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Zero Recovery Silver
The fake recovery continues. Another 54 Billion borrowed in 2 days!!! 1/12/11 update
Failing Of Quantitative Easing Doesn't Preclude One More Try
A persistently moribund economy has led Ben Bernanke to suggest the Federal Reserve will resume quantitative easing, a policy known as QE2. Bernanke's hints alone that the Fed will make more Treasury purchases to infuse the economic system with cash have had an effect. Since late summer, the dollar has fallen, stocks have risen, and oil, gold, silver, corn and other commodities have risen in price. Nevertheless, joblessness remains stubbornly unaffected, an issue that Bernanke said could be lessened somewhat with QE2.
Bernanke: QE2 will prevent deflation
Having lowered rates of interest to nearly zero, quantitative easing is only arrow left within the Fed's quiver to battle high unemployment. Bernanke made a speech Friday in Boston where he said that a debilitating cycle of deflation could possibly be begun by the joblessness which continues. CNNMoney.com reports that rather than focus on the Fed's traditional mission to limit inflation, Bernanke said it was time to seriously think about that inflation is too low. Pumping more cash into the economic system is a good thing then, called quantitative easing. This will make the economic system have more money. The Fed now owns $2 trillion in assets. Since 2008, this has had no effect although that is what the Fed has been doing.
The economy is changing with the idea of a QE2
Investors expect the Fed to announce QE2 at its Nov. 2-3 meeting. The chance of the QE2 order happening has made the economy change, reports the Associated Press. Bernanke started it by hinting this was the plan. Oil went up 10 percent in price. Americans are paying $400 million more a week for gas. Gold has risen 11 percent to $1,377.60. Corn futures are up more than 30 percent. The average rate of interest on a 30-year fixed mortgage has fallen to 4.19 percent, the lowest since the 1950s. Then there had been the change in the average rate of interest paid on a one-year certificate of deposit. There had been a .55 percent fall. Unemployment is still bad. Double digits are practically being reached.
Why we will not see WE2 for long
Bernanke explained the QE2 had to help the economic system while he had been in Boston. In theory, the combination of a weaker dollar and low interest rates would boost spending, boost corporate revenue, create positions and drive down unemployment. Kevin Giddis of Morgan Keegan, told CNNMoney.com that more quantitative easing won't work, because it hasn't yet. "I don't think getting securities is going to pull the economy out of a ditch," he explained evidently. "The industry is not getting it. We've made money accessible freely for a when now. The Fed has to start thinking way outside the box. This isn't a war where conventional weapons can be used."
Citations
CNN Money
money.cnn.com/2010/10/15/news/economy/bernanke_speech/?npt=NP1
Associated Press
google.com/hostednews/ap/article/ALeqM5hJprdjYORlZxJiFlMznIOBO7fs4A?docId=afebcea0bbfd4992bc5c4f9b46886f7c
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Frequently Asked Questions...
How many of you realize Obama's incompetent economic policy is about to cause a hyperinflating depression?
We've had zero economic recovery at the cost of trillions of dollars.
And here are the commodities price rises in September:
Soybeans Up 9.5% in September.
Copper 10% in September.
Rice 10% in September.
Oil 11% in September.
Corn 12% in September.
Silver 13% in September.
Orange Juice 13% in September.
Cotton 17.5% in September.
Sugar 19.3% in September.
@Josh
Ok, how bout this, that box of orange juice in my fridge rose more in value then the Dow Jones did in September. Does that fit your contextualized paragraphy? rofl.
Answer:
The 2nd Great Depression is here and now. Those who don't believe it will also not be prepared for it. Tough luck...all the signs are clear.




















































































