will dress it up a little bit
but the money printing will continue.

[cottonpicken]

My guess is yes. When and what it
looks like is another story. They
could crash it just to make us beg
for it. When the bond market comes
unglued there will be plenty of
liquidity for commodities

[TOM4CWB]

Furrow,

Japan has led the way to low interest rates... and expanded money supply... for well over a decade.

"The Fitch move means all three major ratings agencies now have their fingers poised on the trigger to downgrade Japan's credit status unless they see moves by the government to strengthen the country's finances.

Fitch cut its outlook to negative from stable and affirmed its AA minus local currency rating, its fourth highest and the same level as S&P's but one notch below Moody's Aa2.

"A stronger fiscal consolidation strategy is necessary to buffer the sustainability of the public finances against the adverse structural trend of population aging," Andrew Colquhoun, head of Fitch's Asia-Pacific Sovereigns team, said in a statement.

The yen fell moderately against the dollar and the euro immediately after the move, which follows a similar downgrade by Standard & Poor's last month, although most market focus was on Europe's debt problems.

Responding to the Fitch news, the Japanese government offered assurances that it would continue efforts to bring public finances back under control.

Public debt is already twice the size of the $5 trillion economy, the heaviest burden among industrialized economies, and is set to swell further as the government deals with the cost of the disasters.

"On the one hand, Japan is working hard to rebuild. On the other hand, it is a given that it works hard on fiscal soundness," Deputy Chief Cabinet Secretary Tetsuro Fukuyama told reporters at a Group of Eight summit in the northern French seaside town of Deauville."

Soooo no matter how bad it is... it can get worse.

Like in the 1930's... the US spent massive amounts on public works projects... which set the stage for decades to come... of growth and increasing productivity.

[cottonpicken]

Never liked the japo/us comparison.

Reserve currency status/qe programs/carry
trade/social differences the path is similar but not
the same,outcomes will be different.

The 30's?-the dollar was devalued 75%,gold was
confiscated and foreign creditors and people where
screwed.

But hard facts are hard to face.