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Gold & Silver Slammed As USD Surges Above Key Technical Level

• https://www.zerohedge.com, Tyler Durden

It seems all the worries are over? Peter Schiff does not believe so...

Even though at the September FOMC meeting, the Fed indicated it plans to hold interest rates at zero at least through 2023 and it plans to continue quantitative easing at current levels, the markets said, "That's not enough."

The markets need more. This bubble is so much bigger than the one that we had back then (2008) that it requires far more air coming from the Fed to keep it from deflating. So, we need more. The Fed needs to talk about negative interest rates. The Fed needs to commit to bigger quantitative easing."

Of course, in effect, the central bank is calling for more QE as Jerome Powell eggs on Congress to pass additional fiscal stimulus.

Any additional fiscal stimulus automatically requires more monetary stimulus, because where is the government going to get the money for the fiscal stimulus? It's going to get it from the Fed. That's what supposedly makes it a stimulus is that the government is going to run larger deficits. It's going to spend money it doesn't have."

But there is concern that if Congress and the White House can't get some type of fiscal stimulus package passed, the Fed won't just provide more monetary stimulus on its own.

All that monetary stimulus is going to do, absent the fiscal stimulus, is pump up the asset markets – the stock market, the real estate market, or bond market. It's not going to do anything for the real economy. I think the Fed believes that what will help the real economy is the fiscal stimulus. Now, the Fed is wrong. That's not going to help the real economy either."