Analysts at investment banks are a bit like amateur meteorologists.  Whatever is the latest trend usually informs the tone of their research reports.  Last week TND and Silver Doctors detailed examples of capping efforts by the cartel leading up to and following the “no taper” announcement.  With the precious metals complex under wraps, it should come as no surprise that investment bank analysts are now coming out of the woodwork to declare bearish views.
While we believe the Fed will eventually perform a tapering to save face and attempt to maintain credibility, it will likely be a short-term performance, and nothing more than Kabuki theaterAny notion that QE can be meaningfully tapered over the next two years runs smack against the object reality of a weak economy sensitive to another downturn in housing and asset prices in general, which rising interest rates can easily cause.  Then there is the problem of weak demand for US bonds requiring the Fed to act as the buyer of last resort.
Click here for more from TND on how the banks are using the Fed’s taper threat to bash gold:

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