The Farce Is With Us

Janet Yellen’s Fed is rapidly making itself a laughing stock with its continuous cries of “wolf” followed by inaction. The Fed’s documents say that the economy is doing just fine, thank you, but the Fed’s actions – or lack of actions – speak far louder than those words.

The Fed probably realizes that it has created a Potemkin village, where behind a bright facade of cheerful villagers and fresh paintwork lies a barren and disappointed land. Any attempt to normalize rates will burst the financial bubble that sustains the Potemkin facade.

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