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CREDIT BUBBLE BULLETIN
A surreal Yellen show
Commentary and weekly watch by Doug Noland

Watching Federal Reserve chair Janet Yellen's televised appearance before the Economic Club of New York on Wednesday just seemed surreal. Contemporary central bankers' experiment with monetary inflation has spiraled ominously out of control, yet the new Fed chair was welcomed in New York with joy and reverence. She was repeatedly commended for delivering



such a clear message. Dr Yellen smiled.

A controlled Q&A had questions coming from Goldman Sachs' Abby Joseph Cohen and Harvard economist Martin Feldstein. After lavishing praise upon Dr Yellen, Goldman's Cohen asked a softball question about the unemployed. Dr Feldstein took his turn, pitching his softball on how the Fed might respond in the event of higher-than-expected inflation. The Fed chair provided the typical canned response and Feldstein responded that he was "comforted". I found the whole exercise discomforting: part of history's most sophisticated and elaborate doctrine of inflationism.

It would be appropriate these days for the Fed to be under intense scrutiny. But with securities prices basically at all-time highs and "The Street" again showered with "money", there will be no tough questions from the Big Apple crowd. More ...

Doug Noland is a market strategist for the Prudent Bear Funds.

(Republished with permission from PrudentBear.com. Copyright 2005-2014 David W Tice & Associates. All rights reserved.)





 

 

 
 



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