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No Taper. Of Course.

Written by Gary North on September 19, 2013

The financial media have been hyping the taper since mid-June. As September 18 drew near, the media were filled with predictions of a taper.

As you know by now, I regarded the entire thing as nonsense.

Bernanke announced no change. So, what else is new?

The Wall Street Journal announced the news within minutes. The following is pure spin.

After spending months preparing the public that they could begin to wind down an $85 billion-a-month bond-buying program at their September policy meeting, Federal Reserve officials got cold feet Wednesday and decided to keep the purchases in place.

The FOMC got cold feet! The FOMC did no such thing. The whole September taper prediction was a fabrication of the media. It fed on itself.

The FOMC has issued the same boilerplate since December 12, 2012. I posted this list of identical statements here. I said that the FED was unlikely to reverse itself. The economy has not changed.

I wrote that the talk of the September taper was the product of silly market analysts. I posted the article here.

As soon as Bernanke announced no change, the Dow shot  up 169 points. Gold shot up $52.

Here is what I told my GaryNorth.com subscribers on September 17.

I think the more important question is this: “What will be the effect on commodities if there is no announcement of tapering?” That would tend to keep the prices of commodities high, on the assumption that the Federal Reserve is not going to alter its monetary policy, which is what it has implied in every press release since the announcement of the new policy in December 2012.

Nothing has changed. More to the point, nothing had changed since June.

When the financial media agree on a sure thing, prepare for the opposite.

Continue Reading on online.wsj.com

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5 thoughts on “No Taper. Of Course.

  1. Nobody listens to me. I have been saying all along "after the election at the soonest". The Fed is still giving the sick Obama economy cover so it kind of looks healthy. After the election the Obamcrats will no longer care. Taper will start. Economy will crash. See my blog at http://cranky-conservative.blogspot.com

  2. It is , and has been beyond obvious that the fed cannot pull back on stimulus ? Simply because stimulus is what is holding up or propping up this completely phony economy ? The 85 billion a month is of course slightly over 1 trillion a year , but who's counting that into any equation ? Apparently nobody ……………no absurdity here , hey ? It is all explained in great detail at http://www.downtoearthprepper.com the site is NOT AT ALL about fat guys hording beans and bullets ? not even close . SO how is it possible that the economy is recovering and we are admitting a 17 + trillion debt ? it isn't possible , it is all simply the grand illusion ! And we do live in massive illusions …………..also check out Steve Baze on Twitter and Down to Earth Prepper on FB all these issues are explained in the website for all to see in simple terms . You guys and Mark Levin are heading in the right direction to wake people up ! So am I ………………..Steve

  3. Great analysis, great call, Doc.

  4. Looks like we will have to elect another glib talking Democrat to keep the phoney economy running. No wonder the powers that be hate the Tea Party.

  5. FreeMarketAnarchist says:

    The taper will never happen; in fact I believe the Fed will eventually be forced to increase their bond buying program when Treasury interest rates continue to creep up. The Fed is the buyer of last resort; there is nobody else able to buy them at a pace fast enough to satisfy the gluttonous appetite of the federal bureaucracy!