MY GOD, I couldn’t have gotten this more correct! While the ENTIRE WORLD expected a “taper,” I screamed that they could NEVER stop printing money. Fiat currency regimes are Ponzi Schemes by nature; and thus, MUST grow exponentially larger to avoid instantaneous collapse. They ALL eventually implode; and the larger the bubble grows, the more spectacular the implosion. As this bubble has been blown worldwide – over a period of 42 years, it will be the most spectacular financial collapse in human history; and likely, the history of living beings in ALL galaxies. I GUARANTEE you, if the Voyager satellite patrols the universe for the next billion years, it will never find a financial folly this dramatic – nor an economic collapse on a par with what we will soon experience here.
All along, I have been saying that rising interest rates will DESTROY everything in their path; as the “IRREVERSIBLE, GLOBAL DEBT ADDICTION” cannot absorb even the most miniscule rate increase; let alone, in a world in which the REAL economy is already at or near recession levels – and in some places, depressionary. For example, below is a chart of U.S. housing that starts back to the 1950s; and as you can see, this year’s Fed-fostered “boom” barely got starts back to the pre-recession levels of the past seven decades. And now, it’s already rolling over – with rates still near RECORD LOWS. What does this tell you of the state of the REAL economy; and what would happen if the Fed actually started to “taper” – let alone halt – Treasury monetization? And don’t forget that such MONEY PRINTING may well backfire miserably no matter what the Fed does; because at some point, the “bond vigilantes” WILL take the Fed’s $3.2 trillion portfolio to the woodshed. Will that time be now? I don’t know, but I certainly wouldn’t want to be caught without PHYSICAL gold and silver if it is!
Yes, the Fed not only decided to stand pat on QE4, but actually lowered its 2013 and 2014 economic outlook. Again, where’s the ballyhooed, make believe “recovery?” As I have been screaming all along, there is no recovery – and NEVER will be until fiat currencies are collapsed; and a new, sound money system borne in its stead. I will have MUCH, MUCH more to speak of this subject tomorrow; as frankly, I do my best writing in the morning, and would like to give it a little thought before discussing the topic. Suffice to say, there will be no shortage of commentary about the Fed’s HYPERINFLATIONARY decision; and aside from the newsletter, I will be taping a podcast tonight with Elijah Johnson and a Webinar with Turd Ferguson, which will be promptly posted as soon as they are published.