Surprise Surprise...Fed Launches QE3

[Atown512]

Unless I somehow missed it, I can't believe there is no thread on the new QE3 announcement. Fed Undertakes QE3 With $40 Billion Monthly MBS Purchases - Bloomberg

Of course it's not surprising the Fed launches QE3, but now it is open-ended. Scary time to have US dollar assets...definitely glad most of my money is sitting in CAD and precious metals at the moment. :groove:

 

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[XavierYZ]

My silver is hoard value is hopefully coming back up to 45 like it was 18 months ago

Surprised qe3 took this long. I think this collapse will eventually rollout around the world. Everybody keeps on shopping.

I try not to think of what will happens when it does. Most people around me think I am crazy when I start talking about Germany and the hyperinflation era,

Who know how it will play out. I see it as the intentional demise of the dollar. But save that for another thread

 

[MJ DeMarco]

I can't believe there is no thread on the new QE3 announcement.

Believe me, I noticed: I'm preparing for a worldwide economic collapse - the odds of occurrence, and speed, depending on who gets elected in November.

 

[Kak]

:nonod:

This place sucks so bad...

 

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[Leoto]

Big Ben might as well sprinkle Benjamins out of helicopters over every major city in the US. And by then, about 10 of those Benjamins can be traded in at the supermarket for a loaf of bread.

 

[G-man422]

This open ended Fed printing is disgusting. It worked so well the first two times we might as well go for lucky number 3. Hold onto your hats everybody, because this might get a little bumpy.

Welp, time to go get some more gold, silver, lead and steel.

 

[Rickson9]

I'm not really worried. I hold CAN and US RE, and US stocks. A collapse is always good. More assets on the cheap for me.

 

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[Kak]

That is a good way to think about it unless your assets and currency devalue just like all of the properties you want to buy.

 

[Rickson9]

That is a good way to think about it unless your assets devalue with just like all of the properties you want to buy.

All due respect. Won't happen.

Why? A belief. Based on what? Let me explain. As a Canadian, in my opinion...

...the U.S. has developed, bar none, the absolute best capitalistic system that the world has ever seen (to date). I'm not saying that it's perfect. But it's really really really good. Capitalism is strongest in the U.S. like no other country on the planet. No matter who you are, entrepreneur or investor, you have the opportunity to make a little money, or a lot of money, whatever your born-gifts allow.

I'm not an entrepreneur, I was for a little while, but it wasn't for me. For some, it's an obsession. For me, it was torture. I'm an investor. For some, that's torture. For me, it's an obsession. How do I make money as an investor?

Simple.

I understand entrepreneurs to a limited extent. I know that the U.S. system rewards entrepreneurs that satisfy some of the biggest needs in society. The U.S. capitalistic system also (brilliantly) allows non-entrepreneurs like myself, to piggy-back on the success of entrepreneurs via the capital markets. For me, the stock market isn't a casino, it's a place where strong entrepreneurs and businesses are rewarded and poor ones are punished.

So what do I do?

There is a small subset of entrepreneurs that are extremely intelligent and run really strong businesses. There's a smaller subset of entrepreneurs that bring their business to the capital markets. There's a smaller subset of entrepreneurs that retain ownership of their businesses without selling it all away. That's who I piggy-back on.

I piggy-back on successful entrepreneurs, with a proven track record of increasing revenue and profit, that have taken to the capital (stock) markets, and still hold millions of shares of stock.

But I don't blindly buy in. That's crazy. Why?

It's crazy because the vast majority of individuals can't value a business. This can be seen in popular shows like Shark Tank where (even) entrepreneurs overvalue their businesses and in the public (stock) markets where prices are way out of line with any financial metric.

I wait.

What do I wait for? Let me tell you. Even though the U.S. capitalistic system is (almost) perfect, it does experience, from time to time, catastrophic crashes. Causes are debatable. But whatever the reason, they happen. What happens during a crash?

Opportunity.

During a collapse. There is MASSIVE opportunity presented to investors. People like me get the MASSIVE opportunity to piggy-back on the backs of the cream of the crop of entrepreneurs by buying stock in their businesses.

Imagine that.

I can be partners with people like Jim Jannard, who started the sunglasses company Oakley in his garage. Just because the stock market threw up.

Imagine that.

There are/have been many founder/CEO/entrepreneurs in the stock market. Dozens of them. Jim Jannard. Daniel Hirschfeld, Tom Kartsotis, Michael King, Warren Buffett, Maurice Marciano, Melvin Gordon, Gertrude Boyle, the list goes on and on. They address massive value and they get rewarded massively. And I get to be their partners for pennies on the dollar.

Imagine that.

Now, why would I say that a total collapse won't happen? Let me tell you.

Because if a total collapse happened that "devalues my assets" it would absolutely decimate some of the wealthiest, most brilliant entrepreneurs in the U.S. capitalistic system. And if that happened. Well. Let's just say that we will all probably have a lot more to worry about than money.

Won't happen.

The same is true for real estate. I buy so dirt low that nobody can even build a property at the prices that I pay - unless you were able to teleport workers from China, build the property in Phoenix, and then teleport them back. And even then, I'm not sure you could do it because of the cost of the land. It would be damn close.

A total collapse won't do anything to me. It will allow me to buy even more. And if the U.S. capitalistic system survives. Which I have NO DOUBT it will do. I will come out the other side even wealthier. It's happened in the past. It will happen again in the future.

I'd bet on it.

In fact, by investing during those times, I'm always betting on it.

 

[ColtonJD91]

Good god... Like gas isn't expensive enough. Maybe I'm ignorant, but what exactly is more debt buying programs or "QE" as they so delicately put it, going to help? US debt is already yielding next to no interest. Other slowlaners like myself (at least for now that is) don't get instant raises to cope with inflation, reducing our buying power. I suppose it can help exports by devaluing the dollar but is that really it? Maybe someone with a better economic background can help here?

 

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[socaldude]

I hold CAN and US RE, and US stocks

I was expecting a huge sell off this month. The euro zone and the fed.

I'm looking into the swiss franc and the australian dollar :coolgleamA:.

 

[socaldude]

Maybe I'm ignorant, but what exactly is more debt buying programs or "QE" as they so delicately put it, going to help

The fed buys securities on the open market to influence the supply of money to keep interest rates low, kinda how like China does to screw with the price of their renminbi. They are targeting the housing market because its a huge chunk of our GDP.

Economics is kinda like Karma. You get what you give. Thats what worries me.

 

[Kak]

All due respect. Won't happen.

Understood. I am not in your industry. From the outside looking in that just seems like a very "finger in the wind" approach to investing.

 

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[Rickson9]

Understood. I am not in your industry. From the outside looking in that just seems like a very "finger in the wind" approach to investing.

It is. But if all I want is a few million dollars, that's all I have to do.

 

[Kak]

So, how is the Canadian business environment? It is the only foreign country I can currently open business channels in and diversify to. I had not even considered leaving Texas, but lately I am looking ahead to my next move.

 

[Rickson9]

So, how is the Canadian business environment? It is the only foreign country I can currently open business channels in and diversify to. I had not even considered leaving Texas, but lately I am looking ahead to my next move.

If you were born and raised in Texas and came to the province of Ontario where I live, you would say that this place is totally socialist.

And you'd be right.

 

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[Kak]

If you were born and raised in Texas and came to the province of Ontario where I live, you would say that this place is totally socialist.

And you'd be right.

Ah, I know I said "leaving" I mean growing out of. Simply doing some business in Canada.

Despite flag waving "the US is a capitalist country" propaganda, the US is also a socialist country from both sides of the isle. Our voting majority HATES capitalism so it is only going to get worse. I don't know that much about Canada, but I do know it was just recently that the US fell behind Canada in the index of economic freedom.

http://www.heritage.org/index/

 

[Guest682]

Believe me, I noticed: I'm preparing for a worldwide economic collapse - the odds of occurrence, and speed, depending on who gets elected in November.

Question to anyone who believes in the possibility.

How are you preparing? I've been sensing a tension in the air, but when searching for relevant info on the subject there's just soo much bs out there for people just tryna sell stuff. I don't believe in metals or paper / digital currency because you can't eat it. I hardly know anything about economics could you recommend any literature for a crash course to understand like gdp to debt, and how the international banks / fed work?

My whole minimalist thing that I'm starting is to just be as mobile and flexible as possible while still be able to integrate with the current system or any new system that may arise, i just want to stay poised.

If there is a collapse of the dollar what countries would come out on top?

 

[jilla82]

Freak out much?

 

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[Kak]

I guess just keep your options open. I sell a collapse proof product although the money I make may falter, I will still have a business. I also just bought the Canadian variant of my domain.

 

[Guest682]

Freak out much?

Nothing lasts forever.

 

[Vigilante]

My silver is hoard value is hopefully coming back up to 45 like it was 18 months ago...

Most people around me think I am crazy when I start talking about Germany and the hyperinflation era,

I an expecting a rise in silver in the next decade that will blow away your expectations. I am slowly accumulating physical silver.

I have a friend that is brilliant financial analyst. When you can get him to talk about it (which isn't often, as he's afraid that people think that he's nuts) his prediction is not IF the United States will hit hyper-inflation, it's WHEN. The major trigger might be if China ever calls their notes. It's the ultimate trump card that could turn China into the largest superpower in the world, at the expense of the collapse of the U.S. economy and the devaluation of the dollar to literally zero.

 

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[Vigilante]

Freak out much?

you are missing significant warning signs, friend

 

[Guest682]

The major trigger might be if China ever calls their notes. It's the ultimate trump card that could turn China into the largest superpower in the world, at the expense of the collapse of the U.S. economy and the devaluation of the dollar to literally zero.

Still learning, but by 'notes' we mean the bonds which is really just debt? And the incentive for china to buy the bond is the interest or return I guess once we magically get out of our debt issues? I'm confused by what i've been reading, if a nation receives a bond that means they pay for it hoping for a return at a later date right? My big question is when a bond is issued who determines that interest rate and time period for the interest to grow?

 

[PatrickP]

It is a business deal. The two countries determine it.

Here is MY prediction. NEVER hyper inflation in the US of A. Well not for the next 50 years at least.

China will continue loaning the US money. Their economy, while doing well is not doing that great anymore as it is.

The USA buys a huge amount of their goods and products. If they put us under they lose a tremendous percentage of their exports.


Of course NONE of us know what is going to happen. BUT I will stake ALL my money that we will not see this in my lifetime. Only way to tell is we will all meet back here 9/15/2062 and noon and see who was right

 

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[XavierYZ]

I an expecting a rise in silver in the next decade that will blow away your expectations. I am slowly accumulating physical silver.

I have a friend that is brilliant financial analyst. When you can get him to talk about it (which isn't often, as he's afraid that people think that he's nuts) his prediction is not IF the United States will hit hyper-inflation, it's WHEN. The major trigger might be if China ever calls their notes. It's the ultimate trump card that could turn China into the largest superpower in the world, at the expense of the collapse of the U.S. economy and the devaluation of the dollar to literally zero.

I think China has the biggest role in all of this, considering how much US debt they keep buying up, last year when the credit rating was down graded, China was selling off large amounts of US currency in exchange for Gold, and during that same period Russia and China started trading between each other using there own currencies, furthering more speculation that a possible shift from US dollar being the Reserve Currency of the world. I haven't heard much since last years downgrade. I expect QE3 will increase discussions of a new reserve currency.

If hyper inflation happens, will we see a new currency rise from the ashes?

Just because most people haven't experienced a hyper inflationary period similar to what happened in German, doesn't mean it won't happen.

Most people believe that all these theory's are crazy talk because, of status quo.

I suggest people take a few mins and read up on germany it was a crazy time in history.

"Man goes to store to buy bread with a wheelbarrow full of money, he left it out side for a moment, when he back outside, someone stole the wheelbarrow. Leaving the money."

On Pay day women would go to there husbands work to get there pay checks and run to the bank to cash it, then find the nearest store and buy what ever was on the shelfs, because the purchasing power was declining by the second.

If you went to a coffee shop and knew you wanted 2 cups of coffee, one after another, you would by both at the same time, if you didn't the second cup would cost more than the first.

restaurant menus had no pricing because the cost changed so much.

 

[PatrickP]

I will be reading the rest of this thread from my bomb shelter, while wearing my tin foil hat

 

[XavierYZ]

I will be reading the rest of this thread from my bomb shelter, while wearing my tin foil hat

I already have a prototype tinfoil hate ready for production, Patrick, you can preorder them here at

www.tinfoilhatemporium.com

order in the next 10 mins and receive a second hat for a friend for 1/2 price

 

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[Kak]

Freak out much?

Prove us wrong... I am starting to think you are one of the people that needs the economic education from that other thread. Perfect example, you seem just fine living your life making up your own realities. Please, at least look at the big picture.

 

[Likwid24]

What the hell is everyone so worried about??????? The world is going to end in 96 Days, 14 Hours and 53 minutes from the time of this post. Where's QE4!? We might as well spend it all before it's all over!

http://http://www.worldend.org/2012/clock-countdown.html



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