by Peter Schiff, EuroPacific Capital:
Janet Yellen channels Billy Flynn? Last week the Fed Chairwoman treated us to a master class of rhetorical misdirection which produced some memorable examples of doublespeak, including the soon to be classic “Just because we removed the word ‘patient’ does not mean we’re going to be ‘impatient.”‘ But perhaps more surprising than her new heights of verbal dexterity was the market’s euphoria at being so blatantly manipulated. Never has the financial world enjoyed a lie so thoroughly.
By simultaneously claiming to be both aggressive and defensive, and to be moving forward even while standing still, Yellen positioned the Fed as being all things to all people, thereby igniting a rally in all asset classes at the same time. Stocks, bonds, gold, foreign currencies, all went up when Yellen took to the podium. While this may be the way to win friends and influence people on Wall Street, it’s no way to finally put the economy back on the path to a sustainable recovery.
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