Tag Archives: Janet Yellen

What Happens When Work Doesn’t Pay, by MN Gordon

Posted on August 5, 2022 | Leave a comment

The U.S. economy is sick and getting sicker. From MN Gordon at economicprism.com:

Now there comes a time
In every man’s life,
Where decisions have to be made
Whether to toil, to labor,
Or just plain piss
Your days away, away, away!

– Caught in a Jar, Dropkick Murphys

Flat Out Wrong

Jobs data reported this week by the Bureau of Labor Statistics show that, as of the last business day of June, there are 10.7 million job openings.  Hence, according to the numbers, there are many more available jobs than willing workers.

At the same time, the U.S. unemployment rate’s just 3.6 percent – near a five-decade low.  So, by the numbers, the economy is at full employment and still overflowing with jobs to be filled.

The U.S. economy couldn’t possibly be in a recession, given this robust and healthy jobs market, could it?

Not in the eyes of Treasury Secretary Janet Yellen, who recently stated the economy isn’t in a recession because, “job creation is continuing, household finances remain strong, consumers are spending and businesses are growing.”

Quite frankly, Yellen is flat out wrong.  Remember, the jobs numbers are only as good as the data that goes into them.  And with a scratch below the surface, it quickly becomes clear that the jobs numbers are not a sign of economic strength.  But rather, of economic sickness.

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Janet Yellen Seen Reading ‘Economics For Dummies’

Posted on June 2, 2022 | Leave a comment

From The Babylon Bee:

WASHINGTON, D.C.—After admitting on national television that she had not anticipated the intensity and length of America’s inflation pains, Treasury Secretary Janet Yellen was seen in her office poring over a copy of Economics for Dummies.

The secretary, hired for her brilliance in possessing a checklist of acceptable physical characteristics, has been praised for her renewed desire to understand how moneys work.

“Huh, I was way off when I said inflation risks were small and manageable,” Yellen was overheard muttering to herself while using a crayon to circle the book’s key principles about how money does not grow on trees. “My staff should read this brilliant work of economic genius once they’ve finished The Communist Manifesto.”

The Biden Administration reportedly stands by retaining Janet Yellen as Treasury Secretary, stating, with a snort, that replacing her with some white dude would throw off their very important gender diversity ratio.

At publishing time, Secretary Yellen had finished Economics for Dummies and, with a firm grasp on high school-level finance, fired her team of economic advisors, Mr. Magoo, Gonzo, and the Marx brothers.

https://babylonbee.com/news/janet-yellen-seen-reading-economics-for-dummies

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Janet Yellen Faces the Nation and Lies About Inflation, by Schiffgold

Posted on November 18, 2021 | 1 comment

Janet Yellen is an inconsequential mediocrity and so of course would say whatever she’s been programmed to say about inflation. From schiffgold.com:

After last week’s sizzling hot CPI data, inflation talk continues to dominate the news. The government and central bank have been insisting inflation is transitory. Now they’ve turned to a new spin tactic – recycling 1970s inflation propaganda.

Treasury Secretary and former Federal Reserve chair Janet Yellen appeared on Face the Nation and spent the interview lying about inflation. Peter Schiff unraveled her lies in his podcast.

According to Yellen, the current bout of inflation has nothing to do with the Biden administration or the Federal Reserve. She claims it’s the pandemic’s fault, saying, “The pandemic has been calling the shots for the economy and for inflation.”

In Yellen’s narrative, inflation is simply a byproduct of high demand. She said there was a dramatic increase in demand during and after the pandemic, and that is why prices are going up. Since people were at home, they had lots of time to shop. “They shifted their spending on to goods that led to a surge in the demand for products,” Yellen said.

So, we really don’t have anything to worry about because this isn’t really inflation. It’s just demand-driven price hikes.

Peter called this laughable.

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Fragile: Handle with Care, by Sven Henrich

Posted on May 6, 2021 | Leave a comment

The Fed is walking on egg shells trying not to say or do anything that would upset the markets and topple the house of cards. From Sven Henrich at northmantrader.com:

What a circus. I imagine there’s a big sign in every Fed building in America: Don’t drop, fragile, handle with care.

Janet Yellen, while no longer in a Fed building, committed the cardinal sin of pointing out the obvious yesterday: Rates may have to be raised in response to rising inflation.

The response sequence was as predictable as laughable:

Recognizing the market’s reaction of the unthinkable: Selling, the comments had to be caveated to immediately erase the damage of a near 3% drop in the tech sector.

Yes, this is how conditioned investors are, this is how pitifully everything is centered around policy makers where the slightest hint or thought of even just thinking about reducing the free money spigot may cause selling of equities.

And it wasn’t just Yellen coming to the rescue of her unforced error course. In the last 24 hours alone a multitude of Fed speakers coming out nearly every hour to assure markets that they either have the tools ideal with inflationary pressures or that inflationary pressures will be transitory or even moving the goalposts outright:

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Yields To Surge As Biden-Yellen Create Record Deficits, by Egon von Greyerz

Posted on March 7, 2021 | Leave a comment

The deficits over the last year and now projected into the next few years are going to push up interest rates. From Egon von Greyerz at goldswitzerland.com:

Well, right on cue, it looks like the endless creation of fake money by the Fed has now poisoned both the stock market and the bond market. The Dow was down 1,000 (3%) points in two days and the Nasdaq down 7% in two weeks.

Gold and silver are also falling in sympathy. This was expected short term, but the outlook for the precious metals look excellent as I will discuss later.

Is this what the 16th century Swiss doctor Paracelsus ordered? It certainly looks like it. He told us that too high a dosage of anything is toxic. And with a world flooded with toxic money with little value, the levels of poison have reached extremes.

The toxic financial system needs to be cleansed but as we have warned many times, this will have dire consequences for the world.

FRANTIC STOCK BUYING BEFORE THE MUSIC STOPS

Buy high and sell low is the mantra of many investors. And as the stock market surges – buy more! And when it falls, buy still more.

But this time, the method of always being long, which has been fool proof for decades and underwritten by the Fed, will fail hopelessly. Whether investors buy on strength or buy the dips, they will get slaughtered.

As often the case at the end of a cycle, we have in recent weeks seen frantic buying of anything that moves just like with tech stocks in 1999-2000.

Just look at the incredible 16 week inflow to stocks of $414 billion. This is 2X the 2018 peak of $200b and an all-time record.

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Yellen Gets Ethics Waiver To Lead Regulator Meeting On Gamestop Insanity After Taking $810K From Citadel, by Tyler Durden

Posted on February 3, 2021 | Leave a comment

And they wonder why people don’t trust the government. From Tyler Durden at zerohedge.com:

Once it became clear – just a few seconds after AOC first rage-tweeted about RobinHood refusing to let “the people” trade more shares of $GME and $AMC before adding that she’d support a public hearing on what had just happened – that all the key players in the “WallStreetBets”/”Gamestop” trading saga would soon be dragged in front of Congress like a gaggle of tech CEOs, the newly elected Democrats and their hand-picked economic team were faced with a critical question: who exactly was going to preside over these proceedings on the regulatory side, since they are virtually all compromised by key connections to the financial services industry, and not just the big banks.

Over the past decade, a new category of financial beast has arisen. At Zero Hedge, we have been writing about them for years. They’re alternatively called “high frequency traders” “high freaks”, and “orderflow frontrunners” for those enjoy speaking the truth, or “market makers” for the political correct, but after the events of last week, millions of people were either asking Google, or their one IBD analyst friend, to explain what ‘Citadel’ is, and how it works…. the same Citadel which threatened to sue Zero Hedge last June for accusing it of frontrunning orders, just weeks before regulators punished Citadel for frontrunning orders (oops).

Now, barely days after being confirmed as President Joe Biden’s new Treasury Secretary, Janet Yellen must preside over a major media circus and the most glaring indication yet of just how broken the US stock market is (thanks in large part to her actions while she was head of the Fed).

Which is a problem because as a reminder, Yellen received almost a million dollars in “speaking fees” in the past two years from the firm that is the quasi-monopoly “market maker” in the US, responsible for half of retail orderflow thanks to its domination of Robinhood trades…

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Janet Yellen: Too Dumb To Stop, by MN Gordon

Posted on December 9, 2020 | Leave a comment

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.

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Powell ain’t Yellen, by the Northman Trader

Posted on February 9, 2018 | Leave a comment

The timing of the recent stock sell off was propitious from one point. It came as Yellen exited, so she won’t be blamed, and as Jerome Powell became the Chairperson of the Federal Reserve. You can’t blame it on him, he probably hadn’t found the coffee machine when the plunge began. So nobody at the Fed can be blamed! From the Northman Trader at northermantrader.com:

When police try to solve a crime one of the key tasks is to determine who benefits from the crime. The beneficiary of a crime is not necessarily the perpetrator, but motive goes a long way to narrow the circle of potential suspects.

Who benefitted from this sudden aggressive sell-off aside from anyone who was positioned short?

Certainly not hedge funds that capitulated long in January with their highest long exposure in 3 years literally right before the sell-off.

And certainly not retail that went full balls long on the aura of optimism:

This trend continued right into February 1 following the FOMO train. Remember Ray Dalio?

Now this:

Panic selling with record outflows. In record time no less:

From greed to panic in less than 2 weeks.

People got hammered big time as price gave back months of gains in a matter of days:

That’s a lot of trapped supply and will present a challenge for future rallies.

So benefits from all this? One man. One man in particular:

Jerome Powell.

From his vantage point the timing of all this has to be perfect. Absolutely perfect. And from Yellen’s position it’s perfect too actually. But it is Powell I want to hone in on in particular.

To continue reading: Powell ain’t Yellen

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Good Riddance And Look Out Below, by David Stockman

Posted on October 28, 2017 | Leave a comment

David Stockman wishes Janet Yellen a fond farewell. From Stockman at lewrockwell.com:

There is about to be a changing of the guard in the Eccles Building. That comes straight from the tweeter-in-chief, who actually verbalized his thoughts on the matter during interviews yesterday:

I tell you what, she was in my office three days ago. She was very impressive. I like her a lot. I mean, it’s somebody that I am thinking about……(but) I have to say you’d like to make your own mark….

We’ll take the bolded phrase as gold watch time for Janet Yellen upon expiration of her term in February. And with a full measure of Trumpian gusto, we’d also say: GOOD RIDDANCE!

When the story is finally written about how capitalism was strangled and America impoverished during the first quarter of the 21st century, Janet Yellen will rank high on the list of villains – right along with Ben Bernanke and Alan Greenspan.

Their unforgivable sin was to systematically falsify the most important prices in all of capitalism – the prices of money, debt and other financial assets.

They did so in the arrogant and erroneous belief that 12 mortals on the FOMC can improve upon the work of millions of consumers, producers, workers, entrepreneurs, savers, investors and speculators on the free market; and that it’s possible to centrally plan and manage a $19 trillion economy by fiddling with interest rates, manipulating the yield curve and massively and fraudulently monetizing the public debt.

For want of a better term, we refer to this entire, misbegotten Greenspan-Bernanke-Yellen doctrine as Bubble Finance. That’s because in an open world economy flooded with cheap labor and capital, current Fed policy ultimately generates destructive financial bubbles on Wall Street, not sustainable prosperity on main street.

To continue reading: Good Riddance And Look Out Below

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Why Doesn’t Janet Yellen Resign? by Raúl Ilargi Meijer

Posted on September 27, 2017 | Leave a comment

Janet Yellen won’t resign because then she’d be unimportant and nobody would pay attention to her. From Raúl Ilargi Meijer at theautomaticearth.com:

You would think, certainly if you were as naive and innocent as I am, that when you get offered the job of Chair of the Federal Reserve, you must be sure, before accepting, that you have the credentials and the knowledge required. If you don’t, it looks as if you don’t take the job seriously. Janet Yellen, who’s been Chair since January 2014, doesn’t seem to agree.

In a speech Tuesday for the National Association for Business Economics Yellen ‘honestly’ admitted that she doesn’t understand inflation, control of which is the Fed’s no.1 task (it’s debatable whether that’s a good idea). She doesn’t understand a bunch of other issues either. Those are her own words, not mine. Here are these own words:

“My colleagues and I may have misjudged the strength of the labor market, the degree to which longer-run inflation expectations are consistent with our inflation objective, or even the fundamental forces driving inflation..”

Clear enough, you would think. But she didn’t offer her resignation. And for an important post like Fed chair, that is a major problem. As she undoubtedly does. So why is she keeping her job? Doesn’t she realize that when you don’t understand the issues you deal with, you’re prone to make disastrous mistakes?

Yellen and her colleagues work with models, and the models are wrong. The Fed’s predictions for things like inflation are ridiculously off, all the time. That may be news to her, but it’s old hash for many people in her field. So that she’s surrounded solely by people who don’t understand these things either is not an excuse.

So what does she expect now? That she will start to understand them all of a sudden, after years and years of not being able to? That reality will change to comply with her models? We can discount the option that she will suddenly begin using entirely different models, they’re all she has. But what then?

Under her predecessor Ben Bernanke, who never conceded he had no idea either but still didn’t, the Fed lowered interest rates to near zero Kelvin and bought trillions of dollars in bonds and securities. Now Yellen for some reason thinks it’s time to get rid of the stuff.

To continue reading: Why Doesn’t Janet Yellen Resign?

 

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