The Ultra-Bullish Scenario For Gold and Silver [SPDR Gold Trust (ETF), iShares Silver Trust (ETF)]

gold and silverJeff Nielson: One could only hope that after nine, nauseating months of lies and half-truths from the U.S. Federal Reserve and mainstream media on so-called “tapering” that we would be spared any more of this nonsense in 2014. Sadly, since the mainstream propaganda machine found this a very fruitful form of lying in 2013, and since it is rapidly running out of any other semi-plausible fiction to use in holding together our smoke-and-mirrors economies; it appears that “tapering” is here to stay – i.e. talk about “tapering”.

The improving economy led the Federal Reserve to begin tapering its bond purchases this year. Monthly purchases of government bonds and mortgage-backed securities will be reduced from $85 billion to $75 billion this month, and it is likely that the quantitative easing program will come to a close by the end of 2104. [sic]

The delightful “Freudian slip” above by the Conference Board of Canada is the nexus of all this propaganda, and so it is the first point which must be stressed in debunking the lies. There is no “tapering” taking place in the United States, in fact most likely the money-printing has increased. A previously familiar chart (below) demonstrates this.

Where is the supposed “tapering” which took place last year? It’s not here, meaning that no reduction in the money-printing ever took place.

But regular readers undoubtedly have another question. Why does this chart of the U.S. adjusted monetary base now appear stretched-out, rather than the simple, vertical line that they are used to seeing? Because a chart which used to be scaled in decades is now scaled in years. Throughout the entire (modern) history of the U.S. dollar; changes in the monetary base have been so slow/gradual that the chart which measured the monetary base could be scaled in decades.

Today, with the Federal Reserve’s virtual “printing press” running white-hot, 24/7; the only way we can still see incremental changes (i.e. anything other than a sheer, vertical line) is by stretching-out the scale of the chart dramatically. The simple fact that this chart has been re-scaled tells us there will be no tapering. No reputable institution would change the scale of a key statistic temporarily, for just a few months. If the Federal Reserve had any serious plans to “taper”; it would have never changed the scale of its own chart measuring the (official) money-printing.

Naturally, this necessitates flashing-back to December. After nine months of empty talk, we finally saw some sham-action from the Federal Reserve: an announcement of “tapering” – which could only actually be seen when viewed under a microscope.

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