Did Janet Yellen say "Let them Eat Cake"?

[AdHocSolver]

76. Good description of how the system works to transfer middle class assets to the 1 percent.

Jobs are created when there is demand for goods and services.

The money given to the wealthy will NOT create jobs when there is no demand.

Does General Motors hire workers and expand production when few people are buying cars?

Would prudent consumers buy stuff when the value of their assets is deteriorating when keeping them in bank accounts paying 0.1 percent interest while the real inflation rate is eating the value of their wages (assuming they have a job).

This is one of the mechanisms that is transferring the assets of the middle class to the corporate 1 percent: The Federal Reserve is duplicitous in this scheme and has been from the beginning (think Greenspan, Bernanke, and ,now, Yellen for this current round of thievery.)

The banks pay around 0.1 percent interest to depositors for the use of their money. They collect 14 percent (or more) on unpaid balances on credit cards. The banks collect, in this case, 140 times the cost of the use of depositors' money ( 0.14 / 0.001 = 140). The Fed makes sure all banks comply with paying low interest rates to prevent competition by the banks to attract depositors by offering higher interest on deposits.

Since demand for goods is too low for corporations to make money merely from producing goods, the banks "lend" money to Wall Street (made legal again due to repeal of the Glass-Steagall Act) to buy out and merge once competing companies, fire "duplicate" employees to boost next quarters' profits, and get away with raising prices since there is now less competition.

The stock market is at record high levels because of all the money being thrown at it. Wall Street "speculators" and corporate insiders "borrow" money at low interest rates, buy up a targeted company's stock, wait for the "suckers" to invest driving up the price still further, and then sell their shares at huge profits.

How quickly the Enron scam has been forgotten.

The Federal Reserve is a central bank run by the banks and Wall Street for their benefit. Forget mission statements and reputed policy goals. Look at what they do and what are the results.