Janet Louise Yellen’s education and accomplishments certainly qualify her for the position of Chairwoman of the Federal Reserve Board. I’m not here today, to disparage her credentials, any more than I’m here to support the preposterous, despotic and oligarchic nature and purpose of the Federal Reserve Board. I’m simply going to present a case for the opinion that after years of existence in the lofty and thin air of Brown, Yale, Harvard, and Berkeley Universities and three and a half years into a four year term as head of the Federal Reserve Board, the thin air has taken its toll and manifested itself in a form of anoxia, causing a feeling of clarity, but actions that are delayed and diametrically opposed to logic. Her lack of exposure to the real world and that of her predecessor has delayed appropriate action to the point of no return and her and the administration’s unbridled support of an unaccountable banking system has the country in a precarious, vulnerable and extremely dangerous position.
Following yesterday’s testimony before the banking committee, where Yellen stated that she does not see another financial crisis brewing, Christine Legarde, the International Monetary Fund’s Managing Director said that she would not at all rule out another financial crisis in her lifetime, indicating that the comments made by the Fed Chair in her report may have been premature and overly optimistic. Yellen’s prepared statement was interpreted as “dovish,” indicating that they were going to slow on hiking rates, sending the DJIA to a new high. But she also stated that in an effort to normalize the balance sheet, the Fed would start liquidating bond positions, which essentially is a back door rate hike, because as bonds go down, rates go up.
Back in June, when the Fed raised the interest rate, economist Jim Rickard’s pointed out that before the last financial crisis, the balance sheet was about $800 billion. They’ve printed and inserted $4.5 trillion dollars in the last eight years and now they want to “normalize” the balance sheet. He’s pointed out that you can’t have your cake and eat it too. The current interest rate stands at 1.25% and to stimulate the economy it needs to be above three percent. At the same time, research indicates we could be heading into a recession, which means we need to reduce the interest rate by 3% to get out. They want to do both, but obviously they can’t. And unfortunately, doing nothing does not allow both to cancel each other out, it simply doubles the trouble. Regardless, we’re at the point of too little, too late.
I’d be impressed if we were able to stave off the inevitable financial collapse for five years, unfortunately with today’s nanotechnology trading capabilities, this time around the collapse could occur over a period of five minutes. It will be over before most investors realized that it happened. That’s why the best way to avoid financial decimation is by way of protection with physical precious metals. Stop thinking of it as any other financial investment. It’s a financial life raft and insurance for the future. Today’s depressed prices are just a phenomenal bonus. But today’s availability is the most important reason not to wait. Secure your financial future with physical precious metals. Fantasyland is nowhere to live.