In my quest to report TRUTH, I constantly seek out the handful of “good, smart people” in our “shadow world.” Allying with those that not only know what they’re talking about – but have equally good intentions regarding your well-being, should be your top priority in the increasingly malign financial world; which is why, thankfully, I work for Miles Franklin.
Over the past two years, I’ve highlighted some of the industry’s best writers – including Brent Johnson, J.S. Kim, and Jeff Nielson. Some have been around PMs as long as I, while others are relative newcomers to the scene. Irrespective, the “fraternity” of real money advocates is both growing and broadening; and thus, I’m pleased to introduce the catalyst for today’s article – the talented and devoted blog writer Michael Snyder.
Now that the Fed’s “no taper” decision is set in stone, the future of the Fed itself is once again in question. Larry Summers, Donald Kohn, and Tim Geithner have all withdrawn their candidacy to be the next Fed Chairman, leaving only current Vice Chairman Janet Yellen as a legitimate contender. Helicopter Ben’s absence from the Jackson Hole symposium validated speculation he will not be re-appointed; and thus, it’s only a matter of time before Yellen is appointed to a four-year term commencing in February.
Readers are well aware of how “Abenomics” have set Japan on a crash course with imminent HYPERINFLATION; that is, if they don’t default on their crushing debt load first – or become irradiated by the expanding Fukushima fallout. Shinzo Abe, who miserably failed as Prime Minister from 2006-07, was somehow re-elected in 2012 under the same loose-money platform; and since then, has vowed to double the Japan’s money supply in just two years. Real GDP has barely budged, inflation has surged; and thus far, the only benefactors have been the handful of investors owning government-supported stocks.
Here in the States, Snyder coined a term that I believe will become a household word as stagflation accelerates in 2014; i.e., Yellenomics. In other words, the American equivalent of Abenomics; as “uber-dove” Yellen works her MONEY PRINTING magic in the terminal stage of the dollar’s reign as world’s “reserve currency.”
Alan Greenspan famously declared that economists “cannot detect a bubble until after it has burst”; and as late as May 2007, he “didn’t expect significant spillovers from the subprime market to the rest of the economy.” One-upping his mentor, Ben Bernanke in 2010 said it’s “extraordinarily difficult to know in real time if asset prices are appropriate” – and in 2012, that “evidence suggests monetary policy did not play an important role in raising housing prices.” Heck, just this morning, the aforementioned Mr. “Potential October Taper” himself – James Bullard – said past bubbles were “gigantic and obvious,” but this time around, he sees NONE. As for Janet Yellen, she told the 2010 Financial Crisis Inquiry Commission:
I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.
–Zero Hedge, August 14, 2013
And thus, yet another clueless government lackey is about to take the reins of the world’s most dangerous institution – which care of its insane policies of the past five years, is on the verge of losing any remaining shred of credibility it still has. Worse yet, the heir apparent is not only the most dovish of ALL current Fed governors, but was instrumental in the Fed abandoning its “dual mandate” of (paradoxically) controlling both inflation and unemployment in support of an essentially “sole mandate” of promoting economic growth. In other words, if need be, she’ll take the Japanese route of abandoning inflation control in lieu of fostering “growth” via unabated, accelerated MONEY PRINTING. Not that she has much choice in the matter – as the fiat Ponzi scheme MUST grow larger to survive. However, if the government’s goal is to DESTROY the Fed’s credibility as quickly and spectacularly as possible, there can be no better method than instituting “Yellenomics” come February.