We’ve been programmed by the Fed to expect QE whenever the market goes down. That’s defense. It’s time for some offensive measures.
The Fed is going to implement QE3 as a tool of offense, in a last ditch attempt to rejuvenate the economy to try to cause a ripple effect that will help pay down western debt through higher than expected growth. That’s the plan.
Think about this economy as a big business. The well to do represent more than 70% of consumer spending. They don’t give a shit about gasoline prices, like the rest of you plebs. If gas was $20.00 per gallon, they’d still build 45,000 square foot mansions in Palm Beach. The point is, QE3 is geared to help the rich through asset appreciation. The poor to middle class do not move the needle (no Zuckerberg). Therefore, as a result, the Fed no longer caters to them with high CD rates.
The initial reaction to QE3 may be a sell off. Don’t be alarmed by that shit. The market will go up for 6 months straight. The gains will be nothing less than 20% and if you play your cards correctly, you too will be rich as fuck.
In short, the Fed is about to embark on aggressive offensive measures through POMO. If you doubt Bernanke’s resolve, sell him short via a little TZA. Be my fucking guest.
NOTE: The crop report confirmed THE CORN TRADE IS OVER, as predicted by yours truly. PPC is a buy.