September 24th Update – Massive QE is needed to reliquify a system that the governments are sucking dry

As sovereign funding needs spiral higher, the governments are crowding out private investment and sucking all the liquidity out of the banking system. Only massive QE operations can restore longer-term liquidity

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-The governments are sucking the banking system dry and the unprecedented need to reliquify the system remains. The pressures are mounting, despite dropping longer-dated yields.
-The Fed cannot yet admit this, but eventually the Fed will have to begin more massive rounds of QE. I estimate that bond purchases will have to rise to about $50 billion a month. Prepare for what is coming.
-The Fed is regularly providing upwards of $75 billion in short-term liquidity in the repo market. The only solution will be massive QE. The repo operations didn’t work last decade and they won’t work now.
-The dollar continues to firm as the demand for dollars grows.
-Gold is rising as more people see impending potential crisis. It reminds me of 2005-2006.
-60-70% of the population have been left behind this decade. They made the worst financial decisions at the wrong time. They relied on ZeroHedge and the other alt-financial “analysts.” These writers couldn’t make it in the big-time, so they turned to their blogs. many listened and lost out.
-The elites chose this route. They could have taken a number of other avenues, but chose to perform QE and buy up the world instead. They will pursue this route until the bitter end, and this can last for years.

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