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

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.

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About Ask Marion

I am a babyboomer and empty nester who savors every moment of my past and believes that it is the responsibility of each of us in my generation and Americans in general to make sure that America is as good or even a better place for future generations as it was for us. So far... we haven't done very well!! Favorite Quotes: "The first 50 years are to build and acquire; the second 50 are to leave your legacy"; "Do something that scares you every day!"; "The journey in between what you once were and who you are becoming is where the dance of life really takes place". At age 62 I find myself fighting inoperable uterine Cancer and thanks to the man upstairs and the prayers from so many people including many of my readers from AskMarion and JustOneMorePet... I'm beating it. After losing our business because of the economy and factors related to the re-election of President Obama in 2012 followed by 16-mos of job hunting, my architect-trained husband is working as a trucker and has only been home approximately 5-days a month since I was diagnosed, which has made everything more difficult and often lonely... plus funds are tight. Our family medical deductible is 12K per year for two of us; thank you ObamaCare. But thanks to donations from so many of you, we are making ends meet as I go through treatment while taking care of my father-in-law who is suffering from late stage Alzheimer's and my mother-in-law who suffers from RA and onset dementia as well as hearing loss, for which there are no caretaker funds, as I continue the fight here online to inform and help restore our amazing country. And finally I need to thank a core group of family, friends, and readers... all at a distance, who check in with me regularly. Plus, I must thank my furkids who have not left my side through this fight. You can see them at JustOneMorePet.

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