The Huffington Post loves it, of course: “Janet Yellen Shames Congress For Austerity, Being Terrible.” Right. We have a seventeen-plus-trillion-dollar debt because of austerity.
It looks like Janet Yellen will have no problem tackling one of Ben Bernanke’s most important jobs: shaming Congress for ruining the economy.
Yellen reminded lawmakers of their sheer terribleness during a Senate Banking Committee hearing on Thursday about her nomination to replace Bernanke as chair of the Federal Reserve when his term ends in January. Republican senators moaned and groaned, as usual, about the Fed’s extreme easy-money policies. Yellen reminded everybody that Congress has forced the Fed to act by constantly imposing harsh austerity measures on an economy still recovering from a financial crisis and deep recession.
“Fiscal policy has been working at cross purposes to monetary policy,” Yellen said. “Some of the near-term reductions in spending that we have seen have certainly detracted from the momentum of the economy and from demand, making it harder for the Fed to get the economy moving, making our task more difficult.
“We are worried about a fragile recovery, and a more supportive fiscal policy, or one that at least had less drag, that did no harm, would make life easier,” she added later.
Yellen was referring to the austerity that has come out of a rolling series of debt crises instigated by Republicans in the past few years, including the deep budget cuts known as sequestration and this year’s payroll-tax increase. Under pressure from Republicans, the federal government has cut spending at the fastest pace since the end of the Vietnam War. Government investment has tumbled to its lowest level as a percentage of GDP since 1948.
Yellen is out of her mind, as are the staff of the Huffington Post. Does this look like austerity?
No it does not, because austerity is nowhere to be found.The story linked by HuffPo to prove spending cuts says the opposite. “Total government spending continues to increase…” They make up a reason why this is not enough, claiming that spending on Social Security doesn’t help the economy as much as other kinds of spending. It is all crazy talk that is supported by zero evidence. They make up garbage about how there would be more jobs is only we had built up more debt and used it for more “investment”—i.e. spending on make-work jobs.
Worse, Yellen had the audacity to accuse Congress of income inequality. The Federal Reserve is the reason for the growing income gap. Yellen runs the machine that poisons the nation and sits there pontificating about how it is the fault of Congress.
These people really believe that borrowing to spend is the key to prosperity. Any textbook on the history of civilizations will tell you that civilizations arise when there is enough capital accumulated through savings to develop a surplus, but these superstitious “economists” think that it comes from borrowing against the future.
These people are dangerous and delusional. Janet Yellen may not have mentioned space aliens, but her economics tell us she should be wearing a tin foil hat.