Wednesday, November 3, 2010

Pushing on a String: Fed Fires $600 Billion Stimulus Shot .

The 'debt' based economy is still the satus quo that is being protected. --receiptents of fixed incomes and savers be damned!

So here we have another round of QE (there will be more!)  $600 Billion more should buy some more time.

http://online.wsj.com/article/SB10001424052748703506904575592471354774194.html?mod=WSJ_hp_LEADNewsCollection

As long as the medicine of QE continues asset prices may inflate but look at this chart which shows the current rally in stocks (S&P index) quoted in Oz of Gold


There is a certain point of no return, where you get little return for the increase in debt; Saturation point;

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