Posts Tagged ‘Fed’

“Who did the most damage: Greenspan, Bernanke, or Yellen?…  When Mr. Greenspan took over at the Fed in August 1987, the government owed about $3 trillion… or about 40% of GDP.  Today, the national debt approaches $21 trillion – more than 100% of GDP.  Household and corporate debt levels have shown similar expansions. Overall, for the last 30 years, total (private and public) debt has grown about twice as fast as the economy that supports it….  And now, hundreds of millions of people depend on the EZ money economy created by Greenspan, Bernanke, and Yellen. Their jobs, their incomes, their investments, their retirements – all depend on keeping the fantasy alive.” -Bill Bonner

“Japan recently announced it was implementing a negative interest rate.  The central banks of Denmark, Norway, and the European Union are already using negative interest rates.  And last week, Janet Yellen, head of the Federal Reserve, said the Fed is considering it, too….  A negative interest rate means the price of money is below zero….  So why are central banks setting negative interest rates?  They’re experimenting.  They hope negative interest rates will lead people to spend more, and borrow more, and invest more.  They hope negative interest rates will lead to economic growth.  Why?  Because if it costs you to keep your money in the bank, you’ll have more incentive to take your money out and spend it.” -Tom Dyson

“In her magical mystery world at the Eccles Building (Fed HQ) Janet Yellen surveys all of this.  She has never run a business.  She has never even had a job in a profit-making business…..  Bernanke, in his new book, The Courage to Act, tells us that he ‘did not want to be remembered as the person whose decisions had led to the Fed’s destruction.’  That’s right: The biggest challenge hits the Fed in 80 years and Mr. Bernanke is worried about his own reputation!” -Bill Bonner

Perhaps this is the biggest problem with many of our institutions and politics.  We have leaders with no experience in the real world and care more about their reputation than doing what needs to done.