{"id":58270,"date":"2021-06-15T07:44:50","date_gmt":"2021-06-15T12:44:50","guid":{"rendered":"https:\/\/olduvai.ca\/?p=58270"},"modified":"2021-06-15T07:44:50","modified_gmt":"2021-06-15T12:44:50","slug":"translating-yellen-speak-into-golden-speak","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=58270","title":{"rendered":"Translating Yellen-Speak into Golden-Speak"},"content":{"rendered":"<header class=\"c-blog-article__header\" data-aos=\"fade-up\" data-aos-delay=\"200\">\n<h3 class=\"c-blog-article__title\"><a href=\"https:\/\/goldswitzerland.com\/translating-yellen-speak-into-golden-speak\/\">Translating Yellen-Speak into Golden-Speak<\/a><\/h3>\n<\/header>\n<div data-aos=\"fade-up\" data-aos-delay=\"200\">\n<p>Given the increasingly politicized interplay (cancer) of central bank policy and so-called free market price discovery, it\u2019s becoming increasingly more important to track the actions of central bankers rather than just traditional market signals alone.<\/p>\n<p>Like it or not, the Fed\u00a0<em>is<\/em>\u00a0the market.<\/p>\n<p>Toward this end, we\u2019ve had some substantive fun deciphering the past, current and future implications of \u201cforward guidance\u201d from our openly\u00a0<a href=\"https:\/\/goldswitzerland.com\/fed-heads-lose-their-head\/\"><strong>mis-guided crop<\/strong><\/a>\u00a0of central bankers, most notably\u00a0<a href=\"https:\/\/goldswitzerland.com\/patient-zero-of-the-bubble-pandemic-alan-greenspan\/\"><strong>Greenspan<\/strong><\/a>, Bernanke and\u00a0<a href=\"https:\/\/goldswitzerland.com\/gold-is-laughing-at-powell\/\"><strong>Powell<\/strong><\/a>.<\/p>\n<p>But let\u2019s not forget Janet Yellen.<\/p>\n<p>As we see below, translating Yellen-speak into blunt speak tells us a heck of a lot about the future.<\/p>\n<p id=\"h-the-open-and-obvious-debt-crisis\"><strong>The Open and Obvious Debt Crisis<\/strong><\/p>\n<p>Back in 2018, Janet Yellen (former Fed Chairwoman and current Treasury Secretary, eh hmmm) along with Jason Furman (current Biden economic advisor) observed in a\u00a0<em>Washington Post<\/em>\u00a0Op-Ed that, \u201ca U.S. debt crisis is coming, but don\u2019t blame entitlements.\u201d<\/p>\n<p>As I like to say, \u201cthat\u2019s rich.\u201d<\/p>\n<p>As in all things economic, the motives and thinking coming out of DC are largely political, which means they are self-serving, partisan and predominantly disastrous.<\/p>\n<p>As for translating Yellen\u2019s political-speak into honest English, the motives for this 2018 warning were two-fold: 1) Yellen and Furman were making a partisan attack on Trump\u2019s then $1T budget proposal, and 2) Yellen actually believed what she said and that the US was indeed careening toward \u201ca debt crisis.\u201d<\/p>\n<p>In fact, we were\u00a0<em>already<\/em>\u00a0in a debt crisis in 2018, a crisis which has simply risen to much higher orders of magnitude in the three short years since Yellen\u2019s \u201cwarning\u201d was made.<\/p>\n<p>Stated otherwise, Yellen will get her debt crisis. It\u2019s ticking right in front of her.<\/p>\n<p id=\"h-tracking-the-debt-trail\"><strong>Tracking the Debt Trail<\/strong><\/p>\n<p>Ironically, the most obvious metrics of the current and ever-expanding debt crisis began just months after Yellen\u2019s infamous Op-Ed.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Translating Yellen-Speak into Golden-Speak Given the increasingly politicized interplay (cancer) of central bank policy and so-called free market price discovery, it\u2019s becoming increasingly more important to track the actions of central bankers rather than just traditional market signals alone. Like it or not, the Fed\u00a0is\u00a0the market. Toward this end, we\u2019ve had some substantive fun deciphering [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,195,4106,303,1849,18507,451,31019,534,3650,2202],"class_list":["post-58270","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-debt","tag-debt-crisis","tag-fed","tag-financial-markets","tag-gold-switzerland","tag-janet-yellen","tag-matthew-piepenburg","tag-monetary-policy","tag-us-federal-reserve","tag-us-treasury"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=58270"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58270\/revisions"}],"predecessor-version":[{"id":58271,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58270\/revisions\/58271"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=58270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=58270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=58270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}