Federal Reserve Defense Pamphlet: Janet Yellen Edition
The latest spirited defense of the Federal Reserve system, and, implicitly, its totally uselessness, comes out of Fed apologist # xxx, FRBSF president Janet Yellen, who has jumped on the "St. Ben at the Top of the Polytheistic Parthenon" bandwagon. Yet Ms. Yellen's entire missive (attached below) boils down to the following paragraph:
This raises the broader—and very contentious—issue of whether monetary policy should seek to lean against potentially dangerous swings in asset prices. The answer is far from clear, because the use of monetary policy for these ends necessarily compromises the attainment of other macroeconomic goals. Because such use of monetary policy is costly, high priority should be assigned to developing regulatory tools to address systemic risk. Even so, the crisis of the past two years has prompted many of us to reexamine the widely held view that monetary policy should respond to asset prices only to the extent that they influence the anticipated trajectories of inflation and unemployment. Further research into the connections among monetary policy, the banking and financial sectors, and systemic risk is needed to help answer this question.
Ms. Yellen: we respectfully would like to say that you could not be more wrong. In essence your question of whether the Fed should inflate asset bubbles, defines the Fed's completely perverted and flawed agenda better than any other tongue-in-cheek elaboration for the continued worthless existence of your money printing syndicate.
That you conclude that "further research" is needed is precisely the demagogic bullshit the American public (of which 75% has said no more Fed secrecy ever, yet you and your cabal of Wall Street facilitators continues to ignore, at your own peril we might add) has grown to expect out of your ranks, and, not unexpectedly, grown to despise. Our only solace is that this is the very last bubble the Fed will blow. As that other puppet from the IMF said earlier, expect the complete devolution of contemporary society if in your infinite wisdom you proceed to bailout those responsible, for (and getting ever richer courtesy of) the current bubble. Which is why, Ms. Yellen, we suggest you pray that somehow you manage to keep inflating the massive ponzi house of cards you have started filling with so much hot air, for ever, or at least until such time as you are retired and far away from the loci of the various regional Federal Reserve Boards. Because not just 75% but the entire US population, will not take kindly to your destruction of all the built up multi-generational middle class wealth in the span of one Goldman calendar year (either December 31 or November 30 FYE). Which is precisely what you are in the process of doing, and no further taxpayer money needs to be spent on additional futile research.