QE To Infinity

432
Thu, Sep 13, 2012 - 1:23pm

Long-rumored and oft-discussed, QE to infinity is finally a reality.

Here are the Bernank Fedlines from ZH:

*FED TO KEEP POLICY STIMULATIVE FOR `CONSIDERABLE TIME'
*FED WILL ADD TO PURCHASES IF LABOR MARKET DOESN'T IMPROVE
*FED DOES NOT SAY WHEN MBS PURCHASE PROGRAM TO END
*FED TO BUY $40B MBS MONTHLY, CONTINUE `OPERATION TWIST'
*FED TO BUY MBS, EXTENDS ZERO-RATE POLICY INTO 2015

Here's the key take-way: This is it. This is open-ended, QE to infinity.

Note the Fedline: FED WILL ADD TO PURCHASES IF WHEN LABOR MARKET DOESN'T IMPROVE

I also saw a headline on CNBS that stated that Operation Twist will end at the end of the year. Of course it will. As noted a few weeks ago, The Fed is nearly out of short-term paper to exchange for long-term paper. The end of Twist will surge new printing from this $40B number to the full $85B number.

Now note this Fedline: FED DOES NOT SAY WHEN MBS PURCHASE PROGRAM TO END

This is QE to infinity. It has begun and it will not end.

The important thing here is patience. Gold and silver will continue surging higher. There will, undoubtedly, be bouts of profit-taking that will last minutes and sometimes hours. Sometimes maybe even days. But these periods will be brief and ALL DIPS MUST BE BOUGHT.

Maintain and build core positions. Add to your stack at every opportunity. The perennial shorts of paper metal are going to be squeezed with ever-increasing intensity even while the "historic" aspects of this rally have still yet to be realized. Cartel banks will be left with no choice but to systematically cover their positions. They will attempt to do this in an orderly fashion but a rush toward physical ownership will likely disrupt their plans.

Gold and silver will both soon trade at new all-time highs. Again, this will not be a straight line up as there will most certainly be dips and pauses along the way. However, everyone reading this must realize that today is the first day of new paradigm.

We haven't even discussed yet the spiraling situation in the MENA or the strikes in South Africa. Maybe we will later today. For now, though, if I were you, I'd head out to my local coin shop or maybe click the HardAssetsAlliance link on the homepage. If you have to ask yourself "do I have enough physical?", you probably don't. Buy some today. Buy some tomorrow. Buy some more next week. The end of The Great Keynesian Experiment is upon us. Prepare accordingly.

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  432 Comments

twippers
Sep 13, 2012 - 1:24pm

first to infinity?

how great is this day???

onealpha
Sep 13, 2012 - 1:24pm

Let it Ride!!!

I am long and strong all PM.

50Jim
Sep 13, 2012 - 1:24pm

if it stops now

then I would win w/my prediction 1769

silver at 34.70

Sep 13, 2012 - 1:26pm

And if you have profited from

And if you have profited from 26 to 35, I do gladly accept honoraria.

AC_Doctor
Sep 13, 2012 - 1:28pm

Binky Ben comments to send AU through $35.00

When Binky Ben speaks (lies and misinformation spews out of his crooked mouth) I hope it sends the algos crazy and AU blows through $35.00!

kn33bar
Sep 13, 2012 - 1:28pm

Thanks Turd

For helping me protect my family and all that will listen from the inflation and other things that are coming.

ivars
Sep 13, 2012 - 1:29pm

Here we go. No pullbacks to

Here we go. No pullbacks to get in. Now, 2 nice days. Added 1000 Oz XAG at 34,22.

¤
Sep 13, 2012 - 1:30pm

$1800 & $35

If it wasn't for that engineered headfake we'd have surpassed those levels already. We're approaching them quickly. :-)

tyberious
Sep 13, 2012 - 1:30pm

I have

Never been more afraid than today! During the accumulation of all my prep work, I though there was a 90% chance that I would not have to use it. WE have truly walked over to the abyss!

Lord Help Us All!

Sep 13, 2012 - 1:32pm

from ZH

https://www.zerohedge.com/news/bernanke-unleashes-path-new-all-time-highs-precious-metals

And sorry about the intermittent server problems. We have had some very nice spikes to 1000+ users. Seems to be working better now, though.

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