reuters telling the truth about gold amazing !, page-22

danhoff

The consensus view in the US is that Ben will start to taper this year - probably announce this in September. My thinking is that after he goes in January 2014 they may not taper to zero - they may decide to continue with monthly bond purchases of USD20-40 billion after June 2014, depending on economic circumstances. This scenario is more likely if Yellen becomes Fed chairman, while Summers is more likely to end QE sooner rather than later (he favours fiscal stimulus over monetary stimulus which is losing its economic sting, except where asset prices are concerned).

Champ

The demand for gold is negatively impacted by real interest rates. At present the yield on 10 year US treasury bonds is higher than the officially reported inflation rate (lets not go into the issue about whether the reported inflation rate is understating the actual inflation rate).

I hope people are aware that the IMF has noted that China has a credit bubble - since 2008 credit has grown from USD8 trillion to USD23 trillion in 2013 (no wonder they have had an explosion in the number of billionaires). How will they handle this - more credit growth to the point where credit reaches USD40trillion in 2018?

loki