The USFed under Greenspan and Bernanke has had a history of creating bubbles and then pricking them, with an important hand in every crisis. The ongoing endless perpetual ZIRP & QE is their legacy, which has placed a noose around the neck of the nation. Systemic failure, dead ahead!! The Gold Trade Standard will rise from the ashes of the wrecked USTreasury Bond bubble, the greatest grandest beast in asset bubble history. The Jackass view is simple. Janet Yellen is set to take the bagholder post as the new USFed chair. She is stuck in the current monetary policy with no option to alter the course toward catastrophe. She has no workable options. Her acceptance for the job is testimony to pride, not ambition. One must be very curious what reward she and Bernanke were offered to manage the Weimar wagon train and centrifuge on the caboose. Yellen cannot stop the Zero Interest Rate Policy, or else face an implosion to the USEconomy from rising rates. She cannot stop the Quantitative Easing policy either, or else face an implosion to the USTreasury Bond market from unwinding carry trade, diversification among foreign bond holders, and the lit fuse of derivatives. Yellen is bound to continue the amplified free money course, despite the growing risks and certain capital destruction. A key question is whether Yellen will slip in a comment that ZIRP & QE kills capital and thus inhibits the delusional recovery, the requirement to end the accommodative policy. The final question is whether Yellen will submit well to nasty deforming unflattering caricatures in the press. Of course she will. We humans are all funny looking. Jim Willie goldenjackass Full article: silverbearcafe/private/11.13/yellen.html
Posted on: Sun, 17 Nov 2013 15:15:26 +0000
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