Skip to comments.Senate Panel Green Lights Janet Yellen for Fed Chief
Posted on 11/24/2013 8:32:28 AM PST by Son House
Yellen currently serves as vice chairman of the Fed and as a reliable dove would represent continuity with Bernanke. She has consistently supported Bernankes easy-money policies and even seems open to more aggressive moves to fight stubbornly-high unemployment.
"I consider it imperative that we do what we can to promote a very strong recovery," Yellen said during her confirmation hearing.
Yet Senate Majority Leader Harry Reid announced plans on Thursday to enact the so-called "nuclear option," which would change Senate rules to allow him to approve certain motions with a simple majority rather than 60 votes.
Yellen, who was among the first Fed policymakers to voice concerns about a bubble in housing in 2007, signaled during her hearings that she doesnt believe the central banks policies are driving stock prices too high.
(Excerpt) Read more at foxbusiness.com ...
2nd: How does the Fed "promote a very strong recovery"?
The recession was over in June 2009, that's 4 years of a jobless recovery, and the who expects the next business cycle is more recovery???
3rd: Senate Rules changed to the Simple Majority.
Since January 2007 Democrats have been running the 'economy' and gotten every jobs program and stimulus they ask for. Today, every month the Fed is buying $85 billion in bonds to 'promote recovery'. The Fed should not be the biggest US Government Creditors.
But it continues the spending because Banks aren't stuck with the bond debt, the Fed buys it with electronic funds transferred, there is no real economic activity except the banks now have cash.
And where do these bonds go? The banks will later be regulated to buy them again, as the Fed will require more liquid assets be held by banks.
4th: The Fox Reporter should add in March 2006, Yellen was saying "overall the economy has shown considerable resilience", she wasn't signaling then. Another 2006 speech Yellen was encouraging banks to give out loans encouraging home ownership. Ask Peter Schiff who was first to sound the alarm of the housing bubble.
Housing Speculation is More Rampant Than You Think by Peter Schiff, Euro Pacific Capital. July 5, 2005
QE will continue till Obama leaves office, then the next president will be handed a larger POS than the 8 years previous.
And to further elaborate, the Fed buys bonds with per-non-existing funds, later sells bonds to take the real cash out of banks.
Banks now have the 'per-non-existing funds' and the bonds they original owned by paying cash for twice.
Where does the cash go? Inflation is the first thought. $85 billion dollars a month.
And how long does it originally take for bank customers to deposit $85 billion dollars?
They print the Bonds on the same printing press they print the money and they are just as worthless.
Americans are spending Confederate money.
When other countries stop accepting it , it’s value will be the same as Confederate money.
That is the measurement to which the Fed is propping this Democrat run Economy.
Is there any more prove necessary Democrats have no interest in improving the private sector economy 4 years after the recession ended?
The real story here is that the FED and all of its governors aren’t any smarter than the people reading this thread. They didn’t know, they suspected, they did nothing and here we are today. How is that better than just the market regulating itself?
The FED is working to eliminate the volatility of the marketplace. It’s tamped it down so badly that it is causing a series of other disruptions. Government has destroyed trust in itself and its institutions. Who can you turn to now?
I was having a conversation the other day with a Kenyan doctor and his wife, an MBA. The wife said that socialism was bad as it encouraged corruption and that capitalism was just as bad because people will cut corners for greed.
What the Yellen vote will tell us about today's Republican Party
The truth is that neither economic theory nor evidence suggest that creating so much new money will create sustainable new employment. Bernanke has pointed to stock market gains as evidence for success, but there is also little correlation between such gains and employment growth. This particular brand of trickle down economics simply does not work.
In the long run, what the Fed has done is to clamp ever tighter price controls on interest rates, which are among our most important prices.
Even a beginning level economist knows that price controls do not improve an economy. They destroy it.
“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.” — Winston Churchill
Yep and it is a false signal. When will the ride suddenly stop? Better to have let interest rates rocket up, new entrants would have replaced the bank’s credit at higher rates and then those rates would begin to fall and the market would stabilize. It would have saved us trillions in wasted government transfer payments. It would have stopped the behemoth’s growth, ended deficit spending and sharply reduced the power of government. Who’s the FED working for?
The velocity of money has crashed and is staying in the cellar despite all the FED and FEDGOV are doing. Why? People know that government money is fake. It’s noise, not signal. The insiders gain at the expense of the rest of us. It’s a mess. The government is so beholden to so many interest groups that the way out will be disastrous no matter what.
I wish Calvin Coolidge were President, but I don’t think America would elect anyone not-Santa Claus.
We are watching an staggeringly enormous transfer of wealth to the financial elites from the current middle-class and generations unborn.
Thanks Son House.
Janet Yellen And The Fed Caught In a Bear (Liquidity) Trap And Why Interest Rates Will Remain Low