Putting aside all the stolen election rhetoric, the false flag "storming" of the Capitol building on January 6, and the resultant second impeachment of President Trump, investors sent stocks to reasonable gains, holding out hope for more stimulus and easy money policies from Janet Yellen, who sat for confirmation hearings as incoming Treasury Secretary.
Yellen's prepared remarks included a snapshot of her thinking, as she opined, "...with interest rates at historic lows, the smartest thing we can do is act big." In other words, the lower the interest rate, the more the government should borrow, since paying back any debt is less than a primary concern. Yellen, a former Federal Reserve chairperson, is signaling that Biden's idea to spend nearly another $2 trillion on a stimulus plan is rooted in some Keynesian logic that forgives spendthrifts and rewards the few wealthy open mouths at the spigot of the government fiscal firehose.
Transitioning her easy money policies at the Fed over to her new role at Treasury should be child's play for the grandmotherly, ancient economist, who will turn 75 on August 13. Born in 1946, she will celebrate her birthday just two days before the 50th anniversary of President Nixon closing the gold window on August 15, 1971, a fittingly ironic reminder of the profligate ways of the Baby Boomer generation. Yellen might as well be hoisting pom poms as she cheers on the accelerating demise of the world's reserve currency.
With intimate ties to many former colleagues over at the Federal Reserve, her loose fiscal policies should dovetail neatly into the Fed's plans to devalue the dollar completely.
She's the perfect fit.
At the Close, Tuesday, January 19, 2021:
Dow: 30,930.52, +116.26 (+0.38%)
NASDAQ: 13,197.18, +198.68 (+1.53%)
S&P 500: 3,798.91, +30.66 (+0.81%)
NYSE: 14,987.34, +93.17 (+0.63%)
Posts
No comments:
Post a Comment