The Fed’s Taper is just Some Cosmetic Adjustments

Posted by Marc Faber via

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Screen Shot 2013-12-19 at 12.27.01 AM“The Fed will never end QE for good,” “They will continue because these programs, once they’re introduced, usually keep on going.””The economic recovery, or so-called recovery, by June of next year, will be in the fifth year of the recovery,” Faber said. “So at some stage the economy will weaken again, and at that point, the Fed will argue, ‘Well, we haven’t done enough, we have to do more.'””The Federal Reserve—all of them—could be sitting on a barrel of dynamite, and then pouring gasoline on top of it, and then light a cigar with matches, throw the match into the gasoline, and then not notice that there is any danger,” Faber said. “That is the state of mind of the professors at the Fed, who never worked a single [day] in business.” “They may do some cosmetic adjustments, but in my view, within a few years, the asset purchases will be substantially higher than they are today,” 

 Marc Faber told CNBC Yesterday