James Turk: They are printing too much money

Posted: September 21, 2010 in Current Events, Federal Reserve, Gold, Precious Metals, Silver

There’s been no change, but the Fed has clearly opened the door for more QE.

This is the key paragraph:

The Committee will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate.

You can find the full announcement here

So what does this mean?  It means more of the same.  In the article below James Turk argues the Fed is already printing too much money.  James Turk argues commodities are rising at what would be an annual rate of 62 percent.  This should be simple for all of us to predict what will happen.  What we need ie. food, commodities, energy will continue to go up.  What we want ie. electronics, cars, houses, etc will go down. 

The difference between what will happen in the near future and what happened in 1979 & 1980 is Bernanke has no balls.  Let me explain, in order for Volker to tame inflation in 1979 & 1980, he needed to eventually raise the fed fund rate to 19 percent.  There is no way on gods green earth Bernanke has the stones to raise the fed fund rate.  This would collapse the economy but at least we would have the opportunity to rebuild.  The next collapse will be much worse with the feds current actions. 

The currency crisis is closer today than it was yesterday.  Buy gold & silver.

Turks Article Here

Goldman Dissects The Fed\’s Statement, Expects QE2 Announcement On Midterm Election Day Article Here


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