Thursday, December 2, 2010

Words Fail Me

Sometimes, there just are no words.  Like when a member of the board of the Federal Reserve says more Quantitative Easing (QE3) may be required.  Thanks to Zero Hedge again, who is really on a roll. 
"If the economy grows more quickly than I currently anticipate, the purchase program will need to be reconsidered and perhaps curtailed before the full $600 billion in purchases is completed. On the other hand, if serious risks of deflation or deflationary expectations emerge, then we would need to consider whether expanded asset purchases should be used to address these risks."  (Charles Plosser, president of the Philadelphia Federal Reserve Bank).
I note the Chinese haven't gone insane.  Bloomberg reports their gold imports soared as they dump dollars and turn them into something with value.  They clearly see that the Fed intends to destroy the dollar. 
China’s gold imports jumped almost fivefold in the first 10 months from the entire amount shipped in last year as concern about rising inflation increased its appeal as a store of value, said the Shanghai Gold Exchange.(emphasis added -GB)

Got gold and silver?  If the Chinese government is getting rid of our dollars, buying fewer bonds, and buying hard commodities, does that tell you anything? 

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