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Thread: Qe3 Is Necessary And Imminent

  1. #1
    Join Date
    Nov 2006
    Posts
    5

    Default Qe3 Is Necessary And Imminent

    Currency devaluation is a blessing to a nation's economy and stock market

    In 2001 Argentina's econmy was down the toilet and unemploment was about 25%. Moreover, the nation's deepening recession was rapidly morphing into a Depressionary Spiral.

    Consequently in the nick of time, Argentina's Central Bank saw the wisdom of a sharp devaluation of its peso vs the US$ in mid-2001.

    From that point the spectacular rest is heroic financial history for Argentina.

    Since 2001 Argentina's stock index (MERVAL) soared NO LESS THAN 1,145% during the next 10 years.

    PUTTING ARGENTINA'S PHENOMENAL RESULTS INTO PERSPECTIVE

    The chart of shows relative performances of MERVAL vs the US Dow Stock Index and value of the US dollar Index (from 2001 to Present):

    MERVAL de Argentina…………………………+1,144%
    US Dow Stocks Index………………………………+30%
    US Dollar………………………………………………....-33%

    http://stockcharts.com/h-sc/ui?s=$MERV&p=M&yr=10&mn=0&dy=0&id=p09929623421&lis tNum=-2&a=246766600

    VIVA Argentina...Viva la Devaluaciσn de 2001.

    Ohhhh BTW, QE3 in the USA will have the beneficial side effect of devaluating the US$, which will inevitably fuel US stocks to new all-time record highs.

    BANK ON IT.

  2. #2

    Default

    Quote Originally Posted by ichiban View Post
    Currency devaluation is a blessing to a nation's economy and stock market

    In 2001 Argentina's econmy was down the toilet and unemploment was about 25%. Moreover, the nation's deepening recession was rapidly morphing into a Depressionary Spiral.

    Consequently in the nick of time, Argentina's Central Bank saw the wisdom of a sharp devaluation of its peso vs the US$ in mid-2001.

    From that point the spectacular rest is heroic financial history for Argentina.

    Since 2001 Argentina's stock index (MERVAL) soared NO LESS THAN 1,145% during the next 10 years.

    PUTTING ARGENTINA'S PHENOMENAL RESULTS INTO PERSPECTIVE

    The chart of shows relative performances of MERVAL vs the US Dow Stock Index and value of the US dollar Index (from 2001 to Present):

    MERVAL de Argentina…………………………+1,144%
    US Dow Stocks Index………………………………+30%
    US Dollar………………………………………………....-33%

    http://stockcharts.com/h-sc/ui?s=$MERV&p=M&yr=10&mn=0&dy=0&id=p09929623421&lis tNum=-2&a=246766600

    VIVA Argentina...Viva la Devaluaciσn de 2001.

    Ohhhh BTW, QE3 in the USA will have the beneficial side effect of devaluating the US$, which will inevitably fuel US stocks to new all-time record highs.

    BANK ON IT.
    Yeah for the markets

    Yeah for the banks

    Yeah for me

    Huh?

    And in the mean time commodities go to the moon?
    Honor for US, Justice for Our Children! Now!

  3. #3

    Default

    Inflation will help with the nations debt and also people with their houses underwater but it can get dangerous as it can create hyperinflation

  4. #4

    Default

    Quote Originally Posted by ichiban View Post
    Snipe...
    Ohhhh BTW, QE3 in the USA will have the beneficial side effect of devaluating the US$, which will inevitably fuel US stocks to new all-time record highs.

    BANK ON IT.
    Devaluing the currency has NO Benefit to the Country who devaluates. The purchasing power of all financial assets remains the same.

    Those on fixed incomes (Social Security, etc. get screwed Big Time), the only people who benefit are foreigners who buy our goods and services, and those who want to payoff their debt.

    The rich benefit and the Middle Class becomes part of the working poor.

    Oil and all those things that we consume from China, Europe, Japan, etc. go Up in price.The Agriculture, etc. that we export receives fewer Yuan, Euros, etc. for the same quantity of goods.

    Low inflation, and a moderate growth rate = Higher standard of living.

  5. #5

    Default

    QE3 or bailout or currency manipulation do not solve fundamental problems. But it does have psychology effect to calm down people.

    I see this methodology like prescribing Penadol to relief pain symptoms of a fever. The QE is just one of the form of drug for bankers and politicians. IT does not solve any problem but relief pain "psychologically".

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