The truth about "Fedspeak" is out! You remember "Fedspeak," the language that Alan Greenspan used as the Federal Reserve Chairman to describe the Federal Open Market Committee's decisions and decision-making process. Usually, by the end of his speech, Greenspan left everyone more confused than at the beginning. You only hoped that the Fed and Dr. Greenspan understood what he said.

He has now let the truth about "Fedspeak" out in his new book, The Age of Turbulence. It seems that this confusion was intentional on his part and was meant to prevent unintended jolts to the financial markets from Fed comments. The success of "Fedspeak" in accomplishing this goal will be the source of heated debate for a long time.

Dr. Greenspan also gave pointed comments about each of the previous presidents with whom he worked. This is information that is very interesting from a political and economic historical perspective.

The conclusion from Dr. Greenspan's confession about "Fedspeak" is this: Watch what the Fed does, not necessarily what it says (!) as the two can often be very different. Remember his "Irrational Exuberance" speech in the mid-90s? Apparently Greenspan was trying to talk the market down with that one.

You can find clues to what the Fed is doing in public speeches and pronouncements. However, at FollowtheFed.com I always use the actual data to determine what the Fed is doing. This is especially true in light of Dr. Greenspan's recent confession.

Doug Roberts is the Founder and Chief Investment Strategist for FollowtheFed.com, an independent research firm focusing on investment strategies using the Federal Reserve's impact on the stock prices. He previously held executive positions at Morgan Stanley Group and Sanford C. Bernstein & Co.