Here's a couple of other real economy news reports that should explain just how weak the economy is and just how imminent QE3 is:
Container-Ship Plunge Signals U.S. Slowdown - Plunging rates for chartering container vessels that carry sneakers, furniture and flat-screen TVs may signal a U.S. consumer slowdown and losses for shipping lines in what is traditionally their busiest time of the year. LINK
Juniper Sends Grim Signal - Juniper Networks Inc. offered some new clues that the U.S. economy is stalling, warning of slowing sales growth that sent its stock plunging 21% in trading Wednesday. LINK
Merck to Cut Up to 13,000 Jobs - Merck is cutting costs, expanding in emerging markets and spending on research and development...LINK
Good to see that Merck is following the example set by Obama's jobs Czar - GE's Jeffrey Immelt - and cutting jobs here and shifting the workforce to emerging markets. I'm guessing this is Obama's implicit yet official jobs policy now.
And here is what a former Chinese central banker is now advising Chinese policy-makers: Yu Yongding Says China Needs to Hold Less Treasuries as Safety a ‘Mirage’ - “U.S. bonds are not safe, but people think they are safe,” Yu, a researcher at a Beijing institute under the Chinese Academy of Social Sciences, told reporters at a briefing in Mumbai, India, today. “That is a mirage.” LINK
It will be just wonderful if we get a new debt-limit deal - and we will. But who the hell is going to buy all the new Treasury bonds that have to issued if our largest financier - the Chinese - decide to stop being the monetary crack dealer for our abusively reckless Government? Are you? I'm not...
Anyone not moving most of their investible money into gold and silver right now is an idiot. I have 90% of my net worth in the physical metal and in mining stocks. Everyone needs to understand that the dollar is going a LOT lower. Knowing that, why on earth would you want to own anything denominated in dollars? And that includes any metals ETF other than PHYS and PSLV. Yes, technically mining stocks are dollar assets, but I anticipate that because their business is gold and silver, the price performance of mining stocks will far outpace the rate of decline in the dollar.
Here's a good illustration of my point, with a chart from Sharelynx that shows how the value of your house is declined when you price it in terms of gold: