Jim Sinclair: The Federal Reserve Has No Practical Option To End QE (Jan 2013)

jim_sinclair

Source: JSMineset – The Federal Reserve Has No Practical Option To End QE

Notable excerpts:

The implication of stopping QE is so dire to the economy that it is in a practical sense impossible.

There is no way that the implications and consequences of what has been done up to now can be talked or manipulated away. There is no practical way that QE can cease here or in Euroland without a total and final collapse of the financial system. Just go back to the IMF report on OTC derivatives I posted this morning. If QE ceases, the US bond market collapses and the Fed must debt monetize all required debt, which means if QE stops, it starts up again immediately and in a crisis mode.

The Federal Reserve has no practical option to end QE without ending the economic world for decades to come. Should that actually occur in some parallel universe, only gold will protect those citizens from the collapse of the by-default reserve currency.

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