QE3: Helicopter Ben Bernanke Unleashes An All-Out Attack On The U.S. Dollar
 

QE3: Helicopter Ben Bernanke Unleashes An All-Out Attack On The U.S. Dollar

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You can't accuse Federal Reserve Chairman Ben Bernanke of not living up to his nickname. Back in 2002, Bernanke delivered a speech entitled "Deflation: Making Sure 'It' Doesn’t Happen Here" in which he referenced a statement by economist Milton Friedman about fighting deflation by dropping money from a helicopter. Well, it might be time for a new nickname for Bernanke because what he did today was a lot more than drop money from a helicopter. Today the Federal Reserve announced that QE3 will begin on Friday, but it is going to be much different from QE1 and QE2. Both of those rounds of quantitative easing were of limited duration. This time, the quantitative easing is going to be open-ended. The Fed is going to buy 40 billion dollars worth of mortgage-backed securities per month until they have decided that the economy is in good enough shape to stop. For those that get confused by terms like "quantitative easing" and "mortgage-backed securities", what the Federal Reserve is essentially saying is this: "We're going to print a bunch of money and buy stuff for as long as we feel it is necessary." In addition, the Federal Reserve has promised to keep interest rates at ultra-low levels all the way through mid-2015. The course that the Federal Reserve has set us on is utter insanity. Ben Bernanke can rain money down on us all he wants, but it is not going to do much at all to help the real economy. However, it will definitely hasten the destruction of the U.S. dollar. (Read More....)


Black Blade: Buy Silver - Buy Gold. Dollar weakens - wealth preserved with precious metals. Simple concept.

With all due respect i would buy guns, ammo, food and water way before i starting spending money on shiny metal.

Gold and silver are fine for preservation of wealth, but i think the majority of the people on this board and (probably in america) would be better off preparing for preservation of life rather than what little "wealth" we have.

I believe your on to something here. I don't really understand in a SHTF scenerio What the value of Gold and Silver would be. I'll admit I never studied the subject Perservation of life would come first Having good weapons Plenty of ammo Food and water would be top on my List Having outdoor skills and Military training would also benefit

+1
 

Normally I agree with Black Blade.. Not this time..
Keep your gold and silver..
Buy lead.. Makes great stuff that flies through the air..
Sorry but it is over...
Fed is printing mo money. Haaaa haaaa..
Worthless paper buying worthless "mortgage backed securities." Haaa Haaa.
Idiots..
Great idea..They tried that in Germany in the 1930s, it wont work you friggen idiots..
Buy stock in wheel barrows, to carry your money too the store...
The FED. Destroying America since 1913...

Food, ammo and all that is great for now but you can't fight your way to a house in south America. A bag of gold or silver is the same thing all over the world and could start you a new life. Just because these assclowns are destroying our monetary system doesn't necessarily mean the Brazilian system will implode. Do I want to move to Brazil? Nope, but I'll do what I need to do. I hear it's nice in Finland this time of year too.

"Gold is the money of kings. Silver is the money of gentleman. Barter is the money of peasants. Debt is the money of slaves."

Gold has always been accepted as "money" around the world for thousands of years. It has saved the Jew crossing a border away from certain death. It was what protected a Confederate southerner from the debt collectors when the paper money went bad. It's what preserved wealth and allowed many in doomed nations rebuild after war and total destruction. Fools will say "you can't eat gold" but gold is not meant for eating - it's meant to hold value so one can start anew and rebuild their lives. It isn't subject to the whims of those who run the monetary printing presses. In the end - It is another tool for survival.

But the world is a different place now, if there does come massive inflation and devaluation of currency the resulting civil unrest will make the LA riots look like a rowdy block party. Look at what happened during Katrina, and that was a relatively localized event, now multiply that 100 times across every major city and large population center across the US (possibly europe and other first and second world countries as well).

I'm not saying that anyone shouldn't buy gold or silver, only that it should be the last thing on the list in terms of prepardness. If you don't have enough food or water to survive through the intial strife, i wouldn't want to count on being able to "buy" more food with that gold. On the same token if you find yourself in the middle of a gun fight unless you have that gold cast into .45 slugs it probably won't do you much good either.

Its obvious from reading some of your other posts that you have all the other contingencies already planned for and taken care of, in your case it makes sense that you should try and preserve your remaining monetary accumulations.

I really enjoy reading your posts and i hope that this isn't taken the wrong way.

There are many SHTF scenarios. Not every event will be something like "The Road" or similar where survivors run, hide and evade cannibalistic gangs. Some more likely events are economic and financial in nature where there is a currency collapse where the US dollar sharply loses value. Whether it's an inflationary or deflationary event (i.e. Weimar Republic and Great Depression) those who retained wealth with Silver and Gold did fairly well in comparison to those who didn't. Even during the "Asian Contagion" of 1997 or the Argentine economic crisis 2001, we saw that those who owned gold made it through much better than others. Even today those in Greece and Spain who invested in gold have some breathing room while the rest of the country is in near complete panic as they suffer extreme unemployment and severe austerity measures imposed by the EU. I would rather have silver and gold than not. Thousands of years of human history can't be ignored. I am always wary of those who say those famous nlast words - "it's different this time".

10 Quotes From Financial Experts About The Effect That QE3 Will Have On Gold And Silver

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Do you want to know what QE3 is going to do to the price of gold and the price of silver? Well, you can read what the financial experts are saying below, but it doesn't take a genius to figure out what is likely to happen. During QE3, the Federal Reserve will be introducing 40 billion new dollars that have been created out of nothing into the financial system each month. So there will be more dollars chasing roughly the same number of goods and services, and that means that more inflation is on the way. In an inflationary environment, investors tend to flock to hard assets such as gold and silver. And it is important to remember that a lot of the money from QE1 and QE2 ended up pumping up the prices of various financial assets. This included commodities such as gold and silver. The same thing is likely to happen again with QE3. In addition, investors now have an expectation that the Fed will continue printing money for the foreseeable future and that the U.S. dollar is going to steadily decline, and that expectation will also likely give further momentum to the upward movement of gold and silver. Of course when it comes to investing, there is never a "sure thing" and as the global financial system falls apart in the coming years we are likely to see wild swings in the financial markets. So there is definitely an opportunity when it comes to gold and silver, but anyone that wants to invest in gold and silver needs to be ready for a wild ride. [Only registered and activated users can see links. Click Here To Register...]


Black Blade: Silver (poor man's gold) and Gold are defensive investments to protect your investment portfolio against other SHTF scenarios. Not all SHTF events are like "The Road". Not everyone will be able to barter goods and skills with their neighbors. There has and always be a need for a "medium of exchange" and precious metals have served that purpose for thousands of years.

I have to agree with Black Blade on this one , I am constantly in contact with some big financial people and all them are terrified what this QE3 will do . I am in contact with some low level finance people that totally understand the situation , just from the banking end of things . And for the icing on the cake , today I was talking with a friend of mine who is fairly liberal and he too understood the implications of helicopter bens statement. I say at this point , land with water , gold , silver, bullets , butter and beans should be your priority .