Federal Reserve Chair Janet L. Yellen spoke today, April 16, at the Economic Club of New York, on monetary policy and the economic“recovery.” As for exactly who is “recovering,” we would expect it is those receiving the newly printed cash. Those who are the source of this “recovery” are those losing purchasing power from the Fed’s monetary policy. Former Fed Chair Ben Bernanke said a few days ago that U.S. “households’ wealth has been restored” as the result of years of the Fed’s printing program. But this is true only in nominal terms (real purchasing power has fallen even further than accounted for) and when speaking in aggregates, masking the transfer of wealth from the middle classes and poor to the oligarchy.
By silveristhenew | Published April 16, 2014
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