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

Founder
turd [at] tfmetalsreport [dot] com ()

  432 Comments

Be Prepared
Sep 13, 2012 - 3:21pm
Sep 13, 2012 - 3:22pm

By the way...

Today would be an excellent time to spend some of that hard-earned fiat on a subscription to TTM. Don't ya think??

https://www.turdtalksmetals.com

Shnozberries
Sep 13, 2012 - 3:25pm

clarification?

I'm confused between "The important thing is patience." and "if I were you, I'd head out to my local coin shop". I never like buying on momentum, but is this the day to throw that out the window?

Be Prepared
Sep 13, 2012 - 3:26pm
Au812
Sep 13, 2012 - 3:29pm

happy days

jobs for everyone !!!

thedukes
Sep 13, 2012 - 3:29pm

From Santa

September 13, 2012, at 1:17 pm by Jim Sinclair in the category In The News | Print This Post | Email This Post

My Dear Friends,

It looks like Gold hit $1764 for the 3rd time.

Gold is usually 3 hits and out.

Regards,
Jim

Straying From the Flock
Sep 13, 2012 - 3:29pm

How long now?

Will it take for the American people to start asking questions like:

"Why do I need to pay my taxes when the Fed is printing an infinite amount of money?"

145Bluesman
Sep 13, 2012 - 3:29pm

@ Johny Dow

I've got some road kill crow for you to eat.

Or maybe you would prefer a pair of my screech marked dirty shorts.

Let me know, I will fed ex them to you for suppertime.

Fritz
Sep 13, 2012 - 3:32pm

smush

the smash has now been smushed. Turd is right . . . buy each dip.

Gramps
Sep 13, 2012 - 3:33pm

To all the cheerleaders here

<edited by Turd>

This is not a day to celebrate our pm's rising. This is a sad day. I make good money and I am starting to feel the pinch. There are a lot of poor people in the world that are going to be suffering badly from this. Arab spring wasn't sht compared to the shtstorm that is coming. This is a sad day.

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