Serving as the U.S. Secretary of the Treasury comes with a heavy burden. The individual in this role is tasked with signing the Federal Reserve’s currency notes, effectively endorsing money that many argue is unconstitutional. This signature serves as a public affirmation of a monetary system that raises questions about its legitimacy.
As established by Article I, Section 8 of the U.S. Constitution, the authority to coin money and regulate its value lies with Congress. Moreover, Section 10 of the same article states that currency must be minted from gold and silver, explicitly prohibiting bills of credit.
This means that paper dollars are technically unconstitutional for two significant reasons. First, they are issued by the Federal Reserve rather than Congress. Second, they function as bills of credit without any backing of gold or silver.
Many Americans seem unconcerned about this legal discrepancy, but they should be. The pitfalls of using illegal currency, like paper dollars, are significant. Primarily, they are vulnerable to excessive issuance for political motives, which allows unchecked government expansion and undermines the currency’s value over time.
Indeed, illegal currency is fraught with issues, and the individual poised to further escalate these problems is President Biden’s Treasury Secretary nominee, Janet Yellen.
Deceptive and Cruel
Janet Yellen served as the Chair of the Federal Reserve from 2014 to 2018, making her only the second person to hold both positions of Fed Chair and Treasury Secretary, following G. William Miller, who faced rampant inflation during his term under President Carter.
Yellen, like Miller, is now in a position to authorize the very money she once oversaw as Fed Chair. The implications could be equally concerning or perhaps even worse.
Before her chairmanship, Yellen held various roles within the Federal Reserve for over 20 years. While the details of her contributions during that time remain somewhat unclear, she was undeniably part of an era marked by aggressive Federal Reserve interventions.
Yellen has seriously engaged with economic data, analyzing how monetary policy can be manipulated to boost spending. She also frames monetary policy as a moral issue. During a Federal Open Market Committee meeting in 1995, she advocated for allowing inflation rates to exceed targets based on ethical grounds. The Economic Policy Journal noted her remarks:
“Ms. Yellen told the committee that ‘the moral’ of all this is ‘that the Fed should pursue multiple goals.’ She said that ‘when the goals conflict and it comes to calling for tough trade-offs, to me, a wise and humane policy is occasionally to let inflation rise even when inflation is running above target.’”
It is crucial to remember that inflation acts like a hidden tax on savers, eroding the purchasing power of their savings. This impacts retirees on fixed incomes and individuals who are diligently saving for the future. Inflationary policies are not wise or compassionate; they are misleading and harmful.
Janet Yellen: Too Dumb To Stop
Despite her extensive experience, Yellen continues to believe she holds the moral high ground. Driven by flawed economic models, she operates under the illusion that her actions are beneficial, all while potentially inflicting harm.
Over the last four decades, fiscal and monetary policies have increasingly leaned towards intervention. During this time, Yellen and other central planners have endorsed inflation as a means to stimulate economic demand perpetually.
The Federal Reserve generates this illegal money, while the Treasury grants it legitimacy. Consequently, the economy adjusts in response.
This illegal currency facilitates all business transactions, effectively monopolizing the means of commerce.
The rampant issuance of illegal money has warped the economy, disproportionately enriching asset holders while leaving many wage earners struggling financially. Sadly, Yellen remains oblivious to the need for change. Following her nomination announcement, she tweeted:
“We face great challenges as a country right now. To recover, we must restore the American dream—a society where each person can rise to their potential and dream even bigger for their children. As Treasury Secretary, I will work every day towards rebuilding that dream for all.”
But what concrete steps will Yellen, as Treasury Secretary, take to revive the American dream? Will she foster new business opportunities and job creation?
Likely not; such initiatives are beyond the scope of a Treasury Secretary’s role. However, Yellen can coordinate with the Fed and Congress to authorize further unauthorized money printing.
If Yellen opts to repeat the credit expansion seen from 1980 to 2019, we may witness heightened inflation in financial markets. Conversely, if she follows the CARES Act model and distributes checks directly to citizens, consumer prices will inevitably rise. It’s possible that her moral convictions might compel her to do both.
Regardless, it is clear that Yellen will not be able to restore the credibility and trust necessary for the dollar’s survival. Without that trust, the hope of reviving the American Dream remains bleak.
Sincerely,
MN Gordon
for Economic Prism
Return from Janet Yellen: Too Dumb To Stop to Economic Prism
