Tuesday, February 11, 2014

News Recap for the Day - Yellen testifies - Bloomberg says Bitcoin is fading

Today just a couple of links to stories that are relevant to our topic here which is coming monetary system change.

The first is new FED chief Janet Yellen appearing before Congress today.

Quick summary: Yellens comments were clearly on the dovish side as she re confirmed that short term interest rates would be kept low for a long, long time. This tells you the FED is by no means convinced that we are seeing a long, stable, sustained recovery. But the main objective today appears to be to project an image of stability. No major change in FED policy is expected is her message today. This is consistent with what we now see coming from the IMF. The idea that things are a little better so no need for any radical changes right now.

This is consistent with what Jim Rickards points out over and over. The powers that be do not want to project anything that suggests there is an imminent crisis at hand. Their goal is to deal with the admittedly huge debt problem by just trying to inflate it away over time at a steady controlled pace. That is the least disruptive way they can keep the system going.

Rickards says they state a goal of 2% inflation, but are actually failing to achieve that. So, they will stay with what they are doing (or even ramp it back up again) to get the inflation rate up. He adds that they really want a 4% (or more) rate so that over a few years they inflate away a big chunk of the debt to GDP ratio without having to do anything that the public would tie to their policies and get upset about. Their (the public's) savings gets slowly devalued, but they never really realize why its happening. This may be what Christine Lagarde meant by "indirect methods of taxation" in her recent article on growth and jobs we posted here.

The other story today comes from Bloomberg on Bitcoin.

This is clearly a negative article suggesting Bitcoin will fade away over time. If you pay attention at all, you can easily see a more ramped up effort to discredit Bitcoin ever since CNBC quoted Jamie Dimon (JP Morgan) and Jack Lew (US Treasury) with very negative comments about Bitcoin.

This quote in the last part of the article caught my attention:

" For outsiders, however, it looks increasingly as though Bitcoin should be viewed as an experiment, a test case. Other electronic currencies will rise, and be more widely accepted, after all the regulatory and technical issues are resolved."

Look at that last underlined comment and keep in mind the articles we have posted here about Klickex and its new cryptocurrency (the GSD). Keep in mind it is working its way steadily through the regulatory approval process country by country.

These stories also relate to how to project the possible timing for major system changes and/or a currency reset. I will have some more in depth articles on that this weekend where I will attempt to lay out some ideas on what the two main prediction models are for timing.(fast paced versus slow paced).

No comments:

Post a Comment