Jim Willie has a hard-hitting article on the desperate economic and financial condition of the US. Despite all the “green-shoot” nonsense, words about recovery and other happy nonsense that emanates from Washington, CNBC and other pet media sources, Willie points out:
… no solution to the financial crisis has been installed, nothing fixed, no big banks liquidated, no end to monetary inflation, no end to outsized USGovt deficits, no change of Goldman Sachs running the USGovt finance ministry, no discharge of big bank home inventory, no end to secretive subterranean support of stocks and bonds, no revival of the housing market, no return of US industry from Asia, no prosecution of Wall Street for multi-$trillion bond fraud, no end to money laundering of narco funds to Wall Street banks, no interruption to the endless costly wars, no end to the propaganda obediently pumped out by the US press & media networks.
Willie is convinced that QE3 (or QE until the dollar collapses is inevitable and cites these reasons:
- Basically, QE2 was a failure, so it will be repeated.
- The QE2 provided demand for USTreasury auctions, when most foreign creditors went on a buyer’s strike. So QE will be repeated.
- The housing market has resumed its downward path, with frightening declines to the bank balance sheets. So QE will be repeated.
- The big US banks remain insolvent, loaded down by a mountain of one million REO homes in inventory. Buyers of mortgage bonds have disappeared. So QE will be repeated.
- The USGovt deficit picture is a full blown nightmare. Rather than see market mechanisms kick into gear, with higher interest rates imposed, the leaders will continue on the hyper monetary inflation path. So QE will be repeated.
- Talk of the risk trade counter to the USDollar ending is nonsense. Weimar has met Wall Street, the syndicate handlers of the USGovt and US security agencies. The Printing Pre$$ with US nameplate cannot be stopped. So QE will be repeated.
- The Gold & Silver prices will move up hard, as soon as the light bulb goes on that QE3 is imminent without interruption. One must be a total moron not to anticipate its immediate installation. To decide not to continue QE would force failures upon major US banks.
- The USFed is all bluff with no good cards in their poker hand. They will wait for stocks to be a little cheaper and both sides of the USCongress to beg for QE3.
[...] Jim Willie on Economic and Financial Condition of US (economicnoise.com) [...]
Well Monty, just got through reading the full article and a number of different articles that one led to. Interesting times. It would seem that there is a very narrow opportunity to buy precious metals over the next month or two before they take off. That window defined by the end of QE and the resumption of. Silver has taken a hit this week, while gold did ok until yesterday. I have some metals though not enough (is there ever enough). I’m just a middle class oaf, but I could survive for a year or two if TEOTWAWKI occurs. I do think that our nation can’t possible survive intact as it is currently constituted (little “c”) because of the vast number of urban drones who are clueless and violent. Fortunately, I live in RED flyover country on my 75 acre mountain surrounded mostly by old retired people and some independent minded younger, working people, who I’m sure are clueless about what is about to unfold. Well, anyway, just musing. Take care and keep up the good work.