Quote of the Day, Week, Year, Decade

“This is a disastrous monetary policy; it’s kamikaze monetary policy” – Peter Schiff, CEO Of Euro Pacific Capital

Was I referring to Mr. Schiff with my headline? No. Peter Schiff put it much more succinct  which is always useful in this age of attention deficits. Actually my headline was referring to the following quote from credit rating agency Egan-Jones.

“[T]he FED’s QE3 will stoke the stock market and commodity prices, but in our opinion will hurt the US economy and, by extension, credit quality. Issuing additional currency and depressing interest rates via the purchasing of MBS does little to raise the real GDP of the US, but does (will*) reduce the value of the dollar (because of the increase in money supply), and in turn increase the cost of commodities (see the recent rise in the prices of energy, gold, and other commodities). The increased cost of commodities will pressure profitability of businesses, and increase the costs of consumers thereby reducing consumer purchasing power. Hence, in our opinion QE3 will be detrimental to credit quality for the US….” –Credit Rating Agency Egan-Jones

If this didn’t quite sink in just read the word in bold and you will see why I began this post with a quote from Peter Schiff

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