Janet Yellen Shames Congress For Austerity, Being Terrible

[kpete]

Source: Huffington Post

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.

Read more: http://www.huffingtonpost.com/2013/11/14/janet-yellen-congress_n_4275572.html

[geek tragedy]

1. you beat me to it, DU rec nt

[livetohike]

2. Good for her! Get it on the record and let them moan and groan. It's about time someone stood

up to them and in their face.

[Gothmog]

3. I like this lady

I think that she is going to be a great head of the Fed

[frazzled]

4. Exactly what Bernanke has told them

As even the article explains at the end. So far, Yellen and Bernanke on same page.

Bernanke, himself a Republican, has made it a habit this year to complain about Congress at every Congressional hearing in which he appears. The Fed's monetary policy committee has mentioned the drag from fiscal policy in every one of its policy statements since March of this year.

[DallasNE]

5. "Fiscal policy has been working at cross purposes to monetary policy,"

I'm sure I have posted those exact words a number of times. But that takes no special insight. It just takes a little reporting so it doesn't show up as a surprise when someone like Yellen says it. Sadly, monetary policy will work at cross purposes in FY2014 because no agreement will be forthcoming from the joint budget conference and the government will again shut down. And when it does it will be worse than the $24 billion for the last 16 day partial shutdown for two reasons. Some of the extraordinary measures taken last time were one time events not available this time around then "round two" of sequester kicks in to accelerate the budding disaster. If she is back for testimony tomorrow I hope she fires a shot across the bow regarding the consequences of another shutdown.

[Laelth]

6. k&r for the truth. n/t

This:

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.

-Laelth

[CTyankee]

7. Paul Krugman loves her. That's enough of a recommendation for me!

[mountain grammy]

14. Me too.

[bahrbearian]

8. Doesn't she have to be approved by congress before she gets the job.

Talk softy hide the big stick.

[elleng]

9. The Senate

[NewJeffCT]

12. Isn't her nomination being blocked

or, it was being blocked?

[elleng]

13. There was a threat.

She sailed through committee hearing today. We'll see what happens.

http://politicalticker.blogs.cnn.com/2013/10/30/rand-paul-threatens-to-block-yellen-nomination-vote/comment-page-1/

http://www.huffingtonpost.com/2013/10/30/john-mccain-janet-yellen_n_4179752.html

[JEFF9K]

10. She didn't raise her voice. I thought she would be Yellin'!

[Bolo Boffin]

11. She just spoke the truth, and it sounded like Yellin'!

Apologies to Harry Truman.

[KoKo]

15. Nice Post! Let's hope Liz Warren has given Janet Y a VOICE!

RECOMMEND! A glimmer of hope against "AUSTERITY FOREVER?"

[Jesus Malverde]

16. Yellen deftly navigates Fed confirmation hearing

t her confirmation hearing, Janet L. Yellen demonstrated two qualities that analysts said led to her nomination as the next Federal Reserve chief: a commitment to continuing its aggressive stimulus efforts and a low-key ability to build consensus by disarming her critics.

The former UC Berkeley economist avoided roiling financial markets or Republican skeptics of the Fed's policies during more than two hours of questions Thursday from the Senate Banking Committee.

And that should put Yellen on course to be confirmed as the first woman to head the world's most powerful central bank, said Chris Krueger, a senior policy analyst at financial services firm Guggenheim Securities in Washington.

"I thought she pitched close to a perfect game," he said.

The committee could vote on Yellen's nomination as early as next week.

http://www.latimes.com/business/la-fi-yellen-fed-hearing-20131115,0,5580957.story#axzz2kg7Iqg3j

[Nye Bevan]

17. Good. She knows she is an absolute lock for the nomination,

and the hearings are pretty much a foregone conclusion. So she might as well tell them what she really thinks of them.

[golfguru]

18. If printing money is the answer,

why is'nt Zimbabwe the most prosperous country on earth?
Why did the Wiemar republic collapse in spite of printing obscene amounts of money?
Why does modern day Germany have the strongest economy in Europe with tight fisted fiscal policies? Could be they learned the lessons first hand?

[Ikonoklast]

19. Wow.

You really don't understand how things work, do you?


Tight monetary policy right now would kill this economy. Not hurt it badly, kill it dead.

Like Germany almost did to the entire EU economy.

[golfguru]

27. There is a difference between printing money and easy monetary policy

Printing excess fiat money not backed up with anything has never created prosperity for any country that I know of. Can you cite some example where such foolishness created prosperity?

For me easy monetary policy means banks should be required to make small business loans, mortgage loans, student loans etc. with depositor's money. That is real exercise of easy monetary policy. That depositor's money does not belong in derivatives and MBS. Big banks are taking big risks to make big profits and if they lose, they get bailed out.

[Ikonoklast]

29. Straw Man argument. The "printing excess money" line is bullshit.

We would currently be suffering from massive inflation, whereas we were almost on the edge of deflation just three short years ago, much more difficult to stop once the downward spiral starts.

Libertarian nonsense repeated by Paulites who would crash the economy if they got their way.

[bemildred]

20. Ignorant simple-minded twaddle, Sir.

All our money is printed money, there is no other worth mentioning, most of it is not even paper. The question is how much to best tune the economy, not what's the least we can possibly have. It's not real, we can do as we like about it, and we will.

Look at the morons you are getting in bed with here, the likes of Gohmert and Palin.

[JEFF9K]

22. You are smarter than Paul Krugman?

[golfguru]

28. In some respects yes.

PK has no experience outside of theoretical world of college economics.
Has he ever worked for any main street business? I actually have. But
yes, he is smarter than me in theoretical economics.

[bemildred]

30. You are quite right that you can't run a business that way.

But the government is not a business and ought not be run like a business. It is a mark of ignorance to think it is or ought to be. The government's job is to organize the economy and regulate businesses so they operate for the general good (to some extent), and more important do not do long term general harm. And it provides infrastructure for us all, which is expensive and provides no direct profit, it is investment without expectation. Sometimes you have to do that or YOU get left behind.

[JEFF9K]

32. Krugman has all kinds of experience ...

College professor, author, columnist, pundit, talk-show guest, world traveler ...

Most importantly, he is RIGHT far more often than anyone else.

[jakeXT]

24. Because they don't have a world reserve currency. /nt

[wilt the stilt]

21. Never let the South create an economy

They have never looked out for the country. They only look out for their region. Their idea of creating an economy is stealing industries and jobs from other parts of the country. They are a 3rd world economy.

[JPK]

23. True that.....

The south attracts business by huge tax give aways and using "right to work" as a way to keep wages in the dumper. The tax burden is then shifted to an already over taxed middle and lower class. Add to that aging infrastructure with no tax revenues to improve them except by getting federal dollars. They are welfare states being run by oligarchs and religious fascists. Go to South Carolina. It's like going back in time. It is mostly an agrarian economy with some manufacturing and a lot of military bases. Same goes for many of the 'Old South" states.

[Uncle Joe]

25. Kicked and recommended.

Thanks for the thread, kpete.

[ReRe]

26. K&R

I like her. She's a definite far-cry from Alan Greenspan.

[roamer65]

31. It wasn't Congress that ruined the economy, Ms Yellen.

That was Easy Al and his ultra cheap money after 9/11 that created the housing bubble. That falls squarely on steps of the Federal Reserve. The Fed needs to own up to its failure.

You are right that Congress can and should do more to increase stimulus...basically to get us out of the Federal Reserve's major blunder.