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Thursday, December 22, 2011

Economic Collapse: Watch Out For QE3

QE3 is of course Quantitative Easing Round Three, where more fiat currency is printed further devaluing the current paper money in circulation and necessarily causing prices to inflate because the dollar is worth less. Once QE3 is announced or actually executed,.....expect the latter since the Government and the Fed have taken secrecy from the people to new heights,....precious metals will go up, particularly Gold.

In fact, when the major central banks launched a joint action to provide emergency U.S. dollar loans to banks in Europe, which put more money (not backed by anything but some politician's word) there became a rush to buy equities and commodities that would survive inflation and Gold rose $30 an ounce.

As 2011 ends, the four FED governors will be replaced and most analysts figure that the next four will be much more liberal in their monetary policies. QE3 will probably be snuck in, money created from air, without much publicity; and the present incredible low interest rates will climb as the dollar devalues. This will incite the $16.4 trillion Federal Debt to explode and the U.S. will be all probability start the slide to become like Greece. So the smart people are buying precious metals ahead of the very probable QE3.

It shouldn't end there for Survivalist. Everything will go up in price,... excepting your pay checks. The smart idea is to procure now what you can, because as the interest rates rise, the beginning of the dollar collapse begins. Scary times my friends. They will likely become much more scary in early 2012.

I am not advocating going into debt to purchase vehicles or property at the current low interest rates, although I know a couple people who are rationalizing that they would rather have new, reliable vehicles for a Bug Out
than to try and procure one when the interest rates are higher and the dollar buys less.  I'm not going to do that.  I'll continue on the same rate, maybe just step it up a notch, on procuring long stay food items and perhaps more Silver. 

2012 is going to be ugly.  Be prepared.

5 comments:

  1. Wish we were back on the gold standard. A co-worker and I were discussing how technically, a loaf of bread is still 5 cents. On the gold standard that is. Whats a silver nickel worth? $2-$3 dollars? IMO think backing our dollar with something real such as gold or even silver would make more sense. More sense than printing monopoly money thats backed by nothing.

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  2. Here! Here! What Jairo said. Unfortunately, you can wish in one hand, you-know-what in the other, and see which gets filled first. All the wishing in the world won't put us back on the Gold Standard, or put sense in politician's heads. So take Urban Man's advice and get prepared/keep up your preparing. It is foolishness to do otherwise.

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  3. Gold, like the dollar is a fiat currency in it's own right. It all falls back to a barter system based on 'here, let's just say this is worth so much...'

    What we need to institute (quickly to avoid a collapse of capitalism, or as a replacement after capitalism fails) is a Participatory Economy. In ParEcon, you're paid in 'Credits' per hours you work. Money is created by your work, not profits.

    The best part is, in a ParEcon there are no taxes or interest paid on loans, and the currency is unlimited. One person doesn't have to lose a dollar for you to gain one, and the only limit on the economy is the availability of resources to manufacture, and the labor to do it.

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