Step 2 - Name a New Fed Chair
Step 3 - Send in The Helicopters full of Money
from the Yahoo Daily Ticker:
She’s “more of a hardshell believer in the benefits of monetary easing,” Rickards tells The Daily Ticker. While he describes Bernanke as having a more stop-and-go approach to quantitative easing over the last several years, he says Yellen is much more likely to say, “'We need to print money, we’ve got to have some goals, we’re gonna keep printing money until we hit those goals.'”
Columbia economist Michael Woodford’s calls for nominal GDP targeting would be an example of this type of policy.
So what’s wrong with that approach? Rickards argues that we’re in an economic depression which is structural as is the ongoing unemployment problem, so the Fed’s cyclical policies may not work. Meanwhile, the risk to the downside, in his view, could be a collapse in confidence in the dollar.
So what else can we expect next year in terms of monetary policy? Rickards predicts 'helicopter money' coming in 2014 – an election year when Republicans and Democrats may have a rare moment of agreement on taxes. Wait, why would 'helicopter money' involve members of Congress, and what is it anyway? Check out the video to find out.
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