Many of you have asked about the Fed’s rhetoric regarding easing up on the Quantitative Easing. This type of talk has driven the prices of gold and silver lower.
This is why the Fed cannot ease up on the QE:
- Although the U.S. economy has recovered since 2008- the economy is still extremely fragile;
- The growth in the United States has been below average;
- The housing market is not strong enough to higher mortgage rates
- The addiction to cheap money (low interest rates) will not go away
- The U.S. is the one of the biggest borrower globally!