Using cautious terminology Janet Yellen said today “considerable slack” in the labor market i.e. disastrous economy, is evidence that the central bank’s unprecedented accommodation will still be needed for some time to put American’s back to work. “This extraordinary commitment is still needed and will be for some time, and I believe that view is widely shared by my fellow policy makers at the Fed” Yellen said.
Of course as usual U.S. stocks climbed on the “great” news. Who cares if the stock market bubble continues to be inflated as long as we are making money today? Let’s just address that issue when it bursts. By the way, all bubbles without exception eventually burst. Once upon a time Wall Street performance was indicative of the U.S economy but this is clearly no longer the case.
Basically to reiterate what we continue to say is the Fed has backed itself into a corner and it is searching for options to blame anyone but themselves when the powder keg blows. The insanity of monetizing debt is all the Fed has left on its bargaining table; and possibly another war.
To the chagrin of mainstream media nothing has changed in Fed monetary policies with its new mouthpiece. To think that Janet Yellen or any other Fed chairman has any real authority with the central bank is no different than believing Washington rule’s the Fed. The debtor is always servant to the lender.
Gold Goliath is not your typical gold dealer.