Wednesday, June 20, 2012

The evils of QE3

I just explained to my grand child that money did not fall from sky or grow in trees.

Every time we print money, it does the following:

1. An invisible tax to those who have as their purchasing power will be decreased.

2. Your children and grand children... will pay for it.

3. Selling a piece of our asset to foreigners.

The only winners are the politicians as they bought votes with the money from your pocket.

That's why the stock pickers are losing as they do not understand the problem of printing money at the max. That's also why this recovery takes forever. Printing money to the max. is not a solution but a problem.

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