The Long Wave Versus the Printing Press: Another 2008?

http://dollarcollapse.com/long-wave/the-long-wave-versus-the-printing-press-another-2008/

Ben Bernanke's QE Printing Press

The Bernanke's keyboard:

Ctrl-P

The Long Wave Versus the Printing Press: Central Banks Go All-In

http://dollarcollapse.com/long-wave/the-long-wave-versus-the-printing-press-central-banks-go-all-in/

Fed warming up the printing presses?

http://www.thedailycrux.com/content/5998/Inflation/eml

Federal Reserve Governor Fisher warns against Federal Reserve

http://www.zerohedge.com/article/federal-reserve-warns-about-dangers-federal-reserve

A not very long time ago, in a galaxy known as the Milky Way, the member of an occult group of sinister individuals warned that should this group ever get to a point where it believed it could fix fiscal problems through printing money, this would present "a paramount risk to the long-term welfare of the U.S. economy." The group is better known as the Federal Reserve and the individual was Dallas Fed president Richard Fisher. The same Richard Fisher, who recently wrote about the FinReg unaddressed concept of how Too Big To Fail will lead to another massive systemic crash, went as far as saying that "even the perception that the Fed is pursuing a cheap-money strategy to accommodate fiscal burdens" would be disastrous, and that "the Federal Reserve will never let this happen. It is not an option. Ever. Period."

With observations such as that "we know from centuries of evidence in countless economies, from ancient Rome to today’s Zimbabwe, that running the printing press to pay off today’s bills leads to much worse problems later on", one may only hope that all those who advocate even more rampant spending and irresponsible money printing to "fix" the economy, will finally see the light. Alas, mired in their own stupidity, they won't. And Fisher's words, so prescient in 2008, yet so ignored, will suffer the same fate today, and the Fed will continue on its way to singlehandedly destroying this once great country.

More money printing in the UK a virtual certainty

In central banker parlance, "quantitative easing" means printing more currency in an attempt to stimulate a moribund economy. As many of us predicted, rhetoric of "exit strategies" on stimulus programs are shallow. Expect the US to continue their printing presses as well.

http://www.nytimes.com/reuters/2010/02/23/business/business-uk-britain-bank-qe.html?_r=2

Borrow and print

Short term noise often tends to obscure the longer term realities and the fact is that the US is now firmly on the path to financial decline unless an abrupt, about face occurs in regards to our economic and fiscal policies. I have said it before and will say it again; if all that was necessary to produce lasting prosperity was to ramp up the printing presses and borrow like a banshee, nations of the past would have figured it out long before we did and would have successfully implemented it. That those nations that have attempted to do so are now in the ashbin of history or learned enough to avoid doing so again, is proof enough that it is a foolish, irresponsible and destructive path to take.

- Dan Norcini, December 29, 2009

The latest outsourcing business to hit the US...

The US Treasury is busy printing so many US Dollars that they have outsourced it to printers in Switzerland. That's right--our government is so intent on printing trillions of dollars that they are wearing out their printing presses, and have had to resort to offshoring the printing process. Hence, the ultimate conundrum: "Helicopter" Bern Bernanke and fellow cohort Hank "Machine Gun" Paulson have repeatedly preached about a strong US Dollar. Yet, their actions for months have been completely undermining the strength of our currency.

This indiscriminate and unconscionable monetary easing dwarfs any on record--it is essentially criminal.

Meanwhile, my long gold and long yen positions are playing out as predicted, so my portfolio is profiting handsomely. But it is bittersweet, as we will experience the second act of post-1990 Japan. Japan's Nikkei stock market index stood at 39,000 in 1990. In 2008, it stands at 9,000.

The next bubble to burst are Treasury Bonds. The 30-year maturities are yielding 2.6%. Investors by the droves are basically saying, "Mr. U.S. Government, I know your currency is tanking by the day, I know you are printing dollars like there is no tomorrow, I know your solvency is at risk, I know your balance sheet is deteriorating with trillions of debt, and I know you have to chase good money after bad money (the bailout mantra), and yeah, I know you've been beaten down. But can you please hold on to my money for 30 years, and pay me 2.6%, for the privilege?"

Once investors wake up to the reality that their allegedly "safe" investments aren't so credit-worthy anymore, they will demand higher rates of return in exchange for taking on the additional risk. And when that happens, the Treasury Bond bubble will burst, just like the residential sub-prime mortgage bubble burst. The Fed eased too much, creating a real estate bubble after the tech bubble burst. They then raised rates 17 times, bursting the real estate market. Now they are easing rates to 0%, creating another bubble--this time US Treasuries.

Is anybody seeing a pattern here?