Peter Schiff’s Official Gold Blog

In his latest commentary, Peter Schiff shares his thoughts on today’s news that the Federal Reserve will not taper its quantitative easing program and continue to purchase $85 billion worth of Treasuries and mortgage-backed securities every month. Peter has been predicting this outcome all summer. In this piece, he explains the limited options left to the Fed as this disastrous monetary policy continues to drag on the economy. It’s worth noting that the price of physical gold and silver surged on today’s news, as investors were reminded that precious metals remain a superior safe haven asset.

The Fed’s failure today to announce some sort of tapering of its QE program, despite the consensus of an overwhelming percentage of economists who expected action, once again reveals the degree to which mainstream analysts have overestimated the strength of our current economy. The Fed understands, as the market seems not to, that the current “recovery” could not survive without continuation of massive monetary stimulus. Mainstream economists have mistaken the symptoms of the Fed’s monetary expansion, most notably rising stock and real estate prices, as signs of real and sustainable growth. But the current asset price bubbles have nothing to do with the real economy. To the contrary, they are setting up for a painful correction that will likely be worse than the one we experienced five years ago.

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