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Collectivist Banking

Now he Keynesian banker sings a different tune.

What Yellen Says Should ‘Keep People Awake at Night’

Outgoing Federal Reserve Chair Janet Yellen said Wednesday in testimony before Congress that the United States’ soaring debt “should be a very significant concern.”

“I would simply say that I am very worried about the sustainability of the U.S. debt trajectory,” Yellen said. “Our current debt-to-GDP ratio of about 75 percent is not frightening but it’s also not low.”

“It’s the type of thing that should keep people awake at night,” she added.

With the national debate having surpassed the $20 trillion mark, Yellen is certainly correct. National security experts have repeatedly warned the national debt is the single greatest national security threat to our country. [snip]

Yellen said the U.S economy was strong beyond the ballooning national debt, with the country near full employment and the financial system steadied by Dodd-Frank. She said that the Fed would likely raise interest rates soon to bring monetary policy back toward historic levels.

Some of the Fed’s liberal members have expressed concerns about raising rates with inflation still lagging below the Fed’s 2 percent target. Fed leaders, including Jerome Powell, Trump’s nominee for Fed chair, say they’re not sure why prices have increased a lower rate than ideal.

But Yellen, who’s favored a slow increase in rates, said rate hikes are essential to avoid creating a “boom-bust” economy. (The Hill)

Yellen has said she will retire when President Trump’s nominee, Jerome Powell, is confirmed.

Isn’t it strange she never said anything like this when Obama was in office. She screwed the interest rates into the ground, causing many seniors to suffer with no growth in their retirement plans, Social Security payments and bank savings. After which she turned around saying that inflation was low by changing the market basket items to keep the COLA raises nonexistent all the while food, clothing, gas and utilities shot up in cost.

Now she’s worried that the bubble will burst with the debt soaring and the rise in interest rates taking a huge bite out of government cash. The wonders of fiat money will never cease.

Stilton’s Place

Day by Day

Collectivist Banking

Just when you think your money is safe…

Banking – This ain’t no foolin’ around…from Rico

Once upon a time, you took your money to a bank for safekeeping and the bank paid you interest on the deposit of your money in their bank.- The bank was accountable to you for your money.
Not any more.

We have gone from ZIRP (zero interest rate policy) where no interest was paid to depositors, to NIRP (negative interest rate policy) where depositors pay the bank for safekeeping their money.

But it has gotten even ‘better’ than that.

The laws have been changed once again, and when you deposit your money in a bank, it ceases to be your money and it belongs to the bank at the point of deposit.
– Depositors are now unsecured creditors to the bank that owns their depositor’s money at the point of deposit. Yes, you read that right…my regulatory sleight of hand. By depositing your money into a bank, your money becomes the bank’s money.

If the bank screws up, displays bad judgement, or conducts sloppy business and has a problem and/or fails, guess what? Aaaand it’s gone. [think: Cyprus].
– Unsecured creditors get paid back last for pennies on the pound…if they get paid back at all.

Banking today.
– You can go ‘broke’ by running out of money [read: Argentina], or you can have plenty of money that’s worthless [read: Venezuela, Zimbabwe] and be ‘broke.’ Pick one.

To badly paraphrase the lyrics of the Talking Heads:
“This ain’t no party, this ain’t no disco…this ain’t no foolin’ around.”

Idiot’s Corner

Oh! How terrible this is.

The horrible effects of

oppression suffered by

Colin Kaepernick.

It is no wonder GQ decided to honor him as CITIZEN DUDE of the Year to make up for all his adversity.

Imagine having to grow up with all the amenities such as good schooling nice clothes and housing with your own room. Clean air not filled with bullets from some hoodie driveby. Yup, dis boy was oppressed.

And understand where he’s coming from now, this is the oppression that this person of minor talents, ex-NFL quarterback Colin Kaepernick is forced to endure. Could you live in a hovel such as this with hot and cold running maids, not enough palm trees and only able to drive ONE car at a time!

Why that looks like some cheap gate bought at Home Depot. How low can one get.
A rather large carbon footprint for such a caring Social Justice Warrior

It’s hard to chastise someone’s behavior…unless you have “walked a mile” in one pair of their 400+ pairs of shoes!

Makes me want to run right over and kick the snot out of him while he’s oppressed.