The Babble-On 7: The Fed And Yellen

Allow me to introduce the Babble-On 7: the six board members of the Federal Reserve and Treasury chief Janet Yellen. (The Fed board has seven slots but one is vacant at the moment, so 6 + Yellen = 7.)

These seven lackeys of the Financial Aristocracy babble on, endlessly repeating the same disconnected-from-reality fantasies and delusions, apparently on the premise that if they repeat "you can fly, you can fly!" often enough, people will jump off the cliff actually believing the Fed and Treasury gave them super-powers to sprout wings at will.

Alas, denying reality does not stop reality from intruding, typically with great force. The Fed is not all-powerful, and wings will not sprout from believers' shoulder blades. They will impact the rocks at the bottom of the cliff with the devastating force known as gravity.

The shortlist of endlessly spewed disconnected-from-reality fantasies and delusions by the Babble-On 7 are:

Fantasy/Delusion # 1. The Federal Reserve's policies of free money for financiers and speculators did not cause or exacerbate the skyrocketing wealth-income inequality that is undermining America's democracy, social order and economy.

If the Fed governors were Pinocchio, their noses would have now crossed the Grand Canyon. Please examine any chart of wealth-income inequality in the U.S. and note how it took off as former Fed chair Greenspan destroyed market discovery of the price of credit and risk, and the Fed chair servants of the Financial Aristocracy who followed (and who were each well-rewarded for their abject servitude) only accelerated and amplified the wealth-income inequality that has fatally undermined the nation.

The chart below reflects how each of the three Fed-inflated speculative bubbles enriched the Financial Aristocracy at the expense of the bottom 90%. The Fed's most recent spew of free money for financiers and speculators enriched the billionaires by a cool $1 trillion.

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Disclosures: None.

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