Translating Yellen-Speak into Golden-Speak
The comments below are an edited and abridged synopsis of an article by Matthew Piepenberg
Piepenberg has had some fun deciphering the past, current and future implications of forward guidance from a misguided crop of central bankers, most notably Alan Greenspan, Ben Bernanke, Jerome Powell and, of course, Janet Yellen. Translating Yellen-speak into blunt speak tells us a lot about the future.
Up for discussion: The open and obvious debt crisis; tracking the debt trail; translating Yellen is quite simple—inflation ahead; debt as a growth policy; magical money, dying money; the new Bretton Woods; that too is rich; exploiting a crisis, hiding from responsibility, justifying excess; same ol’ same ol’; inflation, repressed rates and more currency debasement ahead.
“Given the foregoing and now undeniable debt crisis and openly telegraphed-changes to come (viz: inflation, currency debasement and artificial yield repression), the foreseeable future is plain to see for any who have eyes to see it.”
“As for rates and debt, former IMF Chief Economist, Olivier Blanchard, is as ‘insider’ as insiders can get, and he’s no fool when it comes to bailing out his own past mistakes.”
“If debt is too high, then he knows it’s essential to keep the cost of that debt (interest rates) artificially stapled to the floor.”