Ah, she just mentioned the high “debt to GDP levels in the Q&A”. Thank you sir! Point made.

She just jawboned QE 4, which is why I decided to make a post about the speech. She did not mention “QE” but hinted about buying T bonds in the absence of bullets left in the Fed Funds rate chamber.

The theme running through this waffling speech has been USD adversarial. There is some pretense of hawkishness (as needed) to keep it real, but Yellen seems very conscious of the currency and what its strength has been doing to US exports and global economies (esp. EM’s) alike.

The Fed obviously wants inflation. I don’t know how much more obvious they can be. They trotted out the clowns to jawbone hawkish and give the process some cred, but Yellen apparently thinks we can get ‘just the right amount’ of inflation in keeping the USD contained. Good luck with that. Cue Genies and empty bottles…

Again, an inflationary regime helps the US with its debt problem. The GDP has needed ever more of it just to keep its lame status. The more I think about this, the more I think it is the primary reason for getting us ready for inflation.