Jim Rickards: Stealth QE, Perpectual Motion QE Machine
Jim Rickards: Stealth Quantitative Easing Next?
Jim Rickards, in a recent interview with Eric King of KWN, discusses the possibility of “Stealth QE” after June 2011, impact of the war in Libya and the Japan earthquake on oil and the economy, where he sees gold and silver going, and more.
On the Fed’s announcement that Bernanke will be holding quarterly press conferences to explain monetary policy decisions, Rickards said that it will decrease instead of increase the Fed’s transparency as it will be another form of propaganda used to stage manage expectations.
His first question to Bernanke would be “What are you doing in the gold market?”
Listen to the full interview here:
Listen to the previous interview (Published on March 12, 2011). Here, Rickards explains the concept of “perpetual QE” or “Perpectual Motion QE Machine” where the Fed is able to continue QE without having to further expand their balance sheet beyond June.
Knowing and anticipating this in advance is critical for PMs holders. The dollar value of PMs may be momentarily hammered down if come June, the Fed announced that there will be no QE3. As explained by Rickards, and as proven by precedent (see below), they may go in to Stealth QE, which does not change the fundamentals of PMs one bit. Any dip will be temporary and a great opportunity for anyone who does not yet own any PMs. Then again, this may not be the case considering the effects of the recent war in Libya and the Japan catastrophe.
To help support the economic recovery in a context of price stability, the Committee will keep constant the Federal Reserve’s holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities. The Committee will continue to roll over the Federal Reserve’s holdings of Treasury securities as they mature.
The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability.
Source [The Federal Reserve Monetary Report to Congress: Monetary Policy over the Second Half of 2010 and Early 2011]
Leave a Reply Cancel reply
The Race to Debase
Monitoring the Currency Wars
08 Feb Venezuala devalues Bolívars by 46%.
03 May China Brings Bitcoin to Its Populace. A new front in currency war?
04 Apr The BOJ unleashed the world’s most intense burst of monetary stimulus
01 Apr Currency auction puts Venezuela through new devaluation
02 Mar China is “fully prepared” for a currency war should one happen
20 Feb NZ$ falls on intervention comments
03 Feb Falling yen set to spark renewed currency wars
Currency Wars Simulation
21Mar: Societe Generale
Gold below $1,400 by end 2013
18Mar: Larry Edelson (Money&Markets)
Gold below $1,500, Silver below $20 "soon"
27Feb: Jim Sinclair (JSMineSet)
Current price correction ends by 27March
27Feb: Jim Sinclair (JSMineSet)
Gold will climb to $3500 & beyond
16Oct: Jeff Clark (Casey Research)
$2,300 gold by January 2014
05Sep: Bill Murphy (GATA)
$50 silver by year end
13Aug: James Turk (GoldMoney)
We won’t see $1580 gold & $27 silver again
12Aug: Bill Murphy's source
We could see a 100% increase in 90 days.
03Aug: HSBC Analysts
Gold to rally above $1,900 by end 2012
>> More forecasts & forecast accuracy
Peter Schiff: Watch to check out his understanding of Bitcoin
- Maguire - This Key Level To Trigger Huge Central Bank Buying May 18, 2013
- Art Cashin - Money Supply Going Parabolic, Gold & Inflation May 18, 2013
- Maguire - Bullion Banks Are About To Exploit Gold & Silver May 18, 2013
- Art Cashin - Shorts Being Squeezed & Market May Go Parabolic May 17, 2013
- Coming Collapse, Massive Global Debt & The Bernanke Fed May 17, 2013
- Maguire - Physical Demand Shows Gold In Massive Bull Market May 17, 2013
- Five Incredibly Important Gold & US Dollar Charts May 17, 2013
- Premiums Soaring As Massive Run On Gold & Silver Continues May 16, 2013
- It’s Official: Gold Is Now The Most Hated Asset Class May 19, 2013 Tyler Durden
- What Did Obama Know About The IRS (And When)? May 19, 2013 Tyler Durden
- The Bermuda Triangle Of Economics May 18, 2013 Tyler Durden
- Visualizing The Silver Squeeze May 18, 2013 Tyler Durden
- Guest Post: Why Bonds Aren't Dead & The Dollar Will Get Weaker May 18, 2013 Tyler Durden
- The Quiet Triumph Of Oil And Gas In Obama’s Policies May 18, 2013 testosteronepit
- Class of 2013: The Most Indebted Ever May 18, 2013 Tyler Durden
- "Boldly They Rode And Well", Or Why Japan Is Not America May 18, 2013 Tyler Durden