Janet Yellen ‘has been consistently right’?

by Aug 22, 2013Liberty & Economy0 comments

Paul Krugman writes in his blog, in support of her bid as Fed Chairman, that Janet Yellen "has been consistently right'. Keeping in mind that this is coming from the guy who advocated that the Fed lower interest rates in order to create a housing bubble, I spent 2 minutes Googling Yellen's record

Paul Krugman writes in his blog, in support of her bid as Fed Chairman, that Janet Yellen “has been consistently right’.

Keeping in mind that this is coming from the guy who advocated that the Fed lower interest rates in order to create a housing bubble, I spent 2 minutes Googling Yellen’s record on the bubble and found the following, from a speech she gave in 2005. While she did seem to recognize that there was a bubble — hardly much of a feat; Krugman, too, by 2005 recognized this, but few were calling it as early as Ron Paul, who predicted it as early as 2001, when the Fed began its low-interest rate policy in the wake of the dot-com bubble. And while Ron Paul was warning years prior that the housing bubble, when it burst, would precipitate a major financial crisis, here’s what Yellen had to say about it:

First, if the bubble were to collapse on its own, would the effect on the economy be exceedingly large? Second, is it unlikely that the Fed could mitigate the consequences? Third, is monetary policy the best tool to use to deflate a house-price bubble?

My answers to these questions in the shortest possible form are, “no,” “no,” and “no.”

She went on to argue against a “tighter policy”, meaning that the Fed should continue its inflationary monetary policy to lower interest rates — the very policy that caused the housing bubble.

Did you find value in this content? If so and you have the means, please consider supporting my independent journalism.

About Jeremy R. Hammond

About Jeremy R. Hammond

I am an independent journalist, political analyst, publisher and editor of Foreign Policy Journal, book author, and writing coach.

My writings empower readers with the knowledge they need to see through state propaganda intended to manufacture their consent for criminal government policies.

By recognizing when we are being lied to and why, we can fight effectively for liberty, peace, and justice, in order to create a better world for ourselves, our children, and future generations of humanity.

Please join my growing community of readers!

 

Download my free report 5 Horrifying Facts about the FDA Vaccine Approval Process.

Download my free report 5 Horrifying Facts about the FDA Vaccine Approval Process.

My Books

Related Articles

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

Shares
Share This