Peter Schiff Says Fed Is Trapped Can’t Taper

The Federal Reserve has no intention to pull back on its monthly bond buying and instead is more likely to increase it due to economic weakness, investment pro and gold advocate Peter Schiff said.

Fed Chairman Ben Bernanke is trapped in a “monetary roach motel” that will force the central bank to continue quantitative easing, in turn leading to a major economic crisis, Schiff added.

“The recovery that the Federal Reserve is bragging about helping create is 100 percent dependent on the quantitative easing that it is supplying,” the CEO of Euro Pacific Capital said Monday during IndexUniverse’s Inside Commodities Conference. “Like every drug, the economy’s going to need more of it to sustain the phony economy. … Far from diminishing QE, the next big move is going to expand it.”

via CNBC

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