Three Reasons the Fed Announced QE 4

December 18, 2012 http://gainspainscapital.com

 

http://albertpeia.com/whycontraindicatedqe4.htm

‘Do you find the Fed’s announcement of QE 4 confusing? After all, why would the Fed engage in more QE when it just announced QE 3 three months ago? In this excerpt from my latest issue of Private Wealth Advisory I outline the real reasons the Fed announced more QE (virtually no one I’ve spoken to understands this).

I also explain which investments will profit from this monetary madness and how to best go about preparing for 2013.

To find out more about Private Wealth Advisory as well as its incredible track record (76 of out last 92 trades made money)…

Click Here Now!!!

Last week the US Federal Reserve surprised yet again by announcing QE 4: a program through which it would purchase $45 billion of US Treasuries every month.

Between this program and the Fed’s QE 3 Program announced in September, the Fed will be monetizing $85 billion worth of assets every month ($40 billion worth of Treasuries and $45 billion worth of Mortgage Backed Securities) ad infinitum.

Indeed, the Fed’s new policies are anchored to its goal of getting employment down to 6.5%. This means the Fed will buy these assets non-stop until employment gets down to 6.5%.

I’ve spoken to a number of people in the financial community as well as outside investors and no one seem to grasp the significance of this announcement.

First and foremost, QE does not create jobs. The UK has announced QE efforts equal to an amount greater than 20% of its GDP and has not seen any meaningful job growth. Similarly, Japan has announced nine rounds of QE for a combined effort equal to 20% of its GDP over the last 20 years and job growth remains dismal there.

Based on this, the Fed’s decision to anchor its QE efforts to employment is a bit hard to swallow. Indeed, I would argue that the Fed’s moves have very little to do with employment and instead are meant to address the following.

  1. The US economy is nose-diving again and the Fed is acting preemptively.
  2. The Fed is trying to provide increased liquidity going into the fiscal cliff.
  3. The Fed is funding the US’s Government massive deficits.

To continue reading this you need to take out a trial subscription to Private Wealth Advisory: my bi-weekly investment  newsletter designed specifically to help individual investors cut through the noise and profit from the market’s gyrations.

Indeed, 76 out of our last 92 trades have made money for Private Wealth Advisory subscribers. That’s an incredible 82% success rate on our investments.

And we’re not getting complacent by any means. In fact, I’m about to alert Private Wealth Advisory subscribers to several trades that will all produce HUGE profits when the US debt implosion picks up steam in the coming weeks.

You’ll find out what they are the minute you subscribe to Private Wealth Advisory. You’ll also gain immediate access to my Protect Your Family, Protect Your Savings, and Protect Your Portfolio Special Reports outlining how to prepare these areas of your life for the coming Great Crisis.

These reports outline:

1) how to prepare for bank holidays
2) which banks to avoid
3) how much bullion to own
4) how much cash is needed to get through systemic crises
5) how much food to stockpile, what kind to get, and where to get it

And more…

To take out an annual subscription to Private Wealth Advisory  now… start profiting from the market’s gyrations (again we’ve made money on 76 out of 92 trades in the last 18 months)… and gain access to all my Special Reports…

Click Here Now!!!

Best Regards,

Graham Summers