QE Infinity: Apple, Bonds, Dollar, Gold, Google, Oil, Real Estate...
David Dyer | Oct 15, 2012 03:49AM ET
Relax and enjoy the ride. Kamikaze Ben (Bernanke) is your pilot on this epic American journey. September 13, 2012 was the American Day of Infamy and the death knell of the American Dream. The Federal Reserve announced indefinite quantitative easing, QEternity, plus a zero-interest rate environment extended through mid-2015. Granny’s savings account is toast as the Federal Reserve buys up mortgages and drives down interest rates.
Quantitative easing is an addictive drug. Is the current injection enough? No, it doesn’t appear that it is. Already there is talk of more QE. Would this be QE Infinity 2.0? How long can this addiction continue? The answer is as long as the U.S. Dollar is the world’s reserve currency -or- the Great American Sovereign Debt Default occurs. As long as the Federal Reserve keeps interest rates down, the Ponzi scheme can continue.
An economic globalization, approved by the USA 2-party political dictatorship and funded by the Wall Street Banksters, precludes a sound internal USA economic policy and structure. Yet we continue voting for the same empty promises offered by both the Republicans and Democrats over and over as if this next time will be different. Folks, this is Coke versus Pepsi – changeless change. The overall agenda does not change and the song remains the same. Albert Einstein called this insanity: “doing the same thing over and over again and expecting different results.”
QE Infinity Performance To-Date
Bonds +1.61%, Gold +1.27%, Silver +0.75%, Bonds +0.56%, Homebuilders +0.26%, Dollar +0.05%, Real Estate -0.36%, Stocks -0.55%
The world, and therefore the economic structure itself, has fundamentally changed with cheap human labor outsourced abroad (suicide nets and police state control expenses paid for by the slaves via subsistence pay) and rapidly expanding automation (rise of the machines) implemented domestically. The downward spiral from higher paying production jobs to lower paying service jobs to ultimate obsolescence continues for Americans and humanity in general.
Therefore, the Federal Reserve will flood the world with U.S. dollars, Congress will run budget deficits and borrow more money, interest rates will remain artificially low lest the insolvency of America be revealed by skyrocketing debt service, and the Fed will continue expanding the central bank balance sheet until their bluff is called. Follow along with the Fed Hail Mary, indefinite quantitative easing, as I periodically monitor the value of selected assets in the new QE Infinity Economy.
Get The News You Want
If Google (+7.80%), Oil (-5.45%), and Apple (-5.98%) are included, the perspective changes:
Beginning market values are as of the close on September 12, 2012, the day before QE Infinity was announced. Ending market values are for the most recent week ended on Friday. Therefore this provides a snapshot of value. All prior and expected financial performance and position has been priced into these publicly traded stocks, along with any other financial system, economic, and political uncertainties to-date.
The assets reviewed are Bonds (BND and BOND), Dollar (USDX), Gold (GLD), Homebuilders (ITB), Real Estate (IYR), Silver (SLV) and Stocks ($SPX). Google (GOOG), Apple (AAPL), and Oil (CL_F) are included as asides this week.
Disclosure: I have a beneficial interest in a long position in AAPL stock. Periodically, I may have short-term (intraday or intraweek) long or short positions in other investments discussed in this post.
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