No taper again… as excess liquidity reaches all time high

As many expected, the US Fed announced last night it will not taper its $85b/month quantitative easing program.  In recent meetings the FOMC have said it was a ‘close vote’.  Well last night it was 9-1 in favour of ‘no taper’ in light of a multitude of bad economic data out of the US.  All this too after JP Morgan yesterday reported they have never seen more excess global money supply, saying it is the “most extreme in terms of magnitude” and is “far beyond anything seen in the last three episodes of excess liquidity: 1993-1995, 2001-2006, and during the Lehman emergency response from October 2008 to September 2010, all of which set off a blistering rise in asset prices”.  This ‘blistering rise in asset prices’ bubble will surely burst.  Gold and silver prices rallied strongly on the news before the usual suspects forced it down again.  Check out the GATA presentation on this posted to our website today.