Awareness of Fed Credibility Problems Going MainstreamBy Clint Siegner Yellen has spent more than a year floating the idea of negative rates, so it is no surprise she is hustling the ludicrous policy once again. In fact, very little of what she said Friday is new. It was the usual mess of contradictions. She started with a familiar trope about the economy being close to escape velocity. The Fed chair said she expects to wind down stimulus soon. She then followed by admitting the Fed is currently in a lousy position for handling the next crisis or downturn. Given interest rates are already near zero, officials would need to push them into negative territory. And they should consider buying other types of assets. We also know from prior statements that Yellen views helicopter money is a legitimate tool, an extreme measure which entails printing money and dropping it directly into the hands of consumers. Many question whether the arrogant and enterprising bankers at the Fed actually recognize some limit on what they can do. Regardless, Yellen didnt specify what she had in mind so we are left to speculate. Maybe she thinks they should buy stocks. Or perhaps she wants to throw another life preserver to Wall Street by sopping up failing subprime car loans or bad oilfield debt. If there was anything new and interesting last week it was an article by Jon Hilsenrath, who covers the Fed for the Wall Street Journal. It is safe to say he represents the establishment view. At long last, there are signs that disdain for the Fed is moving beyond the community of precious metals investors and free marketeers and into the mainstream. Hilsenrath suggests the Once-revered central bank failed to foresee the crisis and has struggled in its aftermath, fostering the rise of populism and distrust of institutions. He runs through just how badly and how often Fed officials have missed the mark with regards to forecasts. He talks about flawed models which overlooked important variables. And he quotes Fed officials expressing self-doubt, for example wondering if todays low interest rates may actually be encouraging people to save more instead of borrowing more as hoped. Its a long way from being a thorough critique of a more complete list of Fed sins listed here: But Hilsenraths critique is also a long way from the religious reverence the mainstream and the financial press lavished on the Fed in years past. So thats a start! The bottom line is Yellen is clearly ready to implement even more destructive and bizarre policy tools. Her ideas for restoring prosperity include forcing savers to pay their banks to hold their savings and printing up money to buy an even wider array of whatever junk Wall Street would like to sell. Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 Dealer of the Year in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs. wow they are crazy,nutjobs all of them. I do not question their idiocracy. The unholy baphomet crowd has stolen the health ( bogus medicine, vaccines and gmo ) and the wealth of the world. Their pump and dump 7 year plan is a failed policy. I support an audit of the Fed, truly federalizing it and moving it under the Treasury Department. BUT, who would run the show at Treasury? HOW would they run it and would they be any better than the brigands and scoundrels at the Fed now? Need some imput. Thanks. your system is broken and needs to be changed. The Founders were able to arrive at a Constitution and later a Bill of Rights without the duress of other countries exerting their will directly or indirectly over them. That would come a bit later during the War of 1812. Yes, this is going to take some housecleaning after over a century of globalist influence and all the vested interest that has overtaken Washington. I dont think we have much chance of rewriting our foundational docs without duress. The key is probably to shrink the size of government and the taxes it exacts on us to make the pie so small that it is of little interest. We will also have to repurpose what agencies would remain to focus on the general benefits to the nation and not to special interests. US Code should be shrunk down to a few hundred pages, from tens of thousands of pages. Waxing poetic now. Thanks for your comments. good answer:) The TPP completely destroys the sovereignty of Nations and turns them into slaves of the Central Bankers, who stole the Power to Create the Currency from We The People, and now use it to bribe all the politicians. The TPP is 100% One World Government. It MUST be STOPPED NOW !!! 