The statement from the Benmeister was expected with a market that is overheated and threatening to blow to bubble proportions. With the continued unabated QE promised Ben has to start jawboning the market down and pull some air out of the bubble. Unfortunately he encountered some leaks in the balloon that he may not have anticipated. The bond bubble started pooping er popping too. Gold and silver responded according to plan with weakness and anyone lucky enough to have fiat picked up some bargain priced physical precious metals. Ben's plan was to stall for time with QE and to let a badly wounded economy recover.
Here is the problem with "Ben's plan". First of all its not Ben's plan. He just thought it was his plan. Ben takes orders from the owners of the private Federal Reserve, and herein lies the conflict for Ben. Whether he thought he could see his QE to infinity could be continued to its conclusion doesn't really matter now......his replacement will usher in the next stage of the Supercycle collapse when he leaves in January 2014. The issue has ALWAYS been what his masters intended for him to do and now what they intend his replacement to do. Look at this from there perspective. These are the masters of the Universe. Owners of dozens of very large international banks and major corporations. A very small group of people worth individually TRILLIONS, working behind the scenes as puppetmasters moving the chess pieces through the decades and centuries.
Do you believe they are going to push the money printing into a blow off hyperinflationary collapse? Would that benefit them? Would erasing massive amounts of debt through a hyperinflationary currency debasement benefit their enormous debt holdings? Why do you think "bail-ins" suddenly appeared this year in Cyprus? What does that tell you? Why would this even be entertained given the money printing to that point? Think about massive continued money printing indefinitely and the impact this would have on these holders of all the wealth in the world.
Don't be deluded by the naysayers that claim gold only performs well in inflationary environments. It performs very well in hard down deflationary collapse. Its the fear trade. They may do this through many methods including using a diversionary event while true austerity is imposed on a clueless population. Nothing like fear to stimulate the senses AWAY from the bankers. Make no mistake, a wash, rinse, repeat is coming..... gl all