“The economy is not getting better…The fundamentals of the economy are not good, and I think that’s what the Fed said today. If the fundamentals were good, they would have just tapered and left it alone. That’s not what they did. They said they’d taper, then gave a very dovish guidance.” Mr. Rickards also believes the Fed had to acknowledge that QE is not producing inflation, which was their goal all along. This is largely due to the fact that the velocity of money has not picked up enough to cause inflation. Now they will need to try other things. “They really don’t know what they’re doing.”
Monday, January 27, 2014
Kevin O’Leary Talks Taper with Jim Rickards
“The economy is not getting better…The fundamentals of the economy are not good, and I think that’s what the Fed said today. If the fundamentals were good, they would have just tapered and left it alone. That’s not what they did. They said they’d taper, then gave a very dovish guidance.” Mr. Rickards also believes the Fed had to acknowledge that QE is not producing inflation, which was their goal all along. This is largely due to the fact that the velocity of money has not picked up enough to cause inflation. Now they will need to try other things. “They really don’t know what they’re doing.”
