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Losing “Patience” Does Not Mean the Fed has Lost Patience

  • The Fed released long-awaited FOMC official statement
  • Indicating they will be more patient without the word “patient” than when they were officially patient
  • Why take the word away in the first place?
  • The Fed wants to appear to be moving closer to a destination to which it has no intention of arriving
  • The Fed is clearly more concerned about the economy today; they reduced growth estimates
  • Janet Yellen said she will not raise rates until she sees improvement in the labor market
  • The Fed not satisfied with 5-1/2% unemployment
  • The jobs number is the outlier and will turn around
  • Housing starts collapsed in February; biggest in 8 years
  • Economic Surprise Index is most negative in memory
  • It doesn’t matter what the unemployment rate is; the Fed can’t raise rates without creating a financial crisis worse than 2008
  • The minute the Fed went down the path of QE, they sealed our fate
  • There is now so much debt that we need QE more than ever
  • The dollar had a huge rise in anticipation of rate hikes
  • The Fed is more likely to launch QE4 than to raise interest rates
  • The Fed is not going to raise interest rates until there is a currency crisis
  • When the dollar turns, commodity prices will surge in all currencies
  • The fact that the day of reckoning has been delayed with increased debt means a bigger payday for Euro Pacific Capital investment strategy
  • It will be better to restructure and default on some of our debt that to deflate it away
  • Understand the end game, ride it out and have the last laugh