Fed Chairman Yellen and the Coming Dollar Crisis

Phoenix Capital Research's picture


Janet Yellen will be the new Fed Chairman come January 2014.


Yellen is the head of the San Francisco Fed. There is a lot of misinformation about her on the web, but the fact of the matter is that she is a career academic with absolutely zero banking experience or business experience.


This puts her in the same boat as Greenspan and Bernanke. Indeed, the only Fed Chairman we’ve had in 50 odd years with any banking experience is Paul Volcker.


With that in mind, it’s important to note that Yellen has been one of the biggest proponents of QE as a monetary policy. In 2011, she stated that QE 1 and QE 2 would create a total of the million new jobs by the end of 2012. Suffice to say, the woman does not understand monetary policy or economics as they pertain to the real world.


And she will likely inherit a US Dollar crisis.


The US Dollar is preparing to stage a significant breakdown. The uptrend that has been in place since 2011 has already been broke (blue line) and we has already broken key support (black line) briefly last month.



The Fed’s $85 billion per month QE 3 and QE 4 programs are very anti-Dollar. However, on the opposite end of the global currency see-saw is the Euro which comprises 56% of the US Dollar index.


A lower Dollar means a higher Euro. A higher Euro hurts European exports (over 50% of Germany’s economy is export driven). So QE could very well force the ECB to act to push down the Euro. This dynamic will fuel much of the monetary issues of the Yellen-Fed era.


For a FREE Special Report outlining how to protect your portfolio a market collapse, swing by: http://phoenixcapitalmarketing.com/special-reports.html


Best Regards,


Phoenix Capital Research





Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
starman's picture

Wasn't Yellen the coin lady at AIG ? In the good'ol days?

akak's picture


A lower Dollar means a higher Euro.


When will these idiots ever finally realize that the contrived, highly artificial, outdated and hopelessly limited (so-called) US Dollar Index does NOT define the REAL value --- the purchasing power --- of the US dollar, nor of ANY other currency either?  The dollar and the euro do NOT sit on some imaginary teeter-totter, whereby as one goes up the other automatically goes down.  Yes, their exchange rates will fluctuate, to a degree, in that manner, but exchange rates are NOT measures of purchasing power IN ANY WAY.

GOD I am sick of this fucking "US Dollar Index" nonsense already!

TheFourthStooge-ing's picture

akak said:

GOD I am sick of this fucking "US Dollar Index" nonsense already!

A more realistic way to view the dollar value over time is to rotate the above chart clockwise by 90 degrees.

akak's picture

US Dollar Indexifying orientationalism is indeed the mattering thing, the most crustationalized bit of the non-mattering thing.

TheFourthStooge-ing's picture

Indextry US 'american' citizen dollarism tells the Peoples Liberation Opium Parlour of the masses invigorously.

akak's picture

Upping the prodigious elaboration of obscurantist citizenism and the parangongs of offuscationalizing progrational US 'american' monolizing of scrapesgoatery, ah, that is it in the shell of the algebraic coconut with steadfast invigoration of the dangdang.

MFLTucson's picture

She is just another clown who will sell the American people off to the banking cartel till the collapse Bernanke and Obama are reponsible for happens.

Seer's picture

"the collapse Bernanke and Obama are reponsible for happens."

Yeah, it just welled up when Obama stepped on to the throne.

Party pussies just can't seem to hide their colors...

Seer's picture

"with absolutely zero banking experience"

Wasn't it the "professional" banking industry with all their vast sums of experience that got us to this?

Really, if the bankers themselves didn't want Yellen then I very much doubt that we'd even be talking about her.

algol_dog's picture

It's Phoenix Capital's 19th nervous break down ...

lunaticfringe's picture

On the job experience tends to be vastly over rated. Just look at the sweeping success of our President.

Seer's picture

Where's GW Bush when you need him to proclaim that someone's "doing a heck of a job" when you need him?

rlouis's picture

At first the collapse was slow.   And then it was fast.

AngelEyes00's picture

I think she'll up QE to 115b a month.  Why, because she will want to change the amount to make her own statement, to help define her position and to make it seem like Bernanke was actually being too conservative.


Seer's picture

With inflation they'll HAVE to adjust the value/volume of that pump!

joego1's picture

We are doomed. Dive the Chevy to the levee.

kchrisc's picture

She will faithfully execute her orders for the band of thieves just like her predecessors.

RaceToTheBottom's picture

It is probably good that she is in place.  She will act more predictably than Summers (except for his consistent WS whoring).

The end is probably closer now that she is in place....

El Hosel's picture

"she is a career academic with absolutely zero banking experience"... No problem there, Wall Street Bankers will tell her what to do.

RaceToTheBottom's picture

Yep, Wall Street is very predictable in these matters