QE4 Ties Unemployment to Printing Speed

Written By: The WealthCycles Staff

When last discussing the outlook for printing, we posted alongside our free premium article, Silver and Gold Price Action - Winter Outlook, a video of Dr. Robert Murphy titled “Inflation is the Plan.” And indeed it is.

The plan is for prices to rise. So it’s not an unintentional consequence, it’s not a regrettable side effect of the policy, but in fact the point—the way this thing is supposed to work—is  to make prices rise even more quickly.

After we saw the Federal Reserve’s (Fed) actions today to increase the speed of printing, combined with our update on the supply of currency and credit (see chart below), we knew the Fed’s plan to significantly raise prices is coming right along. They can never undo what they have just done.

To sum it up, the Fed committee members agreed to tie interest rate fixing to an unemployment target of 6.5% and increase printing speed from $40 to $85 billion a month as widely expected, and as we wrote in our winter outlook.

...such a move (continuing to buy Treasuries after the Fed runs out of short-term Treasuries to sell) [would] boost new currency creation to $80 billion to $85 billion a month, eclipsing the QE2 run rate of $75 billion a month, proving a real impact to prices.

This is exactly what happened. We breakdown the details below.

Many times prior we have explained

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testiomials Whether by a devaluation, as Roosevelt accomplished in the 30s or by price inflation of the late 70s, it will take many, many more, weaker dollars to buy the same ounce of gold in the future.”

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