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Which Bird Will Janet Yellen Flip To Markets On Her Way Out The Door?
Via Kevin Muir of “The Macro Tourist” fame
The past three Fed Chairs before Yellen all had th
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I worry about the Fed tightening too quickly…… the economy is growing but it is brittle/overleveraged. As far as bitcoin goes, a real currency should not move 20% a day one way or another. It is a speculative vehicle and vehicle to launder money, and steal from other users; since there is no underlying asset backing it up, not even a government behind it.
History tells us that Janet is a dyed in the wool dove so it would be an extreme surprise for her to sound truly hawkish. Alas, I fear that your larger point about the ongoing debasement of the currencies will continue for a long time ahead. In fact, my fear is that within the next ten years we are going see the end of cash and everything move electronic. In that scenario, every government exerts complete control over their citizenry, something they very much desire. And just as bad, I would anticipate negative interest rates being a permanent situation. After all, if government’s figured out that they could extract additional revenues via negative interest rates and there were no alternative places to store wealth, what do you think they would do?
Dystopian? Yes, alas realistic as well I fear.
Whenever central banks have pursued cheap money it always has led to the same thing – a proliferation of stupid business ideas that would never see the light of day under normal capital conditions. Unfortunately they typically wind up with a systemic connection to the economic system and the knock-on magically makes $Bn’s (now $Tn’s) disappear.