Realcent.org

A new QE by any other name will still be a QE. While the two QEs have been miserable failures, we're still junkies who need more and more.

Part of QE 3 will be disguised as something positive. Hmmmmmm. I'm thinking "stimulus" checks to every taxpayer in the amount of, say $500. Politicians jockey for favorable opinion as we lumber toward the 2012 elections, so what better way to win friends and influence enemies?

Few billion for that and then the rest is again funneled to big business and big banks for more of the same. This will be accompanied by a new round of "get fiscally tough" speeches and mandates by politicos, but it's still the same old hooey.

Obama has said he wants the states to suspend or reduce their fuel taxes. Most will recoil at that thought since they're in the hole already. Not going to happen. The Fed tax on a gallon of gas is far less than the state tax, so even if that's knocked off for awhile (say the entire month of May, for example), it's chump change on a $4.25 gallon of regular gas.

Opening up the Strategic Petroleum Reserve seems pointless since that's higher sulphur (AKA "sour") crude oil and takes additional refining processes to become a usable product. Refineries are already off-line for maintenance or experiencing other problems and can't even keep up with the current supply of oil.

Just doesn't look good.

I think there will be another QE once the market(s) correct. The current QE has already lost its effect on the most speculative stocks in the commodity sector because money velocity has been falling off a cliff since the first of the year.