30yr yield Continuum predicted Yellen’s inflationary jawbone

Yellen says inflation and interest rates are “too low” Straight from the Bizzaro World comes Treasury Secretary Janet Yellen, wooing inflation and the higher interest rates that would attend it. Higher interest rates would be good for the country, Treasury Secretary Yellen says “We’ve been fighting inflation that’s too low and interest rates that are too low now for a decade,” she said. She added … Continue reading 30yr yield Continuum predicted Yellen’s inflationary jawbone

Yellen Rides Into the Sunset

From NFTRH 477: Bring on FOMC! Aside from providing a potential exclamation point to the gold sector correction, this week’s (Dec. 13th) rate hike will serve as Janet Yellen’s last policy move. My personal opinion is that she has been the best Fed Chairman in my market-focused experience. She just humbly goes about her business in a measured way, unlike the constantly self-promoting inflator, Greenspan … Continue reading Yellen Rides Into the Sunset

twisty the clown

Yellen: Deeper Down the Rabbit Hole We Go

Where once Alan Greenspan was vilified for dropping interest rates too low for too long and thereby inflating a credit bubble (before his bouncing baby bubble forced him to try to head things off at the pass, eventually jacking the Funds Rate back up to 6%), today these very scary clowns talk boldly about buying stocks and other risk assets in order to keep the … Continue reading Yellen: Deeper Down the Rabbit Hole We Go

twisty the clown

Why the Convoluted Message From Yellen?

Why the tough talk out of one side of her mouth and ‘other policy tools’ language out of the other (ref. Yellen Lays Out Tools… )?  Oh, I don’t know.  Maybe it has something to do with this… The stock market has merrily followed money supply aggregates upward since 2009.  When money supply decelerates the market corrects.  When money supply ramps upward the market ramps … Continue reading Why the Convoluted Message From Yellen?

Janet Yellen

[edit] Ah, she just mentioned the high “debt to GDP levels” in the Q&A.  Thank you sir!  Point made. She just jawboned QE 4, which is why I decided to make a post about the speech.  She did not mention “QE” but hinted about buying T bonds in the absence of bullets left in the Fed Funds rate chamber. The theme running through this waffling … Continue reading Janet Yellen

alice

Fed’s Bag of Tricks: Op-Twist 2?

Yesterday we reviewed the Scariest Chart in the World, an overly sensational tongue in cheek title for a chart that has bearish historical implications for the S&P 500.  Here it is again.  Whether the Fed is looking at this exact combination of data points or something similar, you can bet they are aware that things have come to the brink.  The spread in the bottom … Continue reading Fed’s Bag of Tricks: Op-Twist 2?

Yellen Greatly Concerned About Inequality

So am I and so are most decent people.  So bravo Janet, you are a decent person.  You are greatly concerned about inequality in this richest nation on earth.

Yellen says she’s ‘greatly’ concerned by rising inequality

Now let’s work the details…

“It is no secret that the past few decades of widening inequality can be summed up as significant income and wealth gains for those at the very top and stagnant living standards for the majority,” Yellen said in a speech to a conference on inequality sponsored by the Boston Fed.

It is also no secret that manipulating short-term interest rates toward zero kills regular peoples’ ability to save.  It creates and furthers a wealthy investor class directly at the expense of the public, who have traditionally been savers.

Continue reading “Yellen Greatly Concerned About Inequality”

ZIRP Up Next?

Everyone expects Janet Yellen to be a rolling over, inflationist stooge just like they did Ben Bernanke.  Bernanke came on board after Alan Greenspan had taken the Fed Funds rate up to around 5% if I remember correctly.  Inflationists and gold bugs thought they had it in the bag when ‘Helicopter Ben’ assumed control.

Indeed, Bernanke did what he was supposed to do (per the ‘Helicopter ‘Ben’ script) as systemic stresses began to gather in 2007, addressing that pesky Funds rate, culminating in December, 2008’s official ZIRP (zero interest rate policy).  Here again is the chart showing the S&P 500’s ‘Hump #3’ attended by this most beneficial monetary policy.

spx.irx

As noted again and again, the much trumpeted ‘taper’ of QE is not only not a negative for the economy, we have made a strong case that its mechanics are actually a positive, in the near term at least.  But putting ZIRP on the table would be a whole different ball of wax.

Continue reading “ZIRP Up Next?”