One cannot discuss tapering-mythology, however, without briefly relating these lies to the precious metals markets. We’re told that “tapering is bad” for gold and silver (even though no tapering is actually taking place) meaning that talk of “tapering” is – supposedly – bad for gold and silver. But not even this fragment of the lying has any rationality to it.
As usual; we are provided with nothing but an argument-fragment by the mainstream media, because if we were given the entire (totally flawed) argument it could not even fool the Sheep. There are a litany of hidden assumptions excluded from the lie that “tapering is bad” for precious metals.
At the top of this list we have the simplest of premises. “Tapering” could only be bearish for gold/silver if a significant amount of this funny-money was (previously) being invested in precious metals. However, as we all know, this is totally false – and thus the propaganda machine doesn’t even attempt to provide any evidence for its argument.
None of this “QE” funny-money was ever being invested in gold/silver. In fact; significant amounts of this paper was/is used to short precious metals. This is one of the reasons why “tapering” – if it actually existed – would be clearly bullish for gold and silver. But there is a second (and much bigger) reason why any actual reduction in the unit-printing would be ultra-bullish for gold and silver.
It is our Ponzi-scheme economies, themselves. As previously noted; even too much talk about “tapering” is enough to seriously destabilize the U.S. economy. Any actual, significant reduction in the unit-printing must cause a complete implosion of the U.S. economy (and likely all Western dominoes). The chart above is mathematically conclusive proof of this.
All economic exponential functions have only two theoretically possible outcomes. Either they simply explode (soon) when the exponential function runs its course, or they implode – the moment the fuel for the exponential function is withdrawn. It is mathematically impossible to ever have a “soft landing” from any exponential curve, as this is the mathematical representation of “out of control”.
Let me summarize. No “tapering” of any kind has taken place with respect to U.S. unit-printing, and none will ever take place, unless the goal is to deliberately detonate these Ponzi-schemes. Thus if any (real) “tapering” occurred it would be ultra-bullish for gold and silver. However, if no “tapering” takes place; our economies will still explode (and soon) – which is also ultra-bullish for gold and silver.
All roads lead to higher gold and silver prices.
This article is brought to you courtesy of Jeff Nielson From Bullion Bulls Canada.