Saturday, January 31, 2015

The Death Of The Middle Class And The Hard Truth
Therefore, it is my prediction that Yellen will not be able to raise rates and will soon have to adopt a very bearish stance towards the dollar. After all, a hawkish interest rate policy is untenable for a Fed that is now paralyzed with the fear of deflation, especially while the rest of the world is frantically printing money. 

Our central bank will not have the courage to allow the dollar’s rise to continue.  And, it is inevitable that Yellen and her comrades at the Fed will soon follow the lead of our Treasury Secretary in talking the dollar down. That may be music to the ears of multinational corporations and our government; but will be the death knell for the middle class.
I would add "a debased dollar will be music to the ears of gold bugs."

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