Economist Schiff: QE3 is Coming and Will Worsen Our ‘Depression’

Money News:

Speculation abounded whether the Federal Reserve would implement another round of quantitative easing (QE) at its meeting this week.

Comments by Peter Schiff before the official announcement:

Peter Schiff, CEO of Euro Pacific Capital, says QE3 is coming, whether it’s this week, next week or in a couple months. And he doesn’t think that’s a good thing.

“The U.S. economy is addicted to QE,” Schiff tells Yahoo. “But if the Fed had any backbone it wouldn’t supply the heroin anymore. It would let the market restructure without QE, which is what we need.”

Artificially low interest rates are what prevent the economy from enjoying a more bountiful recovery, he says. Gross domestic product grew a measly 1.7 percent in the second quarter.

“The Fed can engender a phony recovery with QE, but it won’t last,” Schiff says.

“That’s what’s happening now, because QE2 is wearing off. … All this is counterproductive. It’s exacerbating the fundamental and structural imbalances that underlie the economy.”

Bottom line, he says: "as long as the Fed is doing QE, this recession, and I call it a depression, is going to get worse and worse and worse."

Many others doubt the effectiveness of QE3 too, saying it won’t even cut long-term interest rates as the Fed hopes, according to Learnbonds.com.
That’s because the money that the Fed injects into the financial system buying bonds boosts inflation and thus rates, Learnbonds.com says. The Fed action also would push investors from bonds to stocks, again lifting rates.

If you are following the comments of experts like Peter Schiff you realize that QE3 just 2-months before the election was absolutely another political move to help re-elect Obama and for Bernanke to save his job.  Mitt Romney has already said he would replace Bernanke.  It is just another wave of smoke and mirrors to help a temporary phone recovery that will come crashing down on us all.  And if we do not replace President Obama and Ben Bernanke there will be no-one with the ability to dig us out of the recession that is coming.

Wake-up America. 

Go to: MittRomney.com  and read Romney’s Economic Plan that has been posted there for months.

Ron Paul Warns:  It’s Bernanke in Blunderland

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