From Gold Scents:
... Folks, a recession is unavoidable at this point. The piper is going to have to be paid for printing trillions of dollars and bailing out the financial system. Unfortunately, there's no way around that. The question is, will Bernanke make the ultimate blunder and initiate QE3? I'll explain in a second.
Next, we need to take a look at the dollar chart. It's not a pretty picture. With the market in free-fall, the dollar should be rallying violently. If May marked the three-year cycle low – like I originally thought – the dollar should be rising rapidly by now.The fact that it's not is a very ominous sign.
I'm starting to worry that Bernanke is going to initiate QE3 and add a currency crisis on top of the economy sliding back into recession. The combination of both of these at the same time will trigger a collapse much worse than what we went through in 2008...
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More on the Federal Reserve:
No way out: The Federal Reserve is in BIG trouble now
Fed president admits: More stimulus would only create inflation, not growth
Alan Greenspan: "No evidence" the Fed helped the economy... QE3 will only destroy the dollar