The Truth About QE

The central banks have now created a system which is totally dependent on ever-more credit and QE. So there is nothing that can stop them from printing money. On the contrary, they will need to print a lot more. Instead of central banks printing $2 trillion each year, it will soon be $10 trillion, and eventually a lot more. - Egon von Greyerz, King World News interview.
 
With no meaningful Government and industry association economic reports due out today, the Federal Reserve good cop/bad cop comedy routine will be in full force today. Three regional Federal Reserve Bank presidents will be out today making their empty rhetorical speeches either in favor or against reducing QE. But all three represent nothing more than a modified Abbot and Costello slap-stick comedy routine.

The quote above represents the truth about QE. It reflects my view ever since Bernanke first uttered the word "taper" in May.  That is, I said all along that the Fed has been using QE to keep the big banks solvent and the tracks in the snow leading to this conclusion are in there for anybody to examine using the St. Louis Fed data system. I connected the dots last week for everyone here:  There Will Be No Taper

The other tell-tale is in the trading action of the U.S. dollar, in which the dollar looks like it has contracted that nasty new HIV strain that is resilient to treatment. I'll have more to say on this sometime this week. In the meantime, get yourself some snacks and pull up a comfortable chair so you can fully enjoy watching Bullard, Lacker and Fisher sling the bullshit around in one humorous scatological production orchestrated by the most corrupt banking system in history.  Oh ya, if the brown stuff flying over the airwaves happens to cause a temporary drop in the Comex-driven paper price of gold, use that as an opportunity to add to your precious metals positions.