Jim Sinclair’s Commentary
The Fed has no choice of tools. QE is it.
Fiscal stimulation is mired in the best intentions of the new guys, but they haven’t a clue what will happen if they were successful.
Planned QE is now $900 billion.
Fed’s QE2 programme could grow to US$1.5 trillion, say analysts
By Jonathan Peeris | Posted: 10 November 2010
SINGAPORE: Analysts expect the US Federal Reserve to pump more cash into the economy if its US$600 billion bond-buying plan fails to prevent deflation.
Some market watchers said the Fed’s so-called quantitative easing (QE2) programme could eventually grow to as much as US$1.5 trillion.
High unemployment and fear of deflation have already prompted the US Federal Reserve to take action.
Some market watchers said the use of quantitative easing to stimulate growth may last for some time – despite the criticism levied at the US by other countries, including China.
Kevin Logan, Chief US Economist with HSBC, likened the Fed’s move to a leaky bucket.
"It’s almost as if the Federal Reserve is trying to put out a fire with a leaky bucket, but it’s the only bucket it has. So they’re going to try and continue to throw water on that fire, but meanwhile the liquidity leaks out.
Jim Sinclair’s Commentary
Do you recall all the battles that Gold had to fight when it first tried to take out $1000?
The following video seems to make fun of the bulls, myself included.
Now that gold is doing its usual round number battle at $1400, it might be fun to review it. You will love the ending.
Jim Sinclair’s Commentary
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