The Fed Announces QE2. Time to Start Stockpiling Food and Supplies

By
Real Estate Agent with Atlanta Communities Real Estate Brokerage GREC #208281

It's amazing how they can put a label on something and make it sound so smart and good.  The big word today was Quantitative Easing part 2.  "Quantitative" sounds so scientific and scholarly.  "Easing" sounds like it's under control.  Nothing radical here.  Just a nice and slow easing.  Those two words put together make it sound like it's probably a very good idea. People are willing to accept it without too much resistance.

But let's get real. It's nothing more than printing money, pure and simple.  To some, maybe printing money sounds like a grand idea.  At first glance, it sounds like a winner.  And that's why it's so easy to implement.

But what if they came out and said that over the next six months they were going to confiscate 20% of everyone's savings and income?  Everyone would be up in arms and there would be a mob with pitchforks on it's way to Washington. 

It's time to wake up.  That's what's on it's way because of this nice sounding Quantitative Easing.  Hopefully it will only make us 20% poorer and it won't get things totally unraveled and spiral into hyperinflation.

So you think prices are under control and we have nothing to worry about?  Have you seen prices for commodities the last few months?  Wheat going from $4.50 to $7.00.  Corn going from $3.50 to $5.50.  Cotton going from $0.80 to $1.40. Sugar going from $.015 to $0.30.  It's just a matter of a few months before you see these prices coming through with the products you buy at the supermarket.

It's because when you print money faster than the amount of goods and services is growing, you devalue the currency and it takes more of it to buy the same amount of stuff.

How will it feel to save $100,000 and have it in the bank and through this nice sounding QE2, you will only be able buy $80,000 worth of stuff?  Will the people realize what's going on? Probably not.  They won't blame the smart people at the Fed for doing the smart sounding quantitative easing.  They'll instead listen to the politicians start blaming the big bad producers for raising their prices.  It will be the greedy, evil businessman who gets the blame for higher prices.

Our only hope is for enough people to understand what's happening and who is responsible for it.  Only then can we hope for the real change that has to happen. 

Below are a few videos to help try to explain what's going on.

 

 

I know some instantly turn off when they see Glen Beck.  But don't dismiss the message because you don't like the messenger.

 

 

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About the Author:  Tim Maitski has been a full time Realtor since 1999. He has sold several hundreds of homes in areas around metro Atlanta.  Tim started with RE/MAX Greater Atlanta and is now with Atlanta Communities Real Estate Brokerage.

 

Along with blogging on ActiveRain, he provides one of the best real estate websites in Atlanta at www.HomeAtlanta.com .

 

His proprietary  "Maitski Line Reports" chart out the absorption rates over the past 14 years in 37 different market areas.  Know when it's a good time to buy or a good time to sell.    

 

His online Property Tax Calculator allows you to compare property taxes in many counties and cities around the Atlanta area.  He provides the Atlanta MLS Power Search Tool that allows searches of homes using over 35 specific criteria.

 

Over the years, Tim has optimized his business so that he now can offer a huge 50% commission rebate to his buyers.  The more experience one gets, the easier the job becomes.

 

Tim also has a "Five Days to Sold" System that uses an intensive marketing blitz to create a showing frenzy that creates urgency and offers.

 

Tim is always looking to LinkIn with anyone who is interested in building their social network.

 

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Rainmaker
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Leslie Ebersole
Swanepoel T3 Group - Saint Charles, IL
I help brokers build businesses they love.

Hi Tim, I don't know why you think $600 billion is a lot.

I wonder if any of these guys balance their checkbooks at home?

Yet another great post. I count on your for my news and information, thanks.

 

Nov 04, 2010 03:04 PM #1
Rainmaker
643,395
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

Tim, I did watch Glen Beck yesterday and it is quite scary.  Thank goodness I have the Lord to rely on.  If not it would totally drive me NUTS.

Nov 04, 2010 03:41 PM #2
Rainmaker
268,914
Dan Rosenberger
Harvest Realty - Westfield, IN

Tim, I heard a report on the radio that said that inflation was near 1% and the Fed has a fear of deflation.  Their objective is to increase inflation from 1% to 2%.  If they are successful at that, it doesn't sound so bad.  But with the massive borrowing in the last few years, higher inflation seems like a potential a few years down the road.  (People will be saying everybody knew that you couldn't borrow all of that money without causing inflation.)

Nov 05, 2010 02:06 AM #3
Rainmaker
560,561
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal
Leslie, It doesn't seem like much but just a couple of years ago the Fed's balance sheet only had $800 billion. So this is close to doubling that amount. Marchel, I feel the same way. Hopefully this is all for a good reason. Dan, I used to believe those numbers too. But there's all sorts of ways that they have manipulated inflation numbers. A good site to read about what they have done with the numbers over the years is www.shadowstats.com. Pull up some commodity charts to see what's coming down the line. Confidence in the dollar is the only thing that holds the system together. Once that confidence takes a hit, it all can unwind very quickly.
Nov 05, 2010 02:31 AM #4
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Rainmaker
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Tim Maitski

Truth, Excellence and a Good Deal
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