Originally Posted by ACEIV

Hi,

At the risk of sounding like a economics geek (I am), June 30th is right around the corner. If you don't know why this date is significant, you might need some financial guidance. On this day (or close to it), the Federal Reserve "Fed" will end its QE2. That stands for Quantitative Easing #2. For a while, the Fed has been purchasing 70% of all of the new bonds issued by the treasury (in essence, printing money). As of the end of June, they will have to announce QE3 or find someone to buy all of the bonds that the government needs to issue to pay for its deficit spending. With the Chinese being net sellers recently ($600 million) and Japan in no position to buy more US Debt with the tragedy there, this could be a domino of bad things to come. If they announce QE3, it will be a signal to the world financial markets that the US is going to use inflation to pay for all of our debts (with cheaper dollars)...a domino of bad things to come.

So as the saying goes, keep your powder dry...you may need it for a good investing opportunity or for other reasons.

I don't mean this to be a political point, only an economic point. Feel free to PM me with those thoughts.

Alex