Three years ago I sat in a wealth seminar that had some of the world’s top investors and economists hosting the event. What is listened to at the time was something I believed to be somewhat conspiratorial and difficult to wrap my head around.
The topic was about the US Dollar money supply, the effects of QE1 and the devaluation of the US Dollar to the point of collapse. There was a super in depth explanation on the collapse of the German Weimar Republic currency that eventually led to the rise of Adolph Hitler ( but that’s a whole different story). Once the explanation was completed, the lecturer then did an overlay of the US money supply in relation to the once German currency. The graphs were almost identical.
The conclusion of the presenters was that the US (after having launched QE1) could and would never stop stimulating the economy because once it did, depression would ensue and the economy and the currency would collapse. That was three years ago.
SInce then I have watched the world’s wealthiest move their investments around about 30-60 days before any major monetary announcements were to be made. In the last 30 days George Soros divested himself off all Bank stocks (and bought gold bullion), Vladimir Putin in the last two weeks took huge positions in Gold Bullion, Lord Rothschild took a 1.9 Billion Pound Sterling short position of the Euro to mature in December of 2012, the Rockefellers restructured their investments last month also.
Now comes the open ended QE3 stimulus, a 40 billion/month investment plan to buy mortgages ( of all things) until the end of 2015. That’s slightly over one Trillion but a commitment to inject more into the economy when needed. The 2015 deadline is only a checkpoint to see of the economy has gotten an better not an end to the program.
My head is still spinning from this today and our elected officials (Both Democrats and Republicans) along with the privately held Federal Reserve has just put the full collapse of the US economy into overdrive.