Yellen’s ‘arranged marriage’ to the Fed
“As I started this note, Mrs. Yellen’s appointment is effectively an ‘arranged marriage’ between the Treasury and the Fed. Such is a political move by the Biden Administration to ‘grease the wheels’ so that monetary liquidity readily flows into the markets. Given Ms. Yellen’s politics and policies, such will inevitably lead to a repeat of past failures. We should expect to see current policies accelerated as we continue down the path of ‘Japanification.’”
USAGOLD note: Lance Roberts sees the economic future under the Powell-Yellen economic team as disinflationary, or the same old, same old – quite a different take from the inflationary maelstrom predicted by a good many others. Such a future is likely to include sudden credit breakdowns, heightened systemic risks and more crises like what we experienced post-2008. Gold and silver have been reliable stores of value under such circumstances.
Repost from 12-22-2020