"QE to infinity" is far more than a catchy phrase favored by financial bloggers to explain the Fed's reckless policy of recent years...
It's a most unfortunate reality. QE5 is already here.
The truth is the Fed and Treasury currently exist solely to sustain and expand ruinous asset bubbles.
They've launched QE infinity, refusing to taper asset purchases in an effort to perpetually expand stock, bond, and home prices.
The Fed has made it perfectly clear during its FOMC meetings that it has no intentions of changing its current QE policy — unless "employment and economic conditions improve."
This is the one and only message they've sent out in the past three years, and it's consequently sending home sales and our economy at large straight to the toilet.
The primary goal of QE5, the fifth phase of QE infinity, is to permanently cap long-term interest rates.
As Janet Yellen succeeds Ben Bernanke, we're going to see more of the same: artificial economic growth.
Asset prices, interest rates, and credit creation will continue to be manipulated until a new system takes over.
But there is a light at the end of this dark tunnel. The tide is turning, and changes are underway...
We just have to stay proactive in navigating the madness in the meantime.
Fight the Fed: Rise Above the Manipulation Scheme
The way to continue thriving in these austere economic conditions, which result from a half century of market manipulation and crony "capitalists," lies in understanding four key ideas...
1. The Fed is powerless when it comes to creating real economic growth. Paper money is worthless when there are no jobs and the nation's manufacturing industry bottoms out. Factories need skilled workers; and while demand has been rising sharply since 2005, it's poised to reach crisis levels very soon. Experts say manufacturing faces a "ticking biological clock" that could completely derail future growth.
2. The dollar is dying. As the above plays out, China is slowly taking over the world, one gold bar at a time. Growing weary of being on the receiving end of the greenback and the Fed's mad money printing, this evolving world super-power with an insatiable appetite for the yellow metal has opened up her massive gold market.
3. Precious metals are poised for a "horrific rally," according to Peter Schiff...
Gold is the opposite of a bubble. If you look at the cost of mining gold, the price of gold hasn't even kept pace with the increase of the cost of mining. If gold were a bubble, then mining companies would be making money hand over fist, because the price of gold would be divorced from the cost of producing it. Price would fundamentally be way too high.
Gold companies are losing money because gold is the opposite of a bubble. Gold prices should have gone up more than they did, but they went down.
4. Silver has outperformed all financial assets and major commodities like corn, wheat, Bent Crude, and copper. Indeed, silver is slowly becoming the most valuable store of "economic energy," second only to its yellow metal sister. It'll be No. 1 soon enough.
As we approach a peak energy environment, silver and gold will continue to climb with these four factors in play — racking up exponential gains in congruency with the decline of the dollar.
Bond Market Collapse
Michael Pento, president and founder of Pento Portfolio Strategies, wrote a book called, The Coming Bond Market Collapse. Pento's work indicates that he too understands the big picture, predicting a coming financial apocalypse...
For investors seeking to insulate themselves against the worst shocks that will ensue, diversification NOW is a necessity if you want to thrive in another post-crisis economy:
The free market will eventually trump our government’s desire to constantly push asset prices to an artificially-high and unsustainable level. If investors thought the collapse of home prices was devastating in 2008, just imagine what will occur once real estate, equities and bonds prices collapse concurrently. That is why government needs to end its manipulation of asset prices, interest rates and credit creation now!
Indeed, things will get worse before they get better.
The Fed has no choice but to increase its monthly QE purchases in order to merely maintain a "status quo" economy.
No one's quite sure how high these monthly purchases will rise, but Marc Faber has already asserted his belief that Fed purchases could spike to an insane level of $1 trillion per month.
Precious metal retail investors are paying attention and taking action...
At least 5,000 Gold Eagles were sold in just two days' time last week. Evidently, the recent $40 gold dip turned out to be a pretty attractive opportunity.
Once people completely lose confidence in the dollar and fully distrust the financial institutions presently in place, we're going to see a major transformation in the way the world works.
In the process, precious metals will most certainly surge to never-before-seen levels.
So be sure to take a closer looking at the silver and gold mining stocks I shared with you last week.
Keep in mind, those silver mining stocks are likely to outperform the primary gold miners. It takes less energy to mine silver than to mine gold.
Farewell for now,
Brittany Stepniak is the Project Manager and Editor for the Outsider Club. Her “big picture” insights have helped guide thousands of investors towards achieving and maintaining personal and financial liberties while pursuing their individual dreams in lieu of all the modern-day chaos. For more on Brittany, take a look at her editor's page.