July 21, 2014

Janet Yellen and Fed policies creating more problems

To some degree, Yellen's statements are laughable.

    "Inflation sub-target" -- I thought the target was 2%?
    "Slack in the labor market" -- aren't we right near the 6% target?

The Fed isn't raising rates. It believes it can opine and twist and tweak words to manage the world economy. They are geniuses in booms and saviors in busts, but in reality, they are just dangerous interventionists whose policies are widening the wealth gap and creating immense capital misallocation.

If I were a senator, I would be throwing tomatoes on Capitol Hill today.