Fed Admits it Does Not Understand The Markets

COMMENT: Mr. Armstrong; I must congratulate you on a fantastic conference. You explained that the central banks were clueless and that the Quantity Theory of Money was wrong and was being misapplied. Your Vertical Market Report explains that there were two types of vertical markets and nobody has ever discussed them. Then this week, the London Financial Times reported that your head of the Fed, Janet Yellen, publicly admitted that the US Federal Reserve can not explain the development of inflation rates in the US this year. I was really taken back for you said exactly that at the conference.

You really do know what is going on behind the curtain.

Well done

Cheers

KT

REPLY. Yes, I am aware that Janet Yellen admitted on Tuesday that she does not understand the comparatively low rates of inflation, according to the Financial Times. This confirms what I have been saying that there are fundamental questions regarding the use of monetary policy of the central bank and the Quantity Theory of Money. The theory does not function as touted and it has been proven to be another myth along side rising interest rates causes the stock market to decline.

All of these theories have been created by attempting to create a single dimension cause and effect. There is much more complexity at stake which is just never taken into account. I went into great detail in the How to Trade a Vertical Market report to show WHY such booms and busts take place and they cannot be attributed to a single theory or monetary policy of the central banks. Such events took place long before there were even central banks.