It always surprises people who don’t have much experience with government how dumb some bureaucrats and politicians are. From MN Gordon at economicprism.com:
The United States Secretary of the Treasury bears a shameful job duty. They must place their autograph on the face of the Federal Reserve’s legal tender notes. Here, for the whole world to witness, the Treasury Secretary provides signature endorsement; their personal ratification of unconstitutional money.
If you recall, Article I, Section 8, of the U.S. Constitution empowers Congress to coin money and regulate its value. What’s more, Article I, Section 10, specifies that money be coined of gold and silver and cannot be bills of credit.
Indeed, paper dollars are illegal money per the U.S. Constitution on two counts. First, they’re issued by the Federal Reserve. Second, they’re bills of credit with no ties to gold or silver.
This critical defect does not register even a passing concern for most Americans. But it should. Because illegal money – like paper dollars – has its deficiencies. Mainly, it’s prone to gross over issuance for political means. Thus, as it funds the unlimited growth of government, its payment quality grows evermore suspect.
Without question, illegal money has a whole host of problems. And the woman who will soon be autographing the illegal money – Biden’s nominee for Treasury Secretary, Janet Yellen – will further stimulate these problems.
Deceptive and Cruel
Janet Yellen, if you don’t remember, was Chair of the Federal Reserve from 2014 to 2018. She’ll be only the second bureaucrat to be both Fed Chair and then Secretary of Treasury. The first was G. William Miller way back when Jimmy Carter was President. Miller was a poor steward of the dollar. Inflation went Richter on his watch.
Yellen, like Miller, will have the unique opportunity to authorize the money she previously issued. The consequences could be equally destructive for the dollar. They may even be worse.