Alert: QE II Has Lit the Fuse

Thursday, November 11, 2010
By Paul Martin

by Tyler Durden
ZeroHedge.com
11/11/2010

From Chris Martenson

Alert: QE II Has Lit the Fuse

For a very long time I have been calling for, expecting and otherwise anticipating the day that the Federal Reserve would begin openly monetizing government debt. I knew the day would come intellectually, but in my heart I hoped it wouldn’t. But with the Fed’s recent decision to directly monetize the next 8 months of federal deficit spending, that day has finally arrived. I have to confess, while my prediction has proven accurate, I’m still stunned the Fed actually did it.

In this report I examine the risks that this new path presents, what match(es) may finally ignite the decades-old pile of dry fuel, what the outcomes are likely to be, and what we can and should be doing in preparation.

How is this Quantitative Easing (QE) different from the prior QE?
There are two main points of departure between the two QE programs:

•The level of global support for such efforts
•Where the money was/is targeted
Let’s take the second point first.

The Rest…HERE

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