I've been of the view that they’re not going to taper. And the reason is that, once you get on this treadmill, or down the rabbit hole, you’re stuck. It takes a real leader to say that we went the wrong direction, and we’re going to stop and go back the other direction. This is the exact same thing that happened in Weimar, Germany in the 1920s. The German Reich’s bank was buying government paper in Germany and turning that into currency. It’s the exact same thing that happened in Zimbabwe a few years ago. It’s the exact same thing that happened in Argentina. The central bank there was buying Argentine government paper and turning it into currency. And that’s what QE is all about. It’s turning government debt into currency. And ultimately it leads to the destruction of the currency.
So I really don’t think they’re ever going to taper. And the Fed will continue to do what they’ve done very effectively. For a long time they’re going to just propagandize, they’re going to protect the purchasing power of the dollar, but they never do.
Since the Fed was established 100 years ago, the purchasing power of the dollar has gone down by various estimates: 97 or 98%. And it’s going to continue to go down. And the only way to protect yourself against that is to own physical gold and physical silver. And any other tangible asset that represents real wealth.
- Source, James Turk via Sprott Money:
