I would love to tell you I know when this is going to be over. If I knew, I would. Right now everyone is frustrated, confused, tired, pist off and probably 1,000 other feelings or emotions. You are not alone. This has been an extremely long journey. For all of us that thought this was going to be easy money, sorry. It was not meant to be that way. We have all heard this day and that day or can’t go past this date, blah blah blah and I am also guilty of that. But here are some of the facts that have not changed if you look at this on a global level.
The Global Economy:
Let’s look at the Global Economy. Nothing has changed in years and let me explain.
The United States. 16T in debt. Unemployment over 8% (probably a lot higher around 15%). Still waiti
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The Eurozone. Almost 12% unemployment. Came out after 2 years with a bond purchasing plan (ECB). What does this mean? Nothing! Greece is still defaulting. Unemployment is over 20%. Same with Spain. France, Italy, Portugal, Ireland and others are having a serious problem with debt (money owed). Germany is said to be heading into a recession by November 2012.
The United Kingdom. Well they have been in a double recession for over a year. Talk of them going into a triple recession (whatever that means). Kept their current stimulus in place, Interest rate stayed the same and continues to purchase bonds.
Brazil has done 2 forms of stimulus over the year. Their once bombing economy has started to feel the effects.
India. Over population, starvation, hundreds of millions of people without power and a struggling economy.
China cut interest rates twice over the course of a 3 month period (this rate was not cut in years prior to the last 2). Launched more stimulus for in country employment and infrastructure.
Vietnam just recently turned down a loan from the IMF. The economy is starting to show signs of a slowdown. Plus a major corruption in the banking system was just exposed.
Japan’s finance minister recently came out and told the world that by November 2012, Japan will have no more money.
Now I know Many are expecting the FED to do their QE3 this week. Why? Back at the end of July 2012, The ECB (European Central Bank) was ready. The BOE (Bank of England) was ready. The Central Bank of China was ready.The BOJ ( Bank of Japan) was ready.Yet the FED did not pull the trigger. We were told they wanted to look at the next 2 months unmployment/employment numbers. HuH? WTF. QE (Quantitative Easing) has no effect on unemployment numbers. This has been proven by economists who studied the first 2 of them. Then you have a letter leaked out, a couple of weeks ago, talking about how the FED is monitoring the economy. Wonder why? Now we all know that nothing happened then, so lets fast forward to last week and this week.
Last week, Central Banks throughout the world launched or kept in take some sort of stimulus. Obviously, the ECB being the main one. This left me thinking again, where is the FED. How come they did not react again? I know they meet this week and everyone expects them to do something. I do not. Let me explain why. If the FED was in charge, as the Central Bank, they would have acted in July. Not prolonged their action or lack of action. Not push the easing further away. Most of you know my thoughts and opinions on the USD (FED dollar) and the UST (Treasury note). For those who do not, I believe that the UST will become the Central Bank in the U.S. and the Treasury note will be gold backed (possibly backed by other types of natural resources with in the country). The lack of action shown by the FED and further lack of action will continue that belief.