Goldman Sachs and Bond King Bill Gross: QE3 is on the Way in the United States

Printed Money and Quantitative Easing

Yet another reason to consider real asset alternative investments.  Both Goldman Sachs as well as noted bond investor Bill Gross are now predicting that the the next round of Quantitative Easing - QE3 - is on the way for the US.

As the graph demonstrates, there has been a huge move vertically in the size of the US monetary base since the financial crisis began, all from newly created money by the US Central Bank the Federal Reserve.  However, lest those opposed to QE criticize the Americans too harshly, it is well worth noting, as we did in an earlier post, that both the ECB and the PBoC (the Central Bank of China) both have larger monetary bases then the American FED.  For those who may have been contemplating the notion of investing in real assets, the latest news from the markets is yet one more reason to look at this option to hedge against inflation.