by Jeff Berwick
Dollar Vigilante
As we mentioned yesterday, both the heads of the Federal Reserve and the Bank of Japan held important meetings and they both looked like deer in the headlights. Janet Yellen tried her best to act like somehow, maybe, the economy was going to recover… which has been going on since Ben Bernanke’s “Goldilocks recovery” story. A name we particularly liked because the “recovery” story is and was a fairy tale.
At the same time, Yellen also mumbled about how it just hadn’t quite recovered yet, enough to raise interest rates by a whopping 0.25%. In other words, this system is so fragile that even an increase in interest rates of 0.25% could bring it all down like a game of jenga played in a windstorm.
Meanwhile, on the other side of the pond, the Bank of Japan was expected to ease monetary policy but also couldn’t quite find the guts to pull the trigger for the same reason. Japan is so untenable that almost anything can make it implode now.