Editor’s note: As always, Jim offers exceptionally accurate insight and excellent forecasts.

My Dear Extended Family,

Such an announcement has been part of QE either from MSM or some Fed board
member since it began. The implication of stopping QE is so dire to the
economy that it is in a practical sense impossible. When gold was being sold
by central banks during the 1970s market announcements were made constantly
with the bias to depress metals.

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.

I have to admit that if you have been a reader here for any length of time
you should know this without asking me. The pressure that people unload on
me during any gold reaction is downright mean.

The statement that QE can stop is simply MOPE. QE cannot stop or the world
ends as you know it.

Please print this out and post it on your computer because every time the
long cycle guy repeats his year old bear gold price prediction or the Fed
says anything about stopping QE, you all go wild. It is embarrassing really.

If you do not understand what you are in, why are you in it?

Truman said it all when he said if you can’t stand the heat, get out of the
kitchen.

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. I am sure i have written this at least
200 times.