Sunday, November 24, 2013

Market Will Eventually Force the FED to Taper

If and when the Federal Reserve stops or even slows down printing money, and other banks also slow down, I do not think the Japanese will slow down. Maybe the English and the European banks will. There will be a moderating affect on markets because that is where most of the money has gone.

I am not sure it (Fed slowing down money printing) is going to happen. Firstly, Bernanke will not do it while he is here (Fed Chairman) because he does not want to go out with an egg on his face. Secondly, Ms Yellen is coming in. I doubt if she is going to do it at first anyway because, a) she is keen on printing money and b) she knows what will happen when they start slowing down. So she is not going to do it anytime soon. If they do start slowing down, the markets are going to react and they (Fed) will panic and come back and say, "oh we are sorry". So, I do not see much tapering anytime soon.

The market eventually will force them (Fed) to cut back. Eventually, the market is going to say, "we do not want this garbage paper anymore, we do not want to play this game anymore". But, I do not see that happening anytime soon.

- Source, Jim Rogers via the Economic Times: