Rejoice: The Yellen Fed will Print Money Forever to Create Jobs!

• “For my own part, I did not see and did not appreciate what the risks were   with securitization, the credit ratings agencies, the shadow banking system… I didn’t see any of that coming until it happened.”
  – Janet Yellen in testimony to a congressional committee in 2010!
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• Remarks mine:
• Rejoice: the Yellen Fed will print money forever to create jobs! 
  by Ambrose Evans-Pritchard, http://www.telegraph.co.uk/ 
  We now know where we stand. Janet Yellen is to take over the US Federal Reserve, the world’s monetary hegemon, the master of all our lives.
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  The Fed will be looser for longer. The FOMC will continue to print money until the US economy creates enough jobs to reignite wage pressures and inflation, regardless of asset bubbles, or collateral damage along the way.
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  No Fed chief in history has been better qualified. She is a glaring contrast to Alan Greenspan, a political speech writer for Richard Nixon, who never earned a real PhD (it was honorary) or penned an economic paper of depth.
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  She has pedigree. Her husband is Nobel laureate George Akerlof, the scourge of efficient markets theory. She co-authored “Market for Lemons”, the paper that won the prize.
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  Currently vice-chairman of the Fed, she was a junior governor from 1994 to 1997 under Greenspan, and then president of the San Francisco Fed from 2004 to 2010. She was head of Bill Clinton’s Council of Economic Advisers from 1997 to 1999, when she handled the Asian crisis. You could hardly find a safer pair of hands.
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  Note that she confronted Greenspan head-on in 1996, pushing for pre-emptive rate rises to choke inflation and wean the economy of cheap credit. She was entirely right to do so. That was the moment when the Fed began to make a series of fatal errors, becoming addicted to ever lower real interest rates. Nobody called her a dove then.
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  She was on the other side a decade later during those crucial months before the subprime housing crash, quick to sense the danger of a chain reaction through the shadow banking system. Ben Bernanke and the FOMC majority scoffed at worries that the subprime debacle was the tip of an iceberg.
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  “I feel the presence of a 600-pound gorilla in the room, and that is the housing sector. The risk for further significant deterioration, with house prices falling and mortgage delinquencies rising, causes me appreciable angst,” she told Fed colleagues in June 2007, a 15 months before the storm hit. (This is propaganda! See: Janet Yellen On The Financial Crisis: “I Didn’t See Any Of That Coming Until It Happened” – zerohedge.com)
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  read more!

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