The dollar is showing signs of weakness, in spite of the unrest in the Middle East. This is a grave departure from the way that things used to be. It is no longer the currency people around the world turn to when things get iffy. One of the Federal Reserves most conservative members, Tom Hoenig, just floated the news that the Fed would consider another round of Quantitative Easing if economic numbers continue to disappoint. The Federal govt. itself loves quantitative easing for two reasons. It is a way to tax everyone's savings without overtly tapping their accounts, thereby funding government with a stealth tax. The other way it helps fund government is it creates asset inflation, which allows the government to tax the inflation on asset prices overtly.
Along with the unrest in the Middle East, we have Afghan's bank tottering due to 900 Million in losses. The whole region is starting to look like a pot boiling over notwithstanding our intervention. We will be wishing soon that we had been allowed by the liberal progressives to develop our own energy resources. And wishing that the"conservative” progressives had not channeled our energy investment into ethanol instead of wherever the market would have taken it.
Here Comes QE3: Hoenig Says "More Quantitatve Easing May Be Discussed" | zero hedge: www.zerohedge.com/article/here-comes-qe3-hoenig-sa...ussed
http://chum.ly/n/655150
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment