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Peter Schiff Warns Yellen's Nomination Means Any QE Taper Expectations Are "Delusional"
Submitted by Peter Schiff via Euro Pacific Capital,
Now that Janet Yellen has been named to lead the Federal Reserve the global financial markets should factor out any possibility that the Fed will diminish their Quantitative easing program anytime during her tenure. In fact, financial forecasts should assume that not only is a taper off the table, but that the QE program is now more likely to be perpetuated and expanded.
Unlike her predecessors, Janet Yellen has never had a youthful dalliance with hawkish monetary ideas. Before taking charge of the Fed both Alan Greenspan, and to a lesser extent Ben Bernanke, had advocated for the benefits of a strong currency and low inflation and had warned of the dangers of overly accommodative policy and unnecessary stimulus. (Both largely abandoned these ideals once they took the reins of power, but their urge to stimulate may have been restrained by a vestigial bias against the excesses of Keynesianism). Janet Yellen, who has been on the liberal/dovish end of the monetary spectrum for her entire professional career, has no such baggage. As a result, we can expect her to never waver in her belief that stimulus is the answer to every economic question.
The Federal Reserve was originally charged with the single mandate of maintaining price stability. In recent decades that mission evolved into a dual mandate of seeking price stability and full employment. I believe that a Yellen led Fed will return once again to a single mandate, but now it will focus only on employment. Based on her clear beliefs in the ability of dovish monetary policy to relive human suffering she will be inclined to dig in her heels into the ongoing QE program more than anyone else President Obama may have appointed. This is terrible news for the U.S. dollar and the U.S. economy.
For now at least the crisis in Washington has squelched any immediate discussion of a taper in the remaining months of 2013. Any predictions that a Yellen-led Fed will somehow show more resolve towards responsibility in 2014 or 2015 should be looked at as delusional.
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Bullish for the 1%. Shittish for everyone else.
Bullish for precious metals... and you don't need to be the one percent to own it.
https://comparesilverprices.com/images/janet_yellen_head_printer.png CTRL +P'in Like A Bo$$
I'm not at all sure she makes her own decisions.
The Fed has OWNERS, even though we don't know who they are.
The bag-woman will now assume her position.
Imagine Yellen as the dumbest carpenter in a world full of massive economic problems wherein she'll interpret each as a disobedient nail.
Her hammer = CTRL+P
At least Bernanke was allowed to retire. Everyone knows that when Old Yellen gets too frothy Pa will take her out back...
Any expectations of QE tapering are delusional. If Peter Schiff himself were appointed Chairman of the Federal Reserve, he would not taper. And I say that with all due respect.
Why?
Because he couldn't. No one can, and no one is going to.
We all know how this ends.
Perhaps with foreign bond holders getting pissy?
She is a midget Romulan.
WmB7 and a golden Romulan helmet for Yellen of Troy. She shall launch a thousand QEs with the loosest...policy yet.
Too bad she doesn't use a cloaking device --- THAT is a face that could sink 1000 ships!
MOAR yellen!
ROR yellen!
New Chairsatan, er, Chairsatanwoman.
Trust a woman to fuck it up...
ChairSuccubus
Well, we all can't be eye candy but one can make a bit of an effort. I guess when you hold the world by the financial testicles this kind of thing takes a back seat.
Miffed;-)
Peter Schiff, Bill Fleckenstein, et al are a bunch of boomer doomer douche bags...
You have met the douchebag, and he is you.
Keep Choomin' Teddy.
Teddy, reality became boomer doomer!
Teddy only has supervised visitation privileges with reality.
Teddy's tentpole is firmly planted.......
he's now a sundial and it's 4:20 all day everyday
Congrats to CH1, with the only perceptive comment in this thread. Yellen will do precisely what she's told to do. It may be that the plan is to install a "dove," and maximize the number of bagholders who will BTFATH, allowing the big boys to exit at the top. Then she'll follow orders to crash it with a severe taper, and the big boys swoop in and buy assets at cents on the dollar. You need to keep in mind that the wealthy don't want hyperinflation - they have more to lose than others do. The move I describe here means the 1 percent win both ways - acquiring maximum stores of wealth and maintaining the value of their dollars at the same time.
I would add that a serious and sustained correction in the stock market would also destroy many pension funds, further flooding the country with desperate people willing to work for almost anything and essentially turning the working poor f/k/a the middle class into the destitute. The End Game is a neo-feudal society. The pieces are in place, the question is timing.
OF COURSE that's the plan. Yellen is endorsed by the cabal to demolish the middle class...leaving the elites to rule the slaves.
If you watch closely, you may glimpse her shape-shifting.
CH1 you stupid ape.....here is what francis_sawyer taught us about ownership of the FED....
''NO... It's NOT... IT knows EXACTLY what it's doing... The FED [is NOT ~ surprisingly ~ a limestone building ~ It's European Jewish banking Families]... It's the same thing that jewish bankers have done for the past 300+ years... When the going gets tough... The jews get PRINTING...''
RIP f_s
francis is still here, just like an illegal he used another ss #.....what kind of fight club do we have if he "had" to abdicate ......he can express any view he wants, u dont have to agree and if ur afraid of his typing, than u are a cunt and need to proceed directly to marketwatch......say it aint so francis..say it aint so...
Most hawks on the Fed are Jews and I'm pretty sure Peter Schiff is as well. Your viewpoint is akin to saying "most of the Democrats in the Senate are white, therefore whites are socialists."
It seems obvious that the owners of the Fed (and everything else) are the big commercial bank major share holders/officers. Like Jamie and Loyd and their friends. They simply visit Pres. 0 and instruct him to hire bag holder lady to provide a plan for maximizing profits on bubble exit. Get ready to eat shit Amerika.
I'm sorry, but I burst out laughing when I read the headline. The Tylers have been really on top of their game recently.
Schiff states the obvious, why is anyone surprised. I did however like his premise that Greenspan and Benanke were hawkish and only changed their spots after taking the reins of power, BullSh*t!
DaddyO
Correct w regard to BB, however Greenspan was a hard currency gold bug back in the day before he made the change from Annakin to Vader.
Yes he was, Greenspan was a gold bug, don't know about BB
"Bullish for precious metals"
That's what I keep thinking and hearing and yet they still suck almost every day.
"What do you mean, 'the Titanic is sinking' "? Poppycock! It's 2:00 AM, and we are still above water! Begone with your fearmongering and conspiracy theories!"
its pretty obvious the pm markets are not honest markets with prices derived from supply and demand.
inflation is good for gold, just because a manipulated gold price does not reflect this does not mean its not true.
by the time golds real values are realised it probably wont even be able to be priced in dollar's anyway.
Gold down 13 bucks on Ol' Yellen... Gold going lower still
Silver got the message a little early, say about 0300 the day before...
DaddyO
QE3 and QE4ever had no positive impacts.
The inflation expectations because of QE did not come true. The money QE creates is not going into the economy, but the financial institutions sell their bonds and receive the freshly printed money and they play with this money in the parts of the financial markets, which perform best: stocks.
With Yellen the frontrunning of the FED could begin and also bonds could begin to outperform again which would bring the interest rates down again. Which would be good for gold, but not directly, only indirectly with lover lower real rates. But also for dividend paying stocks.
Without a self sustaining economy which is creating inflation with credit expansion, massive government spending for the low income households would boost gold.
No they released fed minutes and said TAPER IS ON, then Yellen came out and said "the fed needs to watch out for inflation". All bullshit of course but never underestimate the number of total fucking idiots managing money.
if by 'precious metals' you mean physical gold...I agree..
she wants any more stimulous it needs to come from a dildo, because we are fucking broke.
At least she's hot
Zimbabwenomics or bust!
Mugabewannabe
With a bad case of Gono...
Plenty of Kool-Aid left in the bucket and ink in the printer.
<Full speed ahead and damn the consequences.>
All of DC is delusional so she'll fit right in.
Watch for Yellen haircuts to be the rage at stylish haircuting establishments across DC
Hair may be the only thing they've ever cut in DC.
And, why not? They're FREE!
can't wait for the next bikini waxing craze called a Yellen....
one curl extra long
Each POTUS is worse than the previous one.....each FED chairman is worse than the previous one....each CONgress is worse than the previous one....each bubble is worse than the last one...
Good times :(
Lean Forward!
(and spread 'em)
Each generation is also stupider than the last, per the new OECD test of Americans.
Each test is stupider than the last.
For sure, Ultimate Warrior! So far, it has always been exponential growth of the worst, with no known end in sight. Nothing in human history tells us what it looks like for that runaway to actually hit the wall and bounce off the cliff.
Schiff is right. PEDAL TO THE METAL BITCHEZ!
Yeah, you better buy this dip- it might be the last one your see for a long time. She'll have us at $120 Billion a month by the end of her first year.
I am starting not to care
Was watching youtube clips of George Carlin the other day.
He mentions that he at some point decided to become a spectator because he realized there is no hope.
http://www.youtube.com/watch?v=NxeDKqbRre0
Bullish for Unicorns........
Another insipid empty suit. Peter Schiff should have been the appointment for the FED RESERVE. That would have been a real SHOCKER.
Who has the most "retro" haircut. Peter or janet?
Jim "Interest Rate Observer" Grant (the one with the bow tie AND glasses)
You forgot Ron Paul.
Schiff was on BNN in Canada today and simply demolished the BlowHorn North stooges interviewing him.
Of course, I just tried to retrieve that particular video clip and can't find if anywhere on their site.
Maybe they are afraid of another Bridget Brown moment... "unlike the Dawler, gold isn't backed by anything"
LOL! Yeah, Canadians sure are a hoot with their dawlers and their hawkey, aren't they, eh? It takes a special kind of clueless to be unable to even figure out the difference between the names "Don" and "Dawn", or "stocks" and "stalks".
My mother had a small circle of friends which included a lady originally from Ontario and a man named "Don". The man finally refused to associate with the group, quietly confiding to my mother that he simply could no longer bear being continually referred to as "Dawn" by the Ontario-raised lady. I don't blame him.
I hear that lady now spends most of her time alone in her hoose.
N!'s math is summed up here: Factorial (n!)
good time to sell property?
i got some.
:)
It's never quite the right time to quit heroine: it's Friday, it's my Birthday, I'm going to get laid, it's Monday.
Tomorrow, always tomorrow, or the next day.
Well, I guess we can look at it as an opportunity for a little more time to prep for the inevitable. A few more PMs, upping the ammo stash, adding a battery back up for my solar panels, planting an extra row of vegetables and stocking up a few more necessities. We are living on borrowed time. Every day I appreciate I don't have to hunker down in Survival Mode. Every day I'm intensely grateful for my life and what I have because any day it may be gone. Every night I hug my husband in gratitude he's with me and will support me through this. This bitch has bought me a bit more time. I guess I should thank her.
Miffed;-)
You're a tough ol' warhorse Miffed, truly.
But then, any woman who lasts more than a day on ZH would have to be.
Coming from you, a rugged Alaskan individual, is a compliment to warm ones soul. Truly I am humbled by your kind words. I've been beaten up by you boys a bit but always come back for more. Thank you all for toughening me up. Fiery rugged individuals just titillate me I guess and what other forum out there has such a host? I'm glad we move to the winter months to read more of pirate musings.
Oh, mr Miffed adds for an ol' war horse I'm damn easy on the eyes and a delight in the sack, otherwise he's in complete agreement. ;-)
Miffed;-)
miffed...do you have a single sister, or close relative/friend, that shares your same 'thoughts' on the current situation?? early to mid-30s and preferably easy on the eyes (but not important)..... :)
Jerry, I am sad to say I only have a brother and my daughters are too young for you. All of my 30-40 friends are fully plugged into the Matrix sad to say. You are not alone sharing to me your delemma. Mr Miffed is trying to master the art of cloning ( unfortunately with little success). He figures a few thousand of me and he can retire a wealthy man. My purported rarity is beginning to go to my head and I am contemplating demanding an increase in allowance. ;-)
Miffed;-)
As soon as she is confirmed, the crash can begin. Then we'll see how she puts out. Bernanke was good for a trillion per year. Yellen has suggested "negative" interest rates, which is a direct transfer to the banks. It could be -3%. Beats 2 and 20.
Burnanke = A drug dealer selling you drugs for cheap.
Yellen = A drug dealer paying you to take drugs.
Atleast we getn paid.
I like Schiff, but he hasn't been right about anything for three years. He told people to buy told at 1800.
He told people to buy at 900 too.
True, true.
i've listened and bought at both.....but when I bought at 900 the .gov debt was around 10T....i bought at 1800 when the debt was at 14T....the debt is now up to 16+T and gold is back at 1300.....so, if you believe in the 'theory' of why to own gold then right now is the best time ever to buy gold (the real shiny stuff).....
Buy at any and every price when you have the means. +/-$500/oz will be moot, bro... it's Yellen time!
I said a similar thing about the FED and .gov on another thread a few days ago and got pilloried.
It doesn't matter about PM price when the masses are getting their SSDI, SNAP and EBT payments.
It just guarentees that the trebuchet is fully wound and ready to lauch.
DaddyO
Death Spiral of debt issuance.
If the dollar is going to fall, it's going to fall against the only thing that matters. Oil.
If oil goes to $300/barrel, most of you die, whether you have gold or not.
indeed.
Perhaps but it will not be from lack of bodies piled up around me.
Yep.
She's Lady Macbeth, now out in the open.
The un-Federal no-Reserve Board serves the foreign interests of its private shareholders first, and the USA long after that. It has been an abject failure in its dual mandates: stable prices and jobs.
Since its founding in 1913, the $ has lost more than 98% of its purchasing power, and average American incomes adjusted for inflation read like a crime story. Jobs? Well, we all know manufacturing was off shored to foreign lands, and the American full time worker is an endangered species.
Now, along comes Lady Macbeth out of the shadows to finish off the job of killing the world's only known experiment with a working constitutional republic free of international financier/communist/ zionist diktat, led by the Rothschilds of Germany and Britain who drag along their recruits anywhere that has one of their central banks.
"Out, out, damn fiat."
If Peanut was Fed Chairman they would still print
They are blue bloods in their own inbred insane minds. The color of ink and anonymous digit warfare suits their temperament. Like terrorists, they hide behind civilians, and appoint patsy politicians to take the frontline hit.
Considering that Lee Majors is unavailable I'd say perfect candidate!
During her acceptance speach she mentions 3 items (things like managing interest rates, employment, etc.) the Fed is responsible for in her opinion. Conspicuously absent was "any concept dealing with the protection of currency."
The new $100 bill I got from the bank today will soon be nothing but toilet paper.
The loonie is backed by hard assets, commodities. So, it's got that going for it. You're right to stay clear of USD as much as possible. Old Yeller will finish off the job begun in 1913: ruining the USD.
This is a fucking game of opposites
She's going to do exactly the opposite of what we are all supposed to think she's going to do.
If she was a "dove" (looks more like an owl to me) before, she goes "hawkish" now.
This game has become so transparent. Goldman says "sell the gold"; so they can buy it, and sell it back to the muppets next month. It's all about the flow.
The Fed's private shareholders have played this game for centuries. Information and the manipulation of it is power. See the story of how the Rothschilds became Britain's and world's pre-eminent banking dynasty after Waterloo. Hint: the market sold bonds when it thought Britain had lost, but Rothschild knew Britain had won because his courier got the information first (insider dealing as it would be called today), and bought bonds at the lowest prices...then proceeded to buy up a lot else after the war victory became public knowledge, but most of his rivals were too ruined to be able to profit or compete.
The Fed and its acolytes are servants of the money masters, nothing more. Don't bet on bonds alone this time, though. The insiders adjust their tactics according to realpolitik.
agreed, for almost the whole comment, except for the last part about flow. unless you mean volatility. and the 'owl' thing. ( i live in the neighborhood of owls, and they look magnificent :) ). and the 'game' thing.
i think that with her being a newbie at the helm, and the increasing die being cast from the chorus of other fedittes, this new leader will do what any smart leader would do. allow the chorus a verse or two of action, then, if that succeeds, take a bow as a great leader. if choir fails, then politely say 'i told you so' and then go about the way you really wanted to.
:)
p.s. as to the flow, the mr t's and i disagree. am able to do so, am i, only because a mr. t or two or three, etc took the time to teach me all i know about this stuff. the willingness to disagree, however, is something i brought with me.
:)
She is a hard faced machine, a product of marxist and zionist indoctrination. The USA is a means to achieve the goals set by her money masters, and political heroes...all of whom despise the U.S. Constitution, and Bill of Rights.
And you are right, friend. We still have the right to agree to disagree in these United States of America. At the moment.
"And you are right, friend."
uh, presumptuous there ye be, matee.
non-responsive rambling responses to my comments befriends no one to me.
:)
your previous ramble co-opted me from adding "NEO" to the top of my first comment.
to direct my attention to him, not you : "agree".
:)
Nope. Wrong on all counts. And it matters not to me whether we agree or not. Note that your comment appeared immediately below mine, so I naturally replied as a polite person. It won't happen again.
thank you. you sound well intended.
fyi, when one replies to a comment it is indented once. when one replies that comment, it is indentied again.
my original comment was not indented to yours, but to the original comment.
i assumed you knew that i wasn't responding to you, but to neo, but i see i was in error.
sorry.
:)
I'm sure Paul Volcker did not make to much noise about his intentions before getting the job, but at this point, I think Yellen will not be a surprise. I think she'll probably lobby Congress to get the authority to buy bonds straight from the Treasury, short-circuiting the market.
Obomba rejected Paul Volcker's wise counsel. I think Yellen is proof that her masters think they have the upperhand, and no longer need to pretend to care about the U.S. or USD as they have mostly shifted their core assets off to the East.
At this point, Volcker is too senile to be anything close to wise and the much spoken of Volcker rule is missing something very important: 15%+ fed fund rates which ought to clean the clocks of speculative debt crankers.
Your name and picture tell me that you are young, and the young are the easiest to trick. The money masters have shifted their core assets to the East. You are merely collateral damage.
It'll be interesting to see if the populous East is as easily asset-stripped as the West was.
Your focus of attention on my "name" and flashy image shows you have little attention timespan and can be easily distracted. That probably makes you old.
No one said your image was flashy......... dickbreath.
The fed is going to keep printing until they own all us debt, effectively giving us 0 interest loans forever, except in a few years when some scandal is filling the news stations they will quietly forgive the debts.
...User...,
That suggests that the Fed is magnanimous when it has shown by all its failings on price stability and employment that is a robber baron, swiftly moving from one global village to the next.
And the US dollar will be worth less than the 0% interest loans. The end.
According to the charter, U.S. Taxpayers are on the hook for any losses the FED encounters. Keep that in mind. Plan accordingly.
well if history is any guide (we've been devaluing for thirty years now...and on a massive scale over the past ten when all those "hard money" people were in charge) then she probably will only do better. the last time the dollar did well actually had a Democrat in the White House and Republicans in charge of Congress. we'll see. a gold standard still remains the best and only way to go...but 12-15 million barrels of oil a day remains a solid second. if and when we get there of course. obviously higher real rates across the board for cash are a net positive going forward. the US has a savings problem (not enough) and there is no better solution than revaluing savings relative to consumption. the market itself is already doing that so Ms. Yellen need not be concerned on that front. we'll see how equities do going forward. i welcome a correction...but will feel lucky if we even get that. (and no BofA...we have not had a correction yet.)
Sad but true!
Obonzo's F-Troop is taking shape with a ditzy Jewish American Princess running the US central bank.
Bernanke can't wait to hand her the keys and get out of town before the house of cards collapses.
It's all looking sweet for the good and the greedy. What could possibly go wrong, go wrong, go wrong??
Yellen is odds on to beat Zimbabwe Central bank head for biggest hyperinflationary event.
Bag lady she most certainly is ... the money power has left the building.
The only fucking mandate the Fed has- is survival and interest skimming for eternity. The rest is just bullshit for dupes.
Yellen to Be Named by Obama as First Female Fed Chairman - A Universal Truth! https://www.youtube.com/watch?v=7DSCFkw3xms
There was never any chance that the Fed was going to taper and so it was delusional for PS to believe there was. What we are being told about the amount that the Fed is adding to the money supply is also delusional. With China and others exiting the dollar the Fed has had to step up and is actually pumping far more in than we are being told (Jim Willie). This is not creating ripples because it serves China's interests to maintain the illusion that the USD is only slightly ill rather than telling the truth.
At which point did "head of the board" = dictator?
Its a board of bank representatives effectively... they are going to do what they want to maintain their profits regardless of whomever is at the helm.
Ah, great, except it fails to take into account Yellen's very big U-Turn;
"Janet Yellen, in her first public remarks as the Federal Reserve’s vice chairman, said low interest rates may give firms the incentive to engage in excessive risk-taking.
“It is conceivable that accommodative monetary policy could provide tinder for a buildup of leverage and excessive risk-taking in the financial system,” the 64-year-old central banker said in a speech today in Denver.
Enlarge image
Federal Reserve Vice Chairman Janet Yellen. Photographer: Andrew Harrer/Bloomberg
Yellen warned that Fed policies may in some cases be encouraging firms to “reach for yield” and could present officials “with difficult tradeoffs” if “emerging threats to financial stability become evident.”
http://www.bloomberg.com/news/2010-10-11/fed-s-yellen-says-accommodative...
Fucking cunt never had a real job in her entire life.
The Fed
Gives themselves money and pretends they're giving it to you.
Pretends the policy it to benefit you and it benefits them.
Never actually says anything direct or honest because they are neither.
Will have to be put down like a snapping dog with distemper or you will.
Maybe her auto mechanic will make a mistake and she'll have an accident.
"Max Headroom" for Fed Chair. That would be a more honest approach.
Or maybe Stanley Ipkiss's alter ego in "The Mask". THAT'd be bullish!
BINGO PETER. AS PER USUAL. RIGHT ON THE MONEY.