Fed-Speak Translated Into Plain Truth

Talk is cheap, never more so than when it comes from the mouths of the charlatans and quacks who run the Federal Reserve. Their latest “plan” is to start selling assets from the Fed’s $4.5 trillion balance sheet in October; tightening perhaps 25 basis before 2018; then tightening three more times next year.  Translation: We will initially unload whatever crap the traffic will bear, which could be zilch; we will continue to talk the talk as brazenly as possible, pretending that 25 basis points of alleged tightening every now and then constitutes real tightening; and, we will treat the recession currently gathering force in the U.S. economy as though it could not possibly happen. So let repeat this yet again:  The economy and the stock market are a house of cards, and any significant “tightening” in the year ahead is therefore as likely as a Martian invasion.

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