Why QE Will Never End
Regardless of the MOPE and the SPIN, QE can never end.
Thanks to the good Tylers at ZH for this very simple explanation. PLEASE TAKE THE TIME TO READ THE LINK BELOW AND PLAY WITH THE SPREADSHEET PROVIDED.
Again, for fiscal 2011, the interest on the U.S. national debt was $454B. http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
This is at an average coupon of around 3% and an average maturity of under 5 years. So, with a funding cost of 3%, the interest on the national debt was roughly 1/3 of the 2012 deficit. Aha, but what would the funding cost be if rates were 6% instead? The interest on the debt would have been $900B and the total deficit would have approached $2T!
AND THIS IS WHY QE∞ EXISTS AND WHY IT WILL NEVER END. PERIOD. END OF STORY.
Please, I beg you, do not fall for the misinformation promulgated last week in the mainstream media. QE will not be ending in 2013. It will not be ending in 2014 and it will not be ending in 2015. It can't and it won't. The only option for the Fed and TPTB is to "extend and pretend". Extend the Great Ponzi as long as possible by pretending that there is adequate demand for treasuries to keep rates low. You must understand this!
This process involves rampant and illicit fiat money creation, which devalues the dollar and makes all of your savings worth less and less each day. Your only protection from this madness is the physical possession of precious metal. Please use this current and any future price weakness to add to your stockpile.