The Printing Will Continue Until The Economy Improves! - Granite Grok

The Printing Will Continue Until The Economy Improves!

Pumping up the 1% and impoverishing the rest of us. Artwork by William Banzai 7
Pumping up the 1% and impoverishing the rest of us. Artwork by William Banzai 7
Or, restated, the flogging of the printing presses will continue until national morale improves!

After the destruction of Larry Summers by the Feminazis, Obama announced this Wednesday that he would nominate Jenet Yellen, current vice chair of the Federal Reserve, to take over from Chairman Ben Bernanke when his term ends in January.

Why ‘Plunder Woman’?

Because, money printing is plunder, whereby those who know the system, have the connections, and can trade on the bubbles created by the money printing, build their wealth, even as the declining value of the dollar and rising prices, makes the rest of us poorer.

As we pointed out in the prior article, the Federal Reserve has been continuously debasing the dollar in the name of stimulus (and incidentally, keeping the government afloat), and there is great danger that the Fed will lose control. The longer the printing goes on, the greater the risk of passing that point of no return, whereby the economy will crash if they stop printing, and the dollar will crash if they don’t.

Yellen is a maximum 'dove' Chart: Credit Suisse, H/T Zerohedge.com
Yellen is a maximum ‘dove’
Chart: Credit Suisse, H/T Zerohedge.com
As you can see in this chart, Yellen is at the ‘maximum dove’ end of the spectrum, and she helped Bernanke craft the ‘Quantitative Easing’ programs. Any guesses as to whether she’s the one who will stand up and holler “Stop the presses!”? I didn’t think so, either.

In his announcement,

The president said Ms. Yellen was “renowned for her good judgment,” and he credited her with sounding early alarms about the financial and housing bubbles that caused the economy’s near-collapse in 2008.

“Given the urgent economic challenges facing our nation, I urge the Senate to confirm Janet without delay,” Mr. Obama said. “I’m absolutely confident that she will be an exceptional chair of the Federal Reserve.” (from the NY Times)

(If a constant supply of crack dollars to keep your government afloat is what you crave, you’d be praising her, too!) Foreign central bankers fall into two camps, those who welcome the printing, because they are doing the same, and those who sound a cautionary note (WSJ):

Canadian Finance Minister Jim Flaherty, an outspoken critic of the Fed’s bond-buying program, was reserved in his comments on Ms. Yellen. “The choice of the chairman of the reserve bank is the president’s choice. And he made his choice,” he said.

Yi Gang, deputy governor of the People’s Bank of China didn’t comment on Ms. Yellen’s nomination, but he too said that international markets need an “orderly, well-communicated tapering” of bond purchases by the Fed. China is the largest foreign holder of U.S. treasuries.

(Good luck with that orderly taper of the printing!)

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