American Principles In Action - Tell Your Senators No on Yellen

American Principles Project

The vote on the Fed Reserve Chair is crucial to the future of America. We encourage you to CONTACT your Senators and encourage them to vote “NO” on Janet Yellen’s nomination as the Federal Reserve Chair.
Below are two articles that I thought would be of interest to you. Please take a few moments to read the below articles and CONTACT your Senators and tell them to vote “NO” on Janet Yellen as Fed Chair.
Rich Danker
Economics Director
American Principles in Action / No On Yellen Campaign
Janet Yellen’s ‘Trickle Down’ Economics
By Jeffrey Bell
The Weekly Standard – November 19th, 2013
The nomination of Janet Yellen to chair the Federal ­Reserve has come down to this: a referendum on quantitative easing and zero interest rates. The money-printing program that Ben Bernanke started five years ago this month remains Yellen’s answer for how the economy will get back on solid ground. Yet in her appearance at Thursday’s Senate Banking hearing, a bipartisan group of senators expressed dismay that Fed money printing has widened the wealth gap while fueling potential asset bubbles.
Whatever air was left in the tank of quantitative easing was let out early last week when former Fed official Andrew Huszar, the director of its $1.25 trillion mortgage-backed security purchase program, wrote a devastating Wall Street Journal op-ed, “Confessions of a Quantitative Easer,” in which he declared the program “the greatest backdoor Wall Street bailout of all time.” Huszar disclosed that he and other Fed managers expressed their concerns about this outcome early on, but they were ignored as the Federal Open Market Committee moved from a macroeconomic to a more special interest rationale. “Now the only obsession seemed to be with the newest survey of financial-market expectations or the latest in-person feedback from Wall Street’s leading bankers and hedge-fund managers,” he wrote.
Click here to read the full article.
Yellen’s easy money spells trouble: Opposing view
By Sean Fieler
USA Today – November 18th, 2013
Opposing Janet Yellen's nomination as chair of the Federal Reserve Board of Governors is both good policy and good politics for Senate Republicans.
In her remarks Thursday before the Senate Banking Committee, Yellen made it clear that she will keep interest rates low and the Fed's balance sheet growing in an effort to boost employment. What remains less clear is whether this policy will actually work. After all, labor participation rates remain near 20-year lows despite the Fed's nearly $4 trillion balance sheet.
While the Fed's easy-money policies have not produced many jobs, they have produced a persistent, low rate of inflation that is choking the American middle class. Since the asset purchases began five years ago, the average American family has experienced rising prices and stagnant wages. The resulting decline in living standards explains why voters ranked rising prices nearly tied with unemployment as their top economic concern during the 2012 election.
Click here to read the full article.