And so, QE3 has been announced officially. $40billion a month. Doesn't mean much though. Those who have done their research knows that the Fed has been printing all this while, regardless of whether they announce QE3 or not.
Back in 2010 I posted about how QE2 was another nail in their coffin. I don't know how many more nails need to go into securing the coffin, but I guess it won't be long now. QE3 is open-ended, meaning it will last till as and when the Fed pleases. They have also announced that they will keep rates low till 2015. This can only be done by money-printing. I await 2013 and 2014 with anticipation. The US has to repay tons of debt in the coming months. I wonder how they are going to do that.
Less than 3 weeks ago, I started longing gold on forex, in anticipation of this announcement. I don't like to do short-term trading, but I might as well do it since the price is going up. Although traders will say that the market has 'priced in' this announcement in the weeks leading up to today, I doubt that they 'priced in' the fact that the Fed will keep on printing indefinitely. I think we will see more traders coming into the gold market again because they did not anticipate that QE3 will be 'open-ended'.
While some of us are having fun here, this is very sad news for the US citizens. The Fed's actions over the past few decades have destroyed the saving class. As always in history, this is how an empire ends.
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