By Jeff Davis. A CNBC article reports: “Investors should prepare themselves for a third round of ‘quantitative easing,’ Simon Maughn, co-head of European equities at MF Global, told CNBC Wednesday. ‘The bond market is going in one direction which is falling yields, which is telling you quite clearly the direction of economic travel is downwards. Downgrades. QE3 (a third round of quantitative easing) is coming. The bond markets are all smarter than us, and that’s exactly what the bond markets are telling me.’ …Once again, the United States will step up as the marginal buyer of bonds, said Maughn. ‘One more big injection of cash into the bond market should take you through at least the summer season into the beginning of the fourth quarter.’ ”
And once we get “taken through the summer season,” what then?
CNBC: “That cash injection will have the normal inflationary knock-on impact, driving back up commodities, supporting industrial stocks, dragging the financials up with them…”
When you print paper money without anything to back it up, then hyper-inflation sets in because the more money there is in circulation, the less it is worth.
It is like a mathematical equation: more paper money equals inflation and higher prices. Obama and Ben Bernanke know what is going to happen when they print trillions of more dollars if they haven’t already done so in secret.
So why are they doing it? I am beginning to think Rush Limbaugh is right, and that these people are deliberately inflicting this terrible inflation on America in order to destroy what remains of the private sector and make everybody in the country dependent on a government check of some kind.
