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“QE-3 To The Moon, Alice!”

November 30, 2011 Market Updates, Predictions 1 Comment

“QE-3 to the moon, Alice!” should be the headline of the day today, but in all likely hood, it will never grace a front page or make the evening news. The reality of what happened today is world changing. The powers that be have acknowledged that the Euro is doomed and that Germany is not strong enough, in its own right, to save the European Union. The new world order requires all of the players, including the U.S., to kick the can blindly down the road so that a new global power can miraculously wipe away the excesses of the nation states of the world. This is the first day of the beginning of a new financial global government. “QE-3 to the moon, Alice!”

The coordinated central bank moves today by the U.S. Federal Reserve, the Bank of Japan,the European Central Bank, the Swiss National Bank and the Bank of Canada put the world on notice that the printing presses will not stop until the European Union debt crisis is under control. This buys the new world financial order time to organize the demise of any free countries that are left by eliminating their freedom by taking on their debt.

Debt will do to the world what two world wars could not, namely, change the world as we know it and give the power to the “bad guys.”

What the central banks have done, with the help of China, is to delay the day of reckoning and in no way helped to solve the world’s debt problems. China, today, for the first time in three years, eased its reserve requirements by .50 basis points. China wants to keep growing and it is willing to play along to keep that growth going forward, because it knows that if Europe and the U.S. go under, they get stuck with a lot of valueless paper.

This is what the Fed said today as they announced QE-3! (That is not what they called it, but that is exactly what it is!) “The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and to help foster economic activity.” Let me translate, they are more than willing to trash the dollar to avoid being responsible for the economic implosion that they permitted to happen!

“Attention passengers on U.S. Dollar Airlines, bend over, grab your ankles and watch your dollars become worthless. Please note that we had absolutely nothing to do with the rough landing that you are about to experience!”

Gold, general equities and gold stocks took off, and why not? Gold sees massive inflation coming as do the gold stocks, while the general equities see the liquidity spigot being turned on full flow.

The DOW finished the day at 12,045.68, up 490.05, spot gold closed at $1,747.50, up $31.50, while silver closed at $32.90, up .95. Aren’t you glad you sold your gold and gold stocks two weeks ago when the bull run in gold, according to the financial media, officially ended?

Stay the course, you ain’t seen nothing yet! “QE-3 to the moon, Alice!”

Till next time, good luck and good trading!