What Fed Chair Janet Yellen DIDN’T Tell Congress Last Week

Guest Post by Anthony Sanders

Last week, Federal Reserve Chair Janet Yellen gave her semi-annual presentation to Congress (Senate one day, The House the other day) on the economy. Unfortunately for Congress, Yellen left out a few things.

The Fed began massive intervention in financial markets in 2007 by dropping The Fed Funds Target Rate. That didn’t work, so The Fed began QE (massive asset purchases in late 2008 then went “whole hog” in 2012 with QE3).

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How well did QE work? If their goal was leveling the playing field in terms of income inequality, it was an abysmal failure. Since 2007, the GINI index of income inequality has risen and real median household income has fallen.

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On the other hand, QE has helped home prices (and household equity in housing) to recover to near housing bubble highs (and exceed it in parts of California).

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The rapid rise in housing prices was NOT accompanied by a rapid rise in mortgage purchase applications. Rather, we did see a rapid rise in foreign investment in housing (particularly on the west coast). And I already mentioned, real median household income has fallen since 2007 (along with labor force participation).

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Yellen also failed to mention the rise in bank risk that has been brewing.

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And that shipping has fallen off a cliff (reminiscent of the Ben Affleck film “Reindeer Games.”)

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So now you know why Yellen has been telling Tomahawk stories to Congress.

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rhs jr
rhs jr

I used to see most trains were five engines and 300 cars but now they are one engine and 50 cars. We used to see the sky and puffy clouds but it’s often obscured by chemtrails now. There used to be lots of butterflies, lightning bugs, bees, June bugs, dragon flies, moths, bats, songbirds etc but they are gone just like the manufacturing jobs. Now cash money is on TPTB list for extinction. A vote for Trump is a vote to kick TPTB in their traitorous fat Keisters.

nkit
nkit
Westcoaster
Westcoaster

@Rhsjr: “A vote for Trump is a vote to continue with the same bullshit, since he’s part of the 1/10th of 1%.” There, fixed it for ‘ya.

Vote for your own best interests. Best way to do that is to examine what the candidates have been doing long term. Watch this exchange with one of the candidates and Alan Greenspan from 13 years ago:

fear&loathing

my senator kaine Va sent me a response to audit the fed, in the letter he claimed it has been done on a regular basis. all is fine and good nothing to be concerned about. the GAO is watching my back, trust your government then shut up, we know best.

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