Warning: Gold may plummit for reverse QE

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#1 Sat, Aug 27, 2011 - 9:02pm
Snellville, GA
Joined: Aug 20, 2011

Warning: Gold may plummit for reverse QE

I'd like to point everyone to https://www.zerohedge.com/news/guest-post-bernanke-box.

It seems the reason that QE3 was hinted at but not delivered friday is that the treasury market has dried up from all of the previous QE. The only buyers left are the primary dealers, which means that another round of QE would be hyperinflationary immediately.

Now, based on the reverse repo market activity of late, it seems that bernanke is trying to buy time so that he can perform enough reverse QE by the sept FOMC before another round even becomes possible.

Mind you this is only speculation, but my guess is that the EE will put the long squeeze on gold next week and try to deliver as much news as possible in order to loosen the noose on the banking market. They'll use the market sentiment to sneak through their reverse repo program, which will allow them to announce QE3 on the 20th. If they don't, they know they're finished, because the market won't survive without it.

I don't know that they'll be successful, but that certainly won't stop them from trying.

Edited by: Aeonios on Nov 8, 2014 - 5:31am
Sat, Aug 27, 2011 - 10:29pm
Dr Durden
Twin Cities, MN
Joined: Jun 14, 2011

Huge gold sale? Christmas in

Huge gold sale? Christmas in September? Praise Jesus! yes

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