Why The Convoluted Message From Yellen?

August 30, 2016

Why the tough talk out of one side of her mouth…and ‘other policy tools’ language out of the other (ref. Yellen Lays Out Tools …)?  Oh, I don’t know.  Maybe it has something to do with this…

The stock market has merrily followed money supply aggregates upward since 2009.  When money supply decelerates the market corrects.  When money supply ramps upward the market ramps upward.  Money supply has been rolling over since 2014, which was not coincidentally when the first tremors began for the stock market in its recently completed top (that wasn’t).  From SlopeCharts

But something is out of whack here.  Let’s dial in for a closer look.

When you see pictures like these that are not open to argument, and then you hear a powerful policy maker blabbing on about the strengthening economy and increased chances of a rate hike… and then you hear her slip in punch lines about ‘other policy tools’, and then you look at a chart like the above… you laugh in a ‘what else am I gonna do, cry about it?’ kind of way and you move forward.

Our policy makers are so transparent as to be funny, like Rosco the Clown…

…and scary like Twisty the Clown.

Courtesy of NFTRH.com and Biiwii.com

Gary Tanashian of biiwii.com successfully owned and operated a progressive medical component manufacturing company for 21 years, keeping the company’s fundamentals in alignment with global economic realities through various economic cycles.  The natural progression from this experience is an understanding of and appreciation for global macro-economics as it relates to individual markets and sectors.

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