QE "The Subsidy"

[errolanderson]

Days of U.S. QE money printing are supposedly over at the end of this month. But are they?

With equity markets now on a rollercoaster ride, will the Fed take their QE subsidy away from Wall Street investors or chicken out and QE4 is born? . . . .

QE has been a colossal failure (IMO) with its inability to stoke inflation while digging an uncontrolled debt hole for everyone.

Realize I'm being opinionated but . . .

Further QE from the Fed is a huge mistake as it is deepening the canyon walls for the market to fall off of.
I'm not a fan of subsidies by governments as this distorts markets and slows a 'true rebuild' of economies.

i'll go back to my cave now . . . .

[farmaholic]

The question I posed a couple to times already and directed at some in particular is, has anyone done anything to try and preserve capital/assets. Land is land but what about the paper side of investments? Sell them and buy what? Gold/metals, land, "affordable housing"(something anyone could buy not the houses worth over half a million), rental housing or commercial property? What? I've done nothing regarding the ****ing mutual fund(I hate them) portion of my portfolio. And the little bit of stock in the pipeline company I have I think will weather well.....

Let's hear what people think or have done...

[farmaholic]

If massive deflation or a correction takes place and every sector gets a haircut, what gets the brush cut and what gets just a trim?

[sumdumguy]

Kick the can down the road, that's the name of the game. Borrow -Spend - New SUV -New House way too big. The markets are fully pumped and Gold has lost its lustre. Its a full-blown mess. Thanx a lot.

It would be nice to know if Obama will really take away the soother when an election is right around the corner and his popularity takes a nosedive.

[farmaholic]

Obama's time is up, what does he care unless he cares if the Democrats get re-elected...

[rkaiser]

Maybe you can explain the whole QE thing a little bit Errol. QE - Queen Elizabeth???? LOL She is one of the group of private individuals who top this pyramid scam. How on earth - or anywhere else in the Universe - can anyone not see that we are borrowing money from private groups like the Fed, or the Bank of London who simply make money appear out of thin air. And then say we owe them interest - or this amazing thing I like to call usury. People's banks that create the money have been tried over the years and worked until these private banks found a way around the system through government manipulation. There is a way out of this folks, but first we have to admit that we have been dooped.

BRICS will, and actually already has changed the playing field, but it is still based on a power play to control currency.

On a personal basis, to try to protect or grow your own financial interest? Good luck, this thing is out of your hands. No commodity, including land is a safe haven. We need to get ownership out of our minds and focus on consciously creating things like "natural" real food and alternative forms of energy, which will screw the petro dollar for good and stop the wars.

Since this is an agricultural site LOL and, I think the best suggestion is to start focusing on real food and quit feeding a system that is doing none of us any good.

[boarderbloke]

errol, I'll be provocative for a moment. At this point, what difference does it make? I'm being serious, you know the saying, "you can't get blood from a stone." Creditors won't be repaid if things collapse now, if there is additional money that won't be repaid, what difference does it make?

After the dust settles following the collapse of the global economy, there's gonna be a reset. The scary thing is which government philosophy will be in power at the time the reset is made. There are people within obama's government right now who make statements such as, "you didn't build that", when referring to roads and bridges that companies use to ship goods across America. Many believe that the rich got wealthy unfairly or cheated, and would so love to "spread the wealth around."
I think the collapse will happen after the 2014 midterm elections and before the 2016 presidential election, that way obama will have a say in how the reset(atleast within the USA) will work.
farmaholic, I'm not sure there is a "safe place" to park your equity value. Would it be dumb to say U.S. banks? after all, they were bailed out last time! Maybe buy the best farm land there is, it might end up only being worth 10 percent of what you paid, but after the reset, you'd still have the best farm land there is. Unless of course the government in power decides you have too much good farm land and takes 75 percent of it away from you.

If there is a major collapse and a reset takes place, don't think the "rules" of what you think will happen or should happen are going to be the same as what you have known all your life. I believe it will be very unfair to those that have worked hard and have saved to pay their own way. there are by far more takers, than makers. JMO

[boarderbloke]

This from the Fed Chair this morning.

[URL="http://www.cnbc.com/id/102096839"]"Extent of inequality in US greatly concerns me"[/URL]

If you have money, they're coming for it!

[farmaholic]

I agree that there will be no safe place but I'd rather be in a 3/4tonne truck than a Smart car in a crash....

Some assets will get a bigger adjustment than others...

Interesting times.

[cottonpicken]

Farm-i ASSume your refering to me i thought i answered.

Gold is fine its a currency that governments cant print,this is a truth,how little people know about it is mind boggling to me,go to the bank and buy an ounce(minted by our government)hold it in your hand and you will realize why the other 6 billion people on the planet see it as money and wonder why the 1 billion westerners are so delusional

Farmland-could be the best-hard to say

Oil wells-perfectly fine

Apartment building-perfectly fine

Basically anything income producing thats real and what people will always need

The trajectory of the future can only be guessed at and when you do make the guess-and we all have to,like it or not-you have to take into account what all the market participants will do.

I believe everyone will want their healthcare,their education,their highways,their stadiums,their water and sewer,their police and fire,their welfare for the poor,their private and public pensions.........

Austerity will not be imposed but it will come because it has to,there is no getting around it.

The checks will still go out but you will be paid in wampum.

[farmaholic]

Thanks Cotton. Wealth as a liability... Who would have thought?

[cottonpicken]

The city of weyburn administration just voted themselves a 100 percent pay increase.

At face value its obscene,but the mayor was only making like 27 and councillors 17.

I dont anything about how many hours they work or anything so i guess i cant have an opinion one way or another,but it seems like a pretty good metaphor about the world we live in.

[sumdumguy]

The Definition of Currency: "A system of money in general use in a particular country" , "something that is used as a general medium of exchange".

How do you figure "Gold" is a currency?

[cottonpicken]

Ahhh,if your as old as i think you are what was in your dollars in the early 60's?

What was the us dollar up until 71?

Why did they call it the pound sterling?

Why do central banks have it?

The last 40 years seem to have erased the previous 5000.

[errolanderson]

boarder . . . I don't think you are provocative, I think you are right.

The economy needs the house-cleaning and the reset button triggered in order to get the 'green buds' of real economic growth going again . . . not protecting the old money on Wall Street.
But there is an ass-kicking in this process.

Janet Yellen is warning today of the growing U.S. economic disparity, but who built this castle? . . . The U.S. Federal Reserve (IMO).