It become official this past week, QE III is going to happen. For those of you wondering, QE III stands for quantitative easing. In other words, the federal government is going to increase spending in hopes of jump starting the stagnant economy. This marks the third time such an action has taken place.

So what exactly are they going to do? The answer is found in the bond world. No, not James Bond, but U.S. Treasury Bonds, the little pieces of paper the government sells to help raise money.  This time the government will crank up the magic money machine and print more green paper. With that paper they will buy up Treasuries or mortgages from private banks and in theory pump money into the system. Does it work? The answer might be in the second part of the name III.

This marks the third time QE has been tried and of course reviews vary, but it can be argued, if QE worked they would not have been a II and III.  There are a number of problems in the theory. First interest rates are so extremely low the risk to benefits for a lender is out of balance.  Why would a bank take a risk on a loan when the return is so low? The answer is most won't, they will just sit on the money or invest in other areas. Second as more money floods the system, the value of the dollar is at risk of dropping, in one word, inflation. That is a major problem.

Regardless of the debate QE III is coming and only time will tell what the outcome will be.

Morgan Silver Dollar and APMEX

Ready to invest in gold and silver? I have purchased many items over the years from APMEX. The customer service has been thumbs up and the product high grade. Even if you are just looking to make a few small investments, coins can be really great! I also like to use them as gifts and my kids really enjoy getting Morgan Dollars. The Morgan is a great piece of American history. Used in the Wild West, the Morgan is the coin you might see John Wayne tossing on the bar or Clint Eastwood laying down on the poker table! They really are a great investment and conversation piece.

Even for those not wishing to invest in commodities, the prices are still very important. I have put up a link for commodity prices. Take a look at corn, the price for this item is going to go up because of the drought in the Midwest. This means higher beef, pork and poultry prices are in the pipeline.

http://money.cnn.com/data/commodities/

Watch out world! The price of gold and almost all commodities shows little signs of letting up. The reason is simple, the world's finances are in a tumble and everyone is looking for something safe. That something is gold and silver, always has been and always will be. The reason being is they hold a true value, unlike paper money.

Keep investing in this safe place until the things settle down, but don't forget to take some profit....