Woman May Head Fed for First Time in 100 Years

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• Chances are good that Janet Yellen will be confirmed as 11th Jewish head of Federal Reserve

By Pete Papaherakles

On October 9, President Barack Hussein Obama nominated Janet Yellen as the new chairperson of the privately-owned-and-controlled Federal Reserve. If confirmed, she will become on January 31 the first woman to ever occupy that position in the Fed’s 100-year history. Her nomination comes as no surprise to anyone since the other frontrunner, Larry Summers, was unceremoniously dumped by the White House on September 15.

Since October 4, 2010, Ms. Yellen has been the vice chair of the Board of Governors of the Federal Reserve System, second only to the current chair, Ben Shalom Bernanke. She is extremely qualified for the position, as she has also been president and chief executive officer of the Federal Reserve Bank of San Francisco, chair of the White House Council of Economic Advisers under President Bill Clinton and professor emeritus at the University of California, Berkeley’s Haas School of Business, among her many other credentials.

Ms. Yellen is Jewish. Why is this important? Bernanke is also Jewish, as was Alan Greenspan before him. In fact, since the cartel’s inception in 1913, a whopping 9 of the 14 Fed chairmen, or nearly 65%, have been Jewish. Jews make up less than 2% of the United States population.

It might also have something to do with the fact that the Federal Reserve Bank is a consortium of nine Jewish-owned and associated banks with the Rothschilds at the head. By some accounts the Rothschilds of London hold 57% of the Fed’s stock, which is not available for public trading.

The vast majority of presidents and managing directors at the World Bank and the International Monetary Fund have also been Jewish, and these three entities together have a stranglehold on the planet’s finances and dictate its policies.

In that sense, one has to wonder what difference Ms. Yellen will really make since she is a figurehead for the international bankers. Although the Fed appears to be a government entity, in reality it’s a privately-owned cartel controlled by the City of London. Greenspan told PBS’s “Newshour” television talk show on September 18, 2007, “The Federal Reserve is an independent agency, which means basically that there is no other agency of government which can overrule actions that we take.”

Greenspan, a Fed chairman for two full decades, was a master at using doublespeak when communicating with the public, a Fed hallmark.

“I know you think you understand what you thought I said,” Greenspan is quoted as saying in an article by The Independent in London published on April 27, 2003, “but I’m not sure you realize that what you heard is not what I meant.”

The Fed has a public mandate to maintain price stability on the one hand and maximize employment on the other. Conservatives generally support price stability and are known as “hawks,” whereas liberals, more concerned with lowering unemployment, are called “doves.”

Ms. Yellen is considered a dove, with a track record of supporting previous “stimulus” packages. She has a reputation of being energetic and dynamic and for getting things done, but her detractors argue that she would do enormous damage as Fed chair by expansion of easy money policies that would cause prices to soar.

In response to Ms. Yellen’s nomination by Obama, she said she was committed to both parts of the Fed’s dual mandate. “We can help ensure that everyone has the opportunity to work hard and build a better life,” she said. “We can ensure that inflation remains in check and doesn’t undermine the benefits of a growing economy.”

Although Ms. Yellen likely will face opposition from some Republicans in the Senate, she is expected to be confirmed as the next Fed chair.

Some economists contend that inflation will have to rise once Ms. Yellen takes office and starts spreading money around. The only question is whether inflation will be kept at bearable levels or if the U.S. will turn into another Weimar Republic.

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Pete Papaherakles is a writer and political cartoonist for AFP and is also AFP’s outreach director. Pete is interested in getting AFP writers and editors on the podium at patriotic events. Call him at 202-544-5977 if you know of an event you think AFP should attend.

Hard Assets Alliance

Expect New Fed Chairman to Look Out for Bankers, Wall Street

By former Rep. Ron Paul

The news that Janet Yellen was nominated to become the next chairman of the Board of Governors of the Federal Reserve Systemwas greeted with joy by financial markets and the financial press. Wall Street saw Ms. Yellen’s nomination as a harbinger of continued easy money. Contrast this with the hand-wringing that took place when Larry Summers’s name was still in the running. Pundits worried that Summers would be too cautious, too hawkish on inflation, or too close to big banks.

The reality is that there wouldn’t have been a dime’s worth of difference between Ms. Yellen’s and Summers’s monetary policy. No matter who is at the top, the conduct of monetary policy will be largely unchanged: large-scale money printing to bail out big banks. There may be some fiddling around the edges, but any monetary policy changes will be in style only, not in substance.

What is obvious to most people not captured by the system is that the Fed’s loose monetary policy was the root cause of the current financial crisis. Just like the Great Depression, the stagflation of the 1970s and every other recession of the past century, the current crisis resulted from the creation of money and credit by the Federal Reserve, which led to unsustainable economic booms.

Rather than allowing the malinvestments and bad debts caused by its money creation to liquidate, the Fed continually tries to prop them up. It pumps more and more money into the system, piling debt on top of debt on top of debt. Ms. Yellen will continue along those lines, and she might even end up being Ben Bernanke on steroids.

To Ms. Yellen, the booms and busts of the business cycle are random, unforeseen events that take place just because. The possibility that the Fed itself could be responsible for the booms and busts of the cycle would never enter her head.

As a result, the American people will continue to suffer decreases in the purchasing power of the dollar and a diminished standard of living. The phony recovery we find ourselves in is only due to the Fed’s easy money policies. But the Fed cannot continue to purchase trillions of dollars of assets forever. Quantitative easing must end sometime, and at that point the economy will face the prospect of rising interest rates, mountains of bad debt and malinvested resources, and a Federal Reserve which holds several trillion dollars of worthless bonds.

The future of the U.S. economy with Chairman Yellen at the helm is grim indeed, which provides all the more reason to end our system of central economic planning by getting rid of the Federal Reserve entirely. Ripping off the bandage may hurt some in the short run, but in the long term everyone will be better off. Anyway, most of this pain will be borne by the politicians, big banks and other special interests who profit from the current system.

Ending this current system of crony capitalism and moving to sound money and free markets is the only way to return to economic prosperity and a vibrant middle class.

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