Gold, Stocks & Cryptos ALL Down : What’s Up?

Federal Reserve Chair Janet Yellen is up, that’s what. She finished her 4 year term on Friday and went out with a bit of a bang. She reminded us all of the power of the Fed with another great example of her now infamous “Jawboning” that, this time, would rock the markets rather than sooth them.

I won’t give you the direct quotes because it does sound mundane and if you’re not familiar with “Fed Speak” it will probably just confuse my point. She basically said to expect higher interest rates in the US and this kicked off proceedings for the selling in Stocks and Gold to begin. She was then backed up by Dallas Fed President Robert Kaplan who said more than 3 rate hikes might be needed this year. The selling accelerated.

This is how the Fed operates. They can move markets with words and they often come out in procession like this to add weight to each other’s statements and give the impression that what they are saying is as good as certain. The market nearly ALWAYS responds and it shows just how much power this centrally planned (and private) financial institution has on the global markets. They aren’t nicknamed the “Vampire Squid” for no reason.

Stocks sold off in their worst day since Trump was elected in 2016. Gold took a hit too, and Cryptos….well if you’re here on STEEM you probably already know about Cryptos. We were probably going to have a bad weekend anyway, but still it is rare that all 3 of these asset classes were down TOGETHER. So you have to ask yourself the question – What’s UP?

Well, other than Yellen, the US Dollar is up. CASH IS KING again, for at least the weekend anyway. That horrible inflated fiat currency that has been used to fuel corrupt governments and wars across the globe is back in charge of momentum again for now. Trumps choice to be the new Federal Reserve Chair is Governor Jerome Powell and so he is the new guy in the hot seat. The question I am asking myself, did Yellen just shit the bed on the way out? Could this be just the tip of the iceberg and a broad sell-off (particularly in Stocks) may have just been triggered. Did she just give us the signal?

Again it seems wise to suppress that inner Conspiracy Theorist nutter and listen to the rational mind. Stocks had a bad day but they were down less than 3%. Gold was hit but it fell by less. Cryptos have had a torrid weekend but even they look oversold with so much panic and FUD going on. The US Dollar still stinks and that’s not likely to change much either. So this was probably just Yellen flipping us all the bird on the way out.