Let me just start by saying that I have never had any dealings with Janet Yellen, nor do I know anyone who has. My conclusions, therefore, are based on her philosophies more than anything else. It is one’s viewpoints that, to me, trump all other considerations when it comes to deciding who should run the Fed. Past mistakes in our economic history can often be traced to the fact that many people make their decisions based on comfort levels, not necessary change. Janet is comfortable to the 1% crowd.
Janet may be the funniest and smartest woman in town. She may be able to rapid-fire facts and figures in a way that would make a Jeopardy champion envious. She may even be able to bake chocolate chip cookies that would rival Hillary Clinton’s, but that can’t make up for her underlying philosophical beliefs. Janet Yellen is a Keynesian.Read More
George Will has noted, the curious journalistic acceptance of the Fed’s increased powers “…semantic infiltration of journalism by language that ratifies the Fed’s increasingly grandiose role. A Financial Times column on Yellen, now Bernanke’s presumptive successor, described her as “poised to take the tiller of the US economy.” Oh? The economy has a tiller? And with it the Fed chairman can steer the economy? Who knew?” Free markets with tillers. Interesting concept, and it has been cleverly and stealthily slipped passed the goal line.
Nothing in the Fed’s mandate directs the Fed to “tiller” the economy. Its new powers are a result of confiscatory creep. Stock market going up, all good. Gone, or ignored, is any language that encourages savings, defends the value of the dollar, or, as mentioned in its mission statement, provides “moderate” interest rates.Read More