Janet Yellen’s Mission Impossible

Peter Schiff’s latest commentary grapples with the challenges Janet Yellen will face as the new Federal Reserve Chairman in 2014. Contrary to popular opinion, Peter believes that Yellen will actually increase QE sometime next year. If Peter’s prediction is correct, physical precious metals could see an impressive comeback.

“Most market watchers expect that Janet Yellen will grapple with two major tasks once she takes the helm at the Federal Reserve in 2014: deciding on the appropriate timing and intensity of the Fed’s quantitative easing taper strategy, and unwinding the Fed’s enormous $4 trillion balance sheet (without creating huge losses in the value of its portfolio). In reality both assignments are far more difficult than just about anyone understands or admits.

Unlike just about every other economist, I knew that the Fed would not taper in September because the economy is still fundamentally addicted to stimulus. The signs of recovery that have caused investors and politicians to bubble with enthusiasm are just QE in disguise. Take away the QE and the economy would likely tilt back into an even more severe recession than the one we experienced before QE1 was launched.”

Read the Full Commentary Here

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