Facing some of his toughest critics on Capitol Hill in front of the House Budget Committee in February of 2011, Federal Reserve Chairman Ben Bernanke told lawmakers that Quantitative Easing would not permanently increase the money supply, since the Fed plans to reverse the policy once the economy recovers.

Looking at Gold and Silver prices, one might think the Fed has started reversing quantitative easing instead of merely implying they might start to taper back their purchases of bonds and other debt at some point in time.

Can the Fed truly reverse Quantitative Easing in this environment, or any environmant? Who exactly will start to buy the mountain of debt (how many trillion?!?) the Fed has purchased and what will be the related consequences?

I fear Quantitative Easing has permanently increased the money supply. My opinion is that Gold and Silver, particularly Silver, are significantly undervalued compared to the massive amount of global Fiat that has been printed – especially over the past 15 years or so.