Quantitative Easing Could Mean Destruction of U.S. Dollar179 views 2012-10-04 01:56 Tags: recession
Michael Lombardi, financial expert and lead contributor to Profit Confidential, says that if you
were thinking that inflation
is not an issue facing the U.S. economy, think again. Lombardi reports that the
U.S. economy is facing inflation following the recent announcement of another
round of quantitative easing (QE3) by the Federal Reserve and the value of the
U.S. dollar could be destroyed. According to Lombardi, this spells disaster for
the already crippled U.S. economy.
“As the U.S. dollar declines in value against other world
currencies, goods imported into the U.S. become more expensive,” says Lombardi.
In the article “QE3:
Creates Inflation, Erodes the Dollar, Doesn’t Help Joe America,” Lombardi
points to the Producer Price Index (PPI) as wolesale prices saw 1.7% inflation
“It is the biggest rise in inflation in more than three
years,” notes Lombardi. “The inflation in wholesale prices in the U.S. economy
in August was mainly due to a hike in energy prices—6.4%, the biggest monthly
increase in three years.”
In Lombardi’s opinion, the Federal Reserve wants inflation: “That’s
the whole purpose of QE3,” he says, “to create inflation so asset prices go back
up. But it is backfiring. Yes, the stock market is rising. Yes, the prices of
goods are rising. But the most important inflation goal—creating jobs and
increasing wages—eludes the average American.”
Lombardi points out that all of this money printing will
eventually result in higher inflation and will hit the U.S. economy like never
“Food and gas prices are already on the rise in the U.S.
economy. The average American will pay more for basic needs,” reports Lombardi.
“We already have an increasing number of people going on food stamps, because
they can’t survive without them.”
With QE3, Lombardi claims that the U.S. economy could be headed toward total disaster.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
was among the first (back in late 2006) to predict that the U.S. economy would
be in a recession by late 2007. The daily e-letter correctly predicted the
crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and
rode the bear market rally from a Dow Jones Industrial Average of 6,440 on
March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
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