Do you think Federal Reserve Chairman Janet Yellen can come out of the money printing binge and engineer a “soft landing” of fiscal responsibility and a stable economy?
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Announcer: Do you think Federal Reserve Chairman, Janet Yellen, can come out of the money printing binge and engineer a "soft landing" of fiscal responsibility and a stable economy?
Robert Wiedemer: You know, I think there's huge hope that somehow, some place, somewhere, the Feds are going to figure out an answer to this problem, or somebody will and it's literally that vague. When you even talk to very sophisticated investors, when you really pin them down, it's really more of a hope that some how the Fed will figure a way out of this or it really won't cause a big problem, and maybe they might focus on Janet Yellen or something in particular, but the problem is really bigger than all that. They printed a lot of money--it's that simple. To keep the stock market up, they're going to have to print more money--it's that simple. It's really not going to matter who your Chairman is my guess, although, Ms. Yellen is certainly quite happy to print a lot of money, but her policies, I think, of being willing to print money aren't that much different from Ben Bernanke who was politically on a very different side of the fence from her and he printed a lot of money. Probably because again this is what they're all forced to do. The problem is not that the Feds may be making the wrong decision, they're making a decision that simply makes the problem worse. They don't have anything else they can do. All they can do is print money, they're a money printing machine. They don't have any financial engineering and dials back there, that's it. You know, there's no...well, let's turn the stock market to... the DOW to 20,000, we'll put the unemployment right here, they just print money and that's it. Ultimately, that simply doesn't work. You can look at the Feds own research to see the exact same thing. So, it's not really a matter of Yellen or Bernanke or this, they're in a situation that they didn't want to be in the first place. They panicked effectively, printed a lot of money, it worked, but ultimately long-term it's not. They're not going to be able to exit. They're not going to be able to not print more money. They're going to have to print a lot more.