December 8 2010: Policy makers work to delay, Gold and Silver movements, no rescues for Europe, Bernanke has no exit strategy, Inflation predictions, Fed crushes defaulting homeowners, economy barely expanding.
Policy makers within the Treasury and the Fed are only interested in delaying and extending the timeline trying to find and extricate themselves from one of the most dangerous fiscal and monetary failures of all time. They know they and their controllers have no solution. QE1 and QE2 have temporally saved them financially, but have not saved any economy, especially the American economy. In addition it has added to the severity of the crisis.
As a result gold, silver and commodities have traded higher over the past few years, albeit in a rollercoaster fashion, as a result of de-leveraging, a once in a century event. Foreign and domestic markets have remained relatively high due to the large liquidity injections of the period. That means without continued liquidity they could be in serious trouble. In addition in the US the real estate markets have not yet hit bottom, unemployment is high and will eventually go higher. As Keynes said you can’t have a recovery unless employment increases and we have some 20 major countries on the edge of insolvency. Those problems are worsening and that is borne out by the ECBs decision to restart its version of QE2. The main players know what they are doing is not going to work. Just look at the monetary policy of the last three years. It bailed out the financial sectors, allowed giant bonuses to be handed out to the people responsible for the debacle and we saw only a few crumbs thrown to the public. In the US the government extended the real estate failure by having Fannie Mae, Freddie Mac, Ginnie Mae and FHA engage in a new round of subprime and ALT-A mortgages. Trillions were thrown into a market that has become an even worse basket case than it was if that was possible.
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