Stealth QE3 is here!!.............from Rico

While Benny the Bernank dazzled us at the conclusion of the last 2-day FOMC meeting by putting lipstick on our economic pig, he also kinda-sorta 'told' us that QE3 was already in place and how it would work.

It is a "stealth" QE3, without being 'called' QE anything. Here's how it works:
- The FED will use money and principal payments from the maturing bonds it already holds to buy MORE bonds! The purchasing system/mechanism is nearly identical to their Treasury Bond purchase program (a.k.a. QE2).

This is really 'slick' because instead of 'printing more money' the 'reinvestment' of maturing debt (1) does not reduce the government's bloated, indebted, balance sheet, but (2) 'changes' the composition of that balance sheet, and [for Keynesians and Dem's (C)] (3) not for the better.

Reinvesting maturing debt does NOT retire that debt, but expands it with even more debt. it is a continuation of our current fiscal and monetary policies and will be ruinous for our economy.

Look for rising inflation to result from this....say 20% to 50%.
- But not to worry....you can TRUST the Government and our private Central Bank!!!