There is no surprise that Janet Yellin breezed through her confirmation hearing with flying colors. She appears to support the official Fed mantra that “bond buying is an effective tool to stimulate the economy”. Well, that is increasingly harder to argue with the explosive growth in the economic inventory of fabricated capital starts to find its way downward into the general economy, where faith in the value of the dollar trumps the value of the dollar thanks to a collective suspension of disbelief.
What appears as liability on the Treasury’s balance sheet and as assets on Fed’s balance sheet is nothing more than the United States stealing from its own future generations and the rest of the world. Or put another way, hopelessly encumbering future Americans with an exponentially increasing debt load and a proportionately diminishing equity in the nation’s finite resource wealth.
I can’t imagine what these people must tell themselves to maintain such a delusion. Especially in the case of Fed governors, who must not only espouse the policy but actually execute it. I mean, what do they tell their kids? “Honey Mommy’s going to kite cheques that you will have to pay for in your lifetime so her and Daddy and their friends can continue to live ridiculously high on the hog. But just remember we love you.”
The children of participants in this predatory scheme will, once the penny drops and they cotton on the fact that they are in fact now on the hook for a debt they had nothing to do with spending, will be a historically unique first where an entire generation despises their ancestors for their wanton disregard of mathematical reality.
The United States is incurring a debt at the rate of $85 billion per month that it has no realistic hope of repaying in this life time. Although, I shouldn’t say that. For if there’s one thing we should have learned by now not to underestimate is the current government-financial industry criminal enterprise’ ability to concoct new and nuanced forms of creative accounting.
Why the entire notion of Generally Accepted Accounting Practices must needs include the provision that either it doesn’t apply to governments and their sponsored affiliates (the Fed, Fannie Mae, Freddie Mac, AIG…) or include the clause that the compounding of debt many times in excess of the government’s ability to service it is okay as long as the populace at large can be fooled into believing that it is viable, legal and moral.
I have no doubt that Ben Bernanke’s decision to escape the public eye is predicated not least on Alan Greenspan’s example, where he is revered during his tenure but reviled by history as a fool. I think Ben is thinking that if he gets out now, then perhaps history will kindly forget his name if connection with this period which will ultimately be pointed to by future generations as the best example of how humanity can delude itself so thoroughly when it thinks its own interests are being served.
Janet, clearly in part eager to bear the banner on behalf of Women is either naive in her belief that rampant capital fabrication is actually a good thing, or she has made her peace with the idea that she will take one for the team just to get a leg up. Either way, she falls clearly into the “no end in sight” for the global currency debasement movement that modern economic theory and practice are apparently based on.
Glad I’m not an economist.
