Japan Big Bank QE, Weakening Yen to Inflate Economy and Stocks

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

marketoracle.co.uk / By Gary Dorsch / Dec 20, 2012 – 02:28 PM

“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some. And not one man in a million will detect the theft,” John Maynard Keynes wrote in 1920.

On Dec 12^th, a shadowy group of political lackeys, voted 11-1 to launch what’s popularly dubbed as “Infinity QE-4,” – the Federal Reserve’s most radical scheme ever, that’s designed to enable the US-government to continue borrowing as much as $1-trillion per year, for the next several years, if necessary, in order to finance the burgeoning US-welfare state. US-lawmakers are negotiating over the details of the so-called “fiscal cliff,” but are simply nibbling at the edges of $1-trillion budget deficits. Yet US-politicians from both sides of the isle, believe they can stave off significant tax hikes and spending cuts, without having to pay a penalty of sharply higher interest rates, which normally follows such fiscal recklessness.

In an unprecedented step, the Federal Reserve said on Dec 12^th, that it would hold short-term Treasury yields near zero –percent until the US-jobless rate falls to 6.5% as it launched a new round of T-bond purchases to inflate the US-money supply. Fed officials committed to monthly purchases of $45-billion in Treasuries on top of the $40-billion per month in mortgage-backed bonds they started buying in September. The new round of government bond-buying dubbed “Infinity QE-4” will be funded by essentially creating new money, and further expanding the Fed’s $2.8 trillion balance sheet today, to as much as $6-trillion by the end of 2015.  

“The Fed continues to operate an open bar for the fiscal drunks in Washington,” says economist Ed Yardmen, referring to the Fed’s readiness to finance Washington’s massive budget deficits. And since the Fed returns any interest payments on the T-notes, back to the Treasury, the federal government is able to borrow money at no cost. However, there is a cost to be paid by the American people, – a massive inflation tax, that will eventually take effect, when the cost of living in America begins to accelerate at a frightening pace, and the cost of goods and services far exceeds the current levels of US-household income.

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Thanks to BrotherJohnF