Friday, August 5, 2011

The ECB Announces The Final QE

The most important piece of financial news in over 2 years was just released.

The European Central Bank (their version of the Federal Reserve) is prepared to buy Italian and Spanish bonds in the open market.  That means they will print money to purchase the toxic debt.

The headlines are vague at this point but there are discussions to increase the size of the European bail out fund (their version of TARP) to over $3.5 trillion in size!

The solvent European countries (Germany and France) do not have the ability to fund a bail out of that size, so the key piece to the puzzle was the European Central Bank which finally relented this afternoon.  The bail out can now be unlimited in size as long as the ECB is willing to continue to print money to purchase the debt.

We are now locked and loaded for the final end game.

The developed nations (Japan, the Eurozone, United States, and United Kingdom) which are all bankrupt and issuing subprime debt have their central banks ready and committed to purchase all toxic debt that enters the market.

The ECB was the last bastion of hope, and the worst case scenario which I have discussed for years is now assured.

As the global government debt is erased through the depreciation of the paper currencies of the bankrupt countries, the cost of living will continue to rise for the poor and middle class who will receive no benefit from the banking system's bail out.

Things will ultimately turn violent when the people finally understand how they have been robbed by an unimaginably corrupt global banking system which now has full control of government leadership with record setting campaign contributions every year.

Look for this afternoon's news to be the catalyst for gold's launch to $2,000 and beyond.

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