Printing More Money: Analyst Says to Prepare for 3rd Round of Quantitative Easing
- Posted on June 1, 2011 at 8:07am by
Jonathon M. Seidl
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QE1, QE2, and now, QE3? No, those aren’t British monarchs. Rather, they’re the numbers and letters that have become synonymous with the Federal Reserves practice of printing money and flooding the market with cash through the use of the bond market. By buying up bonds, the Fed has to “print money” to cover the sale. And when more money hits the market, so too does inflation.
The Fed has already gone through two rounds of quantitative easing, and now one analyst says we should get ready for a third round.
Simon Maughn, co-head of European equities at MF Global, told CNBC Wednesday that he sees the move on the horizon, and once again the U.S. will be a big buyer.
“The bond market is going in one direction which is up-falling yields which is telling you quite clearly the direction of economic travel is downwards. Downgrades. QE3 (a third round of quantitative easing) is coming,” he said. “The bond markets are all smarter than us, and that’s exactly what the bond markets are telling me.”
He added: “One more big injection of cash into the bond market should take you through at least the summer season into the beginning of the fourth quarter.”
“That cash injection will have the normal inflationary knock-on impact, driving back up commodities, supporting industrial stocks, dragging the financials up with them… I think it’s all about the monetary injection trade.”
Watch below:
The move is significant especially when you factor in rising food prices. According to the LA Times, wheat prices are “70% higher than a year ago,“ while ”prices for corn have more than doubled in the last 12 months.”
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Comments (146)
thecrow
Posted on June 1, 2011 at 9:11amhttp://michaelfury.wordpress.com/2008/09/24/as-wall-street-is-transformed-a-reminder-from-aaron-russo/
Report Post »emertz8413
Posted on June 1, 2011 at 8:58amOMG – STOP already! Prepare yourselves, this ain’t gonna be pretty!!
Report Post »chickenfried
Posted on June 1, 2011 at 10:51pmI think I’ll print my own money…
Report Post »microace
Posted on June 1, 2011 at 8:55amWell get ready for $6 gasoline…
Report Post »GOTT-EM-MAUSER
Posted on June 1, 2011 at 11:02pmTry $15.00 a gallon, $6.00 will be the “Good Old Days” sooner than you think.
Report Post »love the kids
Posted on June 1, 2011 at 8:54amOne analyst? Weiss Research has been saying this for over 2 months now. They have said that QE2 is going to end soon and that the govt. will start QE3, against the better judgement of every GOOD analyst. The Govt. and Fed are killing this country.
Report Post »flyboy213
Posted on June 1, 2011 at 8:52amStop with this Stupid money printing for Obummer so he can get more welfare and food stamps trying to get Re elected ,Ain’t gonnie happen !!!!!!
Report Post »windycitywoman
Posted on June 1, 2011 at 8:52amWhat better way to crash our economy, I‘m sure Soros’ will be talking Obama into backing the idea. One World order one currency it‘s coming and our congress won’t stop it.
Report Post »TheOldOne
Posted on June 1, 2011 at 8:51amWhy didn’t I study to be a lawyer instead of a teacher? There has got to be SOMETHING that we can do to stop this government! There is going to be nothing left of us by 2012!!!
What can we do? We don’t vote the bums out until 2012…
Report Post »sdranger
Posted on June 1, 2011 at 9:11amI still stand by my gut feeling that there will be no election in 2012. A crisis of historical significance will happen and cause the cancellation of the election for the safety of the people.
Report Post »TexasCommonSense
Posted on June 1, 2011 at 9:37amsdranger, people will descend on DC with pitchforks, torches, and other such tools, if that happens. I’ll be one of them. There‘s no way we can allow the clowns who pee on our collective leg and tell us it’s raining to remain in power.
Report Post »jhrusky
Posted on June 1, 2011 at 2:07pmAgree totally with SDRanger. I said in 2008 when this nobody from nowhere became popular and got elected out of nowhere … someone/thing is pulling strings and “they” are going to put in whomever “they” want. My belief is that Obama is the last president we will ever have — a large crisis will suspend the election in 2012 OR, he will ‘win’ again in 2012 and then the crisis will happen — either way, he’s the last.
The only way to avert this is for “We the People” to organize and actually do something about all this crap that is happening rather than merely talking about it, and do something FAST. It don’t have to totally fail, but the window of opportunity to fix it is closing on us fast.
Report Post »nomercy63
Posted on June 1, 2011 at 8:49amMaking my money worth less! I somehow don’t think this is a good plan! Run Sarah Run, Criminal investigations for these clowns!
Report Post »Fedup
Posted on June 1, 2011 at 8:47amObama and his administration blamed the oil companies for the increase in gas prices knowing that the clueless and the lazy would believe it. It was, in actuality the printing of dollars by the Fed which devalued the currency thus taking more dollars to buy the same barrel of oil. This is a planned scenario. They are trying to slowly wreck the economy so that they can “save” more businesses and socialize the country. That is also why they give money away to countries like Egypt… we don’t have the money to give but they want to run the debt up as high as they can so that there is no turning back. One of the two places in the country where there is not a housing problem is DC because the federal government keeps hiring more to bloat the government size. This president does not belong in the White House. He belongs in jail.
Report Post »escape_from_socialism
Posted on June 1, 2011 at 11:17amI heard last night on Freedom Watch some bimbo supposedly conservative telling weak dollar have nothing to do with the food prices, only with oil. Really? So the tractors, harvesters and trucks run on water? And main ingredient for fertilizer is natural gas. Listening to idiots like this bimbo make me sick.
Report Post »ofallon
Posted on June 1, 2011 at 8:43amEnough is enough. No more Quantitative Easing Mr. Bernake. The Fed is destroying our country.
Report Post »ares338
Posted on June 1, 2011 at 8:41amOh holy sweet Jesus, the governments here to help!!!! WE ARE DOOMED!
Report Post »heavyduty
Posted on June 1, 2011 at 8:41amObambi knows that his time is short so he is going to weaken the dollar as much as he can before he is kicked out of office. All this money that has been printed already is doing nothing but hurting us. Just goes to show that Democrats have no clue as to how to fix this country.
Report Post »Inlandmar2
Posted on June 1, 2011 at 8:39amThe logic of this course of action is insane. The American dollar is on the road to destruction.
Report Post »GOTT-EM-MAUSER
Posted on June 1, 2011 at 10:56pmActually the last U.S. Dollars, were destroyed a loooong time ago. They were Silver Certificates, replaced by the Fiat Federal Reserve “NOTE” we all mistakenly refer to as DOLLARS these days. Truly as worthless as plastic poker chips, pure illusion, UN-REDEEMABLE for ANYTHING from ANY GOVT. OFFICE, other than another slightly different piece of paper, purported to have “VALUE”.
Only so long as other “SERFS” caught up in the PONZI SCHEME, continue to accept them for their goods, do they have any “Value” at all. That “Value” is dropping daily, as more and more are printed to try and keep the game going.
Never in recorded history, has ANY FIAT CURRENCY SYSTEM ever endured. They have ALL COLLAPSED eventually. BUT, the same folks that have run them for thousands of years, continue to do it over and over again, and greatly profit from it every time. Little wonder, the world is made up largely of FOOLS after all.
Report Post »CornCake
Posted on June 1, 2011 at 8:36amWhy stop with QE 3? Bring on QE 4 and QE 5 and bring on the purposely driven collapse of the US economy! Wake up, America… that is, if it isn’t too late already.
Report Post »psst
Posted on June 1, 2011 at 9:32amUm! It’s toooo late.
Report Post »CornCake
Posted on June 1, 2011 at 9:43am@PSST
I agree, it is too late. It’s been too late for several years now.
Report Post »Swordsmansmith
Posted on June 1, 2011 at 1:50pmYeah Glenn keeps talking about things we can do but I dont see the point the ship is already sinking…
Report Post »GOTT-EM-MAUSER
Posted on June 1, 2011 at 10:35pmWay too late, for Way too long now. The only option left now, is the “RESET” button.
Report Post »John 3:16
Posted on June 1, 2011 at 8:33amGreat let’s kick the CAN down the road, while our supreme leader, Adolf Hibama, is playing golf.
Report Post »m r 2 dux
Posted on June 1, 2011 at 8:33amI think we need to use the same bulldozer to push both the Federal Reserve and the United Nations off into the freakin ocean.
This money will do nothing but buy more democrap votes and further destroy our economy.
Hope and Change! I hope all you communist bastages are happy because your day of judgement is coming—just not as soon as many of us would like!!!
Report Post »Nobamazone
Posted on June 1, 2011 at 8:30amoh sure, that makes sense… lets get more people on food stamps, then reduce them, then increase inflation again, bottom up!
Report Post »Looseli
Posted on June 1, 2011 at 8:24amThis is news? Anyone paying attention saw this one coming. The minute Bernanke said they would stop you knew it was going to occur.
Report Post »liberalsarealiens
Posted on June 1, 2011 at 8:23amMoney in the hands of children! Or maybe it’s the lack of it!
Report Post »Ironeagle
Posted on June 1, 2011 at 8:23amIt’s all unfolding like Glenn said it would. Get and stay ready for tough times–trust God for everything, governement for nothing and gold & silver for everything in between.
Report Post »sbeejustsaying
Posted on June 1, 2011 at 8:20amPeople please go to You Tube and pull up “The Creature From Jekyll Island; A Second Look At The Federal Reserve, by G. Edward Griffin.” watch the longest one.
Report Post »yiska8
Posted on June 1, 2011 at 12:01pmRequested the book, “The Creature From Jekyll Island” through a local college library. They ordered it and once they received it, I tore through it. And it was already on hold when I returned it. The entire City of San Antonio didn’t even have a copy of it. No surprise there. People are beginning to wake up, but it may be too late.
Report Post »13th Imam
Posted on June 1, 2011 at 8:20amMo cash fo the peeps. mo cash fo the peeps. mo food stamps. mo welfare mo cash fo starving illegals , mo cash fo union walkin round money ( gotta by dem votes )
Report Post »tinydd
Posted on June 1, 2011 at 12:01pmBarry’s credit card is full and he still owes the Unions a lot of money, plus keeping all those welfare voters on the liberal teat. Show me the money….SHOW ME THE MONEY!!!
Report Post »Looseli
Posted on June 1, 2011 at 8:18amThis is news? Who didn’t see this coming?
Report Post »GOTT-EM-MAUSER
Posted on June 1, 2011 at 10:17pmYEP, my parents started telling me all this was coming over 50 years ago. Most everybody including me, thought they were a little “OFF”. But damn as the years went by, EVERYTHING they said was going to happen, has. Surely glad I didn’t continue to ignore their warnings, and prepared for it.
BTW, the next step here shortly, is the one where a bushel of Tomatoes is worth more than ALL the SILVER and GOLD a man can carry, in fact it won’t BUY ANYTHING.
Report Post »smithclar3nc3
Posted on June 1, 2011 at 8:17amThey’ll keep putting off the hard choices until it will be too late… welcome to the 21st century Weimar Republic
Report Post »modilly
Posted on June 1, 2011 at 8:27amLooks like they are doing this without the debt limit being raised. Why not? They don’t follow the other laws anyway. What a perfect way to make a profit! Create money out of nothing and get the taxpayers to pay the interest in the form of inflation. We have been so dumb for so long to let these thieves get away with this scheme. Ben Bernanke looks rather sheepish in his statements of late. I think that he knows we are on to him.
Report Post »escape_from_socialism
Posted on June 1, 2011 at 8:34amGive me control of a nation’s money and I care not who makes her laws
Mayer Amschel Rothschild
Report Post »escape_from_socialism
Posted on June 1, 2011 at 8:35amGive me control of a nation’s money and I care not who makes her laws.
Mayer Amschel Rothschild Quotes
Report Post »escape_from_socialism
Posted on June 1, 2011 at 8:36amGive me control of a nation’s money and I care not who makes her laws.
Report Post »nzkiwi
Posted on June 1, 2011 at 8:48am@escape_from_socialism
We heard you the first time. Lol.
Report Post »psst
Posted on June 1, 2011 at 8:50amUm! I heard they are only printing on one side.
Report Post »I’m glad I have a truck. I will fill it full w/ $$ bills, pull a tarp over it and drive down to the corner store to buy a loaf of bread.
I hope the store keeper will accept the load one more time.Last week he told me that was the last time.
He said he could not keep on accepting worthless $$ for things of value.
chazman
Posted on June 1, 2011 at 1:15pmI guess the best we can do is be sure history holds OBAMMY TOTALLY RESPONSIBLE for ruining our economy! I want his legacy DESTROYED! SMEARED WITH MUD! I WANT OBAMMY LITERALLY ABOLISHED! DIRTY, LOUSY Ba$TARD!!!!
Report Post »grandmaof5
Posted on June 1, 2011 at 8:15amThe fact that those words came out of the Federal Reserve and Spooky Dude’s mouth leads me to believe it is, as usual, not in our best interest. They need to quit manipulating markets.
Report Post »penismightier
Posted on June 1, 2011 at 8:18amHere we go again – get ready for inflation.
Report Post »nzkiwi
Posted on June 1, 2011 at 8:34amIt is this simple. Everything is interlocked and you can’t do one thing without affecting everything else.
If you print money to pay your bills when it is not covered by financial growth, then you devalue the currency. So everyone, in effect, pays for the money that has been printed, because their savings and purchasing power have been reduced accordingly. There is a lag, of course, but it is inescapable. An immutable financial law. In an odd sort of way, it is an additional tax, and it is impossible for the average person to avoid.
This will affect everything from the family budget to your children’s education fund. And because New Zealand is affected by what happens in the US, we will feel it, too. But at least those of us who watch what is happening in America get a six to twelve month warning. Well, usually anyway.
Report Post »jnobfan
Posted on June 1, 2011 at 8:35amI thought we were told that they could not do thid again?
Report Post »nzkiwi
Posted on June 1, 2011 at 8:36amI was of the opinion that precious metals might be near the peak. Time to look at them again, as well as shares in companies that are less susceptible to the effects of inflation.
Report Post »Polwatcher
Posted on June 1, 2011 at 8:36amHey, printing money is the same as stealing. Washington politicians are getting money the old fashioned way…by stealing it.
Report Post »TexasCommonSense
Posted on June 1, 2011 at 8:38amAlbert Einstein once said “The definition of insanity is doing the same thing over and over again and expecting different results”.
Report Post »Citizen
Posted on June 1, 2011 at 8:43amAre you ready for the collapse of the dollar ?
The funny thing is no one is going to do anything to stop it and the few who try will be drown out by the complacent.
I feel sorry for those who know better but are shackled to fools.
Report Post »mikem1969
Posted on June 1, 2011 at 8:44amMore inflation, higher prices on all goods from gas to the grocery store. Quit printing more worthless money you freaking morons.
Report Post »cemerius
Posted on June 1, 2011 at 8:46amBenjamin Franklin toilet paper here we come…..
Report Post »Stuck_in_CA
Posted on June 1, 2011 at 8:47amThe intentional destruction of the America we’ve known continues. The global socialist cabal senses blood in the water. They’re goin in for the kill.
Report Post »Dustyluv
Posted on June 1, 2011 at 8:55amGoodie! My silver and gold will be increasing in value! Woo Hoo! Paper money will be as cheap as toilet paper soon…
Report Post »Texas Grasshopper
Posted on June 1, 2011 at 9:00amokay , we all know this is deliberate ( weaking of the dollar ) a few years ago the dollar /peso ration was $1.00 to 100 peso now it is $1to 10 peso . What happens when the gap gets closer ….hmm Canada , America and Mexico with the same value currancy …..geee..havent I heard about a scheme called the NAU ….oh great we can enjoy the same prosperity that the EU has ….er …welll …never mind
Report Post »jackrorabbit
Posted on June 1, 2011 at 9:31amHope you bought your silver and gold before now.
Report Post »smithclar3nc3
Posted on June 1, 2011 at 9:49amThe Constitution says only Congress has the right to coin or print federal currency. The Federal Reserve is outside of the spectrum of Congressional approval thus it’s Unconstitution.
Report Post »vennoye
Posted on June 1, 2011 at 9:51amDevalueing the dollar and creating inflation is just TAXATION by another name!! It hits the poor and middle class harder than the wealthy……..so while the politicans are making big “face time” complaining about taxing the wealthy more, their policies make things worse for the middle class particularly.
Report Post »its_time_to_arrest_our_government
Posted on June 1, 2011 at 10:03amif this isnt a reason to march on dc with ropes and pitchforks i dont know what its going to take to wake the rest of you up. this is theft! its the theft of our money its the theft of our country and the theft of our freedoms. its time we put the whole lot of them in jail. they are printing phoney money buying government bonds and they expect us to pay them back for the phoney money they bought bonds with. this cant go on one more day. if we are to survive as a nation we must put these so called government servants behind bars. ITS TIME FOR US TO ACT OR DIE A SLOW DEATH.
Report Post »101
Posted on June 1, 2011 at 10:11amSilver & gold is the only option, keep buying all you can afford to save!
Report Post »DDD
Posted on June 1, 2011 at 10:22amWe’re there already…get ready for double-dip inflation!
Report Post »escape_from_socialism
Posted on June 1, 2011 at 10:23am“No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.”
The Constitution IS a list of what the federal government is authorized to do, with ALL ELSE being DENIED to it by default. The absense of specific constitutional authorization for anything means that the federal government is denied/prohibited by default.
Amendments 9 & 10 are probably the clearest and most simple explanation of that point:
AMENDMENT IX
RIGHTS RETAINED BY THE PEOPLE
The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.
AMENDMENT X
POWERS RETAINED BY THE STATES AND THE PEOPLE
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
About the money issue:
Article I, Section 8, Clause 5: The Congress shall have Power…To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.
Article I, Section 10, Clause 1: No State shall…coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debt.
So, from that we have:
1. The federal gover
Report Post »Unix
Posted on June 1, 2011 at 10:42amThis will be a mansion soon, because everyone will be living in….TENTS! We are in trouble beyond belief and I’ve been saying this for 3 years, but everyone’s head is in the sand…just wait until the 3rd Quarter earnings season reports the huge LOSSES! The stimulus fraud ends in June, the QE2 fraud ends in June as well, and there is NOTHING anyone can do about it…we are BANKRUPT people, get ready for the darkest age in American history, it‘s a comin’!!! Couple that with the debt ceiling problems, and entitlement, military spending – WAY beyond our means and we are COOKED!! There is no political will to fix it – just maintain the status quo – how STUPID do these politicians and wall street types think we are?? Just wait until the HAVE NOTS have no food in their belly, also the middle class will be wiped out, the rich will become poor as well, this is going to be a major problem for EVERYONE – and hardly anyone is preparing, they just keep their heads in the sand – bunch of ostriches!!! How is that HOAX and CHAINS working out for ya’!!!! I sure hope we can make a go of it, but me thinks it is way too late to fix $55 TRILLION in DEBT in this country and we will lose our status as the ‘Worlds Reserve Currency’. If that happens, you better know how to swim or you will drown!!!!! Throw in European debt woes and civil unrest in the middle east and what we have here is a sorry soup of manure!
Don’t tell me your troubles, I’m just an Operating System
Report Post »Unix
Posted on June 1, 2011 at 10:43amIn a WORD ——- STAGFLATION. In another word ——— BANRUPTSY! In several words – How’s those HOAX and CHAINS working out for ya?
Report Post »Vickie Dhaene
Posted on June 1, 2011 at 10:55amThey are steering us into a Depression.
Report Post »escape_from_socialism
Posted on June 1, 2011 at 11:00amSo, from that we have:
1. The federal government can coin money.
2. States cannot coin money.
3. States have the authority of determining what can be used as a tender in payment of debts by default, because the federal government does not have that specific constitutional authorization.
4. States are then prohibited by the Constitution from making any Thing but gold or silver coin a tender in payment of debts. (Which also additionally proves that #3 is correct.)
In order for the Federal Reserve to be legal, as per the highest law of our land, it MUST be specifically authorized by the Constitution. It is not, therefore IT IS FORBIDDEN BY DEFAULT.
Report Post »kentuckypatriot
Posted on June 1, 2011 at 12:49pmGlenn was right again! He mentioned this about a month ago, if QE3 ever came around, be prepared for hyper inflation. Can’t we demand to our elected bums in office to stop this nonsense? Oh wait, we’re dealing with the regime, nuff said. We’re doomed.
Report Post »saranda
Posted on June 1, 2011 at 1:53pm@texas grasshopper – not to worry. Canada doesn’t want anything to do with our currency. They seem to have stickhandled their way through the past three years. The Canadians I know expect their dollar to continue higher versus ours just like the Aussie $ has.
Report Post »TSUNAMI-22
Posted on June 1, 2011 at 2:18pmIf the gubment can do this, why can’t we the people?
I’ll just counterfeit enough to survive on….I promise.
Report Post »Jediusetheforce
Posted on June 1, 2011 at 3:33pmEnd the Fed!!!!
Report Post »EJ1979
Posted on June 1, 2011 at 5:00pmAll those movies from the past 20 years about DC getting tuned into a plate of glass by Russians or aliens…..hell I watch them now and i find myself rooting for the Russians and aliens.
Report Post »avenger
Posted on June 1, 2011 at 5:20pmthat means gold is going up higher…I have been buying gold by the gram that is packaged in credit card form and is used as currency in 14 countries. http://www.det.goldfromkb.com
Report Post »MiketheTrucker
Posted on June 1, 2011 at 11:30pmThey’re lying!!
QE3 won’t start until August or September. We have funding until August 2nd. But I FULLY expect QE3 to take place at that time.
On the result of QE3 ……… they are telling the truth, and watch out!
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