Hunter Lewis on Janet Yellen

FISCAL MONITORWhen President Obama nominated Janet Yellen to the Fed as vice-chairman in 2010, some Republicans also voted against her. Now, finally, we have a real litmus test.

Anyone voting for Yellen [to be confirmed as Fed Chairman] is a Keynesian and therefore an “old” Republican. Anyone voting against her is a “new”  Republican like Senators Rand Paul or Ted Cruz. We will  be able to identify clearly the players on each team.

Why does any of this matter to the average American? 

It matters because  today’s Fed, whether led by a Republican such as Bernanke or a Democrat such as Yellen, is wrecking the economy,  spoiling any chance for a sustainable recovery, and thereby depriving our children of an economic  future.

I have benefited personally by the Fed under Bernanke printing funny money and giving it to the stock market.  But the benefit to me and others who own stocks is bittersweet if it comes at the expense of the economy as a whole, making it harder for the middle class to get ahead. It’s harder for me to enjoy those gains when Obama and the Fed are making me feel guilty about it because those gains are artificial and don’t represent any real accretion of wealth in the country.  When stock market gains result from real wealth creation the owner of stock is just getting a share of the wealth as a fair return on his capital investment.

It’s not exactly like Obama describes how rich people get their money. Most of them get it through thrift and hard work. I think that’s how I got what I have.  Obama knows better but he buys loyalty and adulation by lying to the poor and encouraging them to believe that evil rich people stole all the money and that’s why they’re poor.  Of course, that’s rubbish and the poor are poor for a myriad of reasons.  But Fed policies, while helping those with stock market holdings, are definitely hurting the middle class by preventing them from getting ahead, and doing a pretty good job of keeping the poor from climbing out of the hole they’re in as well.

If Obama knows this he’s evil. If he doesn’t know it he’s incompetent. I have no idea what drives Bernanke, and now Yellen.  I’m pretty sure a day of reckoning is coming, sometime.

Read the whole thing.