Unlimited QE Announced by the FED & ECB! What’s next?

Dear PGM-Capital Blog readers,
ECB and FED Chairmen have spoken and they both declared to do whatever it takes (read to buy an unlimited amount of bonds) to respectively save the Euro and to safeguard the USA from going into Recession/Depression.

Ladies & Gentlemen,
Look how far our moral and values have fallen! The Economy of the West is in such an alarming stage that it can only survive and not go into a deep Recession, by being kept artificially alive by Quantitative Easing by the respective Central Banks.

The word Quantitative Easing sounds so nice, so elegant, that most people don’t realize that it’s just Money Printing. So, in fact we have fallen so deep in the abyss that the only lifeline to the Economy is an ever-continuing flow of worthless printed money.

Below video explains Quatitive Easing and shows the M0, M1, M2, & M3 Money supply from January 1971 until December 2010.

This newly created money out of thin-air will steal value of existing money, and subsequently will destroy savings and pensions.

History has proven that when an increased amount of money is chasing the same amount of goods, the prices of these goods that cannot be created out of thin air will go up, this is also called inflation.

This inflation will mainly affect food, energy and raw materials, which are out of the Core-CPI, workers will not be compensated for these price increases and will have to find additional jobs to make both ends meet.

When more and more laborers are fighting for scarcer and scarcer jobs, wages will go down. So we’ll see the most lethal combination for the middle class: namely, inflation of Food, Energy and raw materials and deflation of wages and home prices.

The West will experience a reverse of civilization, degreasing middle-class and increasing poverty.

On the other hand, inflation of food, energy and raw materials, in combination with deflation of wages and housing prices, will be good for the stock markets and the price of Gold & Silver.

These events will make the poor and the middleclass poorer and the rich richer.

With the rich and the new Rich Countries of the East, to double their gold holdings during the first 6 months of 2012, time is running out for the middle-class and the West.

If you agree with the above, we strongly advise you to get rid of your cash, and put your savings in Gold & Silver as a safe haven for the current perfect storm.

Last but not least, before following any investing advice, always take your investment horizon and risk tolerance into consideration and keep in mind that the price of Commodities, Precious metals as well as the stocks of their producers can be very volatile and that sharp corrections may happen in the short term.

Yours Sincerely,

Eric Panneflek

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