This is taper light, at best. But its not even that. Because the Fed was so worried about the effect that would have on the market simply by announcing a decision to taper in the future that the Fed decided to sugarcoat that bad tasting medicine. How did they do it? The Fed changed its language with respect to its commitment to keep interest rates at zero. They have been at zero for years and the Fed has said, as long as unemployment is above 6.50%, interest rates will stay at zero. Now,the Fed has changed that language, it has rewritten it. It now reads, the Fed is going to leave interest rates at zero well past the point in time where the unemployment rate goes below 6.50 percent. So they haven`t just moved the goal posts, they have destroyed the goal posts.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
- ► 2017 (114)
- ► 2016 (252)
- ► 2015 (344)
- ► 2014 (429)
- Christmas Sales: The Worst Since 2009
- China`s Currency Is Likely To Appreciate in 2014
- The Big Story Will Be China`s Tapering
- U.S. Economy: The Highest Rate We Can Afford Is Ze...
- The Federal Reserve Eased Monetary Policy When The...
- Video: The Highest Interest Rate We Can Afford Is ...
- Bitcoin: It Will Not Work As A Currency
- Simple Economics On Wal-Mart (WMT)
- Video: The Response From The Left
- Bitcoin: The High Is Probably In
- This is Taper-Light, At Best
- The Fed Is In A Box
- How An Economy Grows And Why it Crashes: Simplifyi...
- Investing In The Big Picture
- America`s Level Of Taxation
- Alternative Media: The Best Source Of Information
- Fiat Currencies, Gold & Bitcoins
- It`s Hard To Convince People To Vote For Less Gove...
- The Whole U.S. Economy Is Based On Debt
- The Fundamentals Of The U.S. Economy
- The Potential Growth In Asian Capital Markets
- Video: Economics, Politics & Monetary Policy
- The Federal Government Is Now Monetizing 150 Perce...
- The Dollar Has Not Collapsed Yet, But It Will
- Gold Is Going To Resume Its Ascent
- What Will Happen When Foreign Central Banks Stop B...
- Emerging Markets Inflation Explained
- Bitcoin: Money Or Speculative Asset?
- If The Fed Stops, We Will Have A Complete Collapse...
- Digital Currencies Backed By Gold?
- Bitcoins: Don`t Have Any Value Absent Being A Medi...
- There Is A Bubble In The Stock Market
- Video: U.S. Stocks Are Expensive
- Bitcoins: Tulipmania 2.0
- ▼ December (34)