I wrote about Janet Yellen and her thoughts on gold when she was appointed as the Fed Chairman. She will have to come out with QE infinity to hold the slipping stock market. Here are my thoughts on her (I wrote this blog on December 4, 2013).
The only person who should be happy about Janet Yellen’s nomination as Federal Reserve Chairman is Uncle Ben himself. Just like how Greenspan got out of dodge before the housing bubble burst, Ben Bernanke is getting off the hook before the next economic collapse. During his term, Bernanke managed to double the stock market with his QE 1 – QE 4 and Operation Twist. He can now leave without tapering and claim credit for putting the economy back on track in five years. However, for this fake growth (bubble) to sustain, Janet Yellen has to take QE4 to QE infinity and destroy the purchasing power of the dollar. Yellen is oblivious to inflation and doesn’t believe in sound money or austerity.
“Nobody has a good model of what the fundamental value of gold is or should be”, stated Janet Yellen in her hearing before the Senate. If one cares about the value of gold (the Fed Chairman should be the first person to care), we do not need “models”. We need to open up our eyes to the fundamental theory of money and realize that it is the very inflation of the fiat money supply that causes the price of gold to rise. With such crazy inflation all around the world now, Weimar Republic and Zimbabwe will only become median statistics in history. We are going to witness, in our lifetimes, the tail of this distribution. Get some gold and crash proof yourself.