Are You Yellin’ at Yellen?
By SJ Spence
First, let us start with this: Who is Yellen?
Janet Yellen is the 78th United States secretary of the treasury. She was nominated for this position by the current presidential administration. It also important to note that she was the last Fed Chair from January 2014 to February 2018. Her resume reflects that she is well qualified and experienced for her current position. So why would anyone yell at her?
Well, can I start with a statement she made in a hearing as the Fed Chair in 2017? During a question-and-answer session in London, Yellen answered a question and stated: “Would I say there will never, ever be another financial crisis? You know that would be going too far but I do think we are much safer, and I hope that it will not be in our lifetimes, and I do not believe it will be, not a good thing.” Article link: https://www.reuters.com/article/us-usa-fed-yellen-idUSKBN19I2I5
In September 2021, as the treasury secretary, she was stating the urgency and need to raise the US debt limit, or the country will face a recession. Would you consider inflation experiencing 40-year highs a financial crisis? See interview here: https://youtu.be/RMNhkvPWuRI
Then later in October, she stated that she trusts the Federal Reserve “to make the right decisions” regarding controlling inflation. See the interview: https://youtu.be/DSDKMbsR9Gs
Oh, and let us not forget the ‘transitory’ inflation description by her and all our economic leaders. They tried to explain that inflation would spike up and then return to their target levels. Yes, the Fed had a 2% target of year over year inflation. And then they decided to let it ‘run hot’ to get to the 2%. They have overachieved their goals.
In the beginning of June this year, in case you missed it, Secretary Yellen admitted to being wrong on inflation. She said, “at the time I fully didn’t understand.” See the interview: https://youtu.be/wXZ2-xDIytI
And finally, as she was testifying before the senate financial committee last week she stated: “I was not envisioning impacts on food and energy prices we’ve seen from Russia’s invasion so I do expect inflation to remain high although, I very much hope that it will be coming down now.” See the clip: https://youtu.be/xRF-7ASdlwU
The point I am making with this blog is that anyone could have foreseen the increase in the cost of living in the USA and the world. Even though most of us are not economists but, after reading my book ‘Money, Plain and Simple,’ we saw what the treasury and the federal reserve did with their currency creation, and we all anticipated this to be the result of impacting our economy. They, on the other hand, are the experts and the ones we trust to guide the nation and avoid the pitfalls for us. With that said, is this the best our leaders can do? Their decisions have negatively affected so many people in the US and around the world and it seems that they want more of the same.
The economic blunders that were, and still are, being made will not fix itself. “Hopeium” will not work here. There is too much liquidity (currency) in the system. And our government is committing to spending more and more. This creates more inflation, and the Fed is now raising their funds interest rates as their tool to lower inflation. But as interest rates rise, lending will slow for home buyers, pensions are at risk due to the exposure to the markets all while the dollar loses its value. Again, we are not economists here, but more spending, means more money (currency) creation. Then, higher interest rates mean a higher debt service interest payments. To cover these loans, and yes, the American taxpayers are now liable to pay them, will more than likely result to higher taxes. And all the while, your dollar devalues itself.
We are just beginning this cycle, and to me, it is becoming clearer and clearer that the folks in charge are going to choose to inflate the debt away at our peril. This is the way to do it without defaulting on our debt. I can assure you the elite will not feel this pain that they want to put this nation through.
So, when our leaders speak, and they tell us everything is fine, “it will only be a little longer they say.” My favorite is that it is everyone’s fault but their own. Or better yet, how about when they own up to their miscalculations and admit to their mistake. This way, they can be labeled as ‘honest’ politicians. Now we are paying over $5 a gallon for gas and your rent just went up $300 per month. Ask yourself, are they being truthful to me? It is failure after failure and now it is at everyone’s front door. These are the people to lead us out of this mess…Can they? The only thing I see are salespeople promising the economy is great and unemployment is at its lowest. I ask you: If you knew this was going to happen, don’t you think that they knew too? So, I must ask, what does Secretary Yellen mean by “I very much hope it will be coming down now”?
Let me know what you think! firstname.lastname@example.org
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