Did Janet Yellen say "Let them Eat Cake"?

[marlene.elyse]

46. One of my favorite topics..

If Janet Yellen's advice is that we need to save, that is absurd.

Not to mention the fact that we are in a recession so we need all possible dollars to be moving around the economy right now. The Fed sets the policy that encourages saving or investing.

The Federal Funds rate(the rate bankers loan to one another) has been at zero for years. This was an attempt to try to stimulate the economy and get banks to make loans. When that didn't work they started Quantitative Easing. So the Fed is investing in longer term treasuries and mortgage-backed securities, etc. Creating money and pumping huge amounts into the banking system.

At the same time, our congress decided we needed to cut spending and suffer austerity. Even if the banks were willing to loan, there is no demand. So all this free money is encouraging speculation by the banks, the stock market is through the roof. The more money they print, the more the dollars we are holding are devalued. And with the rates being kept low, there is no incentive for saving.

Anyway, this is my understanding of our current situation.

If you haven't seen it, I would recommend watching the Four Horsemen documentary on youtube.