Posted originally on Nov 26, 2024 by Martin Armstrong
Janet Yellen will finally step down from her role as Treasury Secretary in January, leaving a massive mess for her replacement, Scott Bessent. The budget deficit surpassed $36 trillion under the Biden-Harris Administration, with Yellen touting that the US had an endless supply of funds to spend and imaginary success of Bidenomics.
As head of the Federal Reserve under Obama, Yellen was an outspoken advocate for QE. She worked closely with Bernanke and Greenspan, but is actually considered the main architect of the Fed’s now dead quantitative easing program that began in December of 2008. “Potentially anything – including negative interest rates – would be on the table. But we would have to study carefully how they would work here in the U.S. context,” Yellen argued back in 2015. This academic and longtime Fed insider spent her career pandering to the White House.
Perhaps part of her legacy as America’s CFO under Biden-Harris would be her insistence that inflation was “transitory.” Yellen called the US debt downgrade “arbitrary” when Fitch Ratings downgraded US long-term debt late from AAA to AA+.
She never spoke as an authority on economics, but rather, she spoke as if she were a puppet of the WEF implanted in government to spread economic-related propaganda. Yellen is akin to the Karine Jean-Pierre of America’s financial system insofar as her job is to openly lie to the public and convince them that their reality is not as it seems.
Treasury Secretary Janet Yellen is proof that the establishment is completely clueless when it comes to the lives of the average citizen. “People are better off than they were pre-pandemic,” Yellen touted on national news last week. Perhaps she meant to say “politicians” rather than people, and no, one cannot point at rising US indexes and claim that is sufficient evidence that the overall economy is sound.
Despite millions of Americans struggling financially amid inflation in the post-pandemic landscape, Yellen had the audacity to claim that most Americans are happy with their financial situation despite every bit of data indicating otherwise. “So, they seem to perceive the economy as a whole as doing less well than they are personally. But most Americans feel good about their own economic situation.”
Yellen insisted that inflation was under control. Completely out of touch, Yellen even denied the prevalence of food inflation. “I think largely it reflects cost increases, including labor cost increases that grocery firms have experienced, although there may be some increases in margins,” Yellen, who has a net worth of $20 million, stated before advocating centralized agriculture.
Yet, she promoted every major spending package Biden signed off on. Yellen was the first to admit the true reason behind the Inflation Reduction Act, the largest spending package in US history, was to propel the climate change agenda. “The Inflation Reduction Act is, at its core, about turning the climate crisis into an economic opportunity,” Yellen admitted.
Biden later admitted that the bill was never intended to reduce inflation. “We should have named it what it was!” Biden said at an event in Westby, Wisconsin, where he unsuccessfully attempted to tout the success of Bidenomics. The president referred to the Inflation Reduction Act as “the most significant CLIMATE CHANGE LAW ever,” adding, “by the way, it is a $369 billion bill, it’s called the–we we we should’ve named it what it was.”
Janet Yellen declared that it will take $3 TRILLION ANNUALLY into 2050 for nations to meet their climate objectives. They deem climate change “the single-greatest economic opportunity of the 21st century,” but logical minds will see it as the biggest economic obligation. “Neglecting to address climate change and the loss of nature and biodiversity is not just bad environmental policy. It is bad economic policy,” Yellen told the G20. Not one member objected or questioned her proposal.
The most inflationary driver is war, but Yellen insisted that America could fund not one but two proxy wars. “America can certainly afford to stand with Israel and to support Israel’s military needs, and we also can and must support Ukraine in its struggle against Russia. The American economy is doing extremely well,” Yellen said. Despite the endless blank checks, Janet Yellen insisted that America has not done enough for Ukraine.
Unbothered by the growing deficit, Yellen’s plan all along was to mobilize the Internal Revenue Service to hunt down American citizens. She was an advocate for tracking all transactions above $600 to ensure not a penny went unaccounted for. Yellen praised the Biden-Harris regime for “giving the Internal Revenue Service the resources that they need to close what is estimated over the next decade to be a $7 trillion tax gap.” The IRS could confiscate all of our wealth, but it would still not be enough to pay off the growing deficit and the costs of financing that deficit.
Many have criticized how she chose to finance the deficit. An estimated 30% of US debt is held in short-term bonds, doubling the amount held in the short-term since 2023. This debt must be refinanced at likely higher rates compared to if she locked 10- and 30-year bonds at historically low rates. Yet, that would have shown the public that Bidenomics was not working, as consumers would have felt the blow firsthand. At the same time, we have seen China offload massive amounts of US debt under Biden. Yellen begs China to continue purchasing and then turns around and agrees with the neocons that we must defend Taiwan – oh, but please continue purchasing the debt of your enemy.
Janet Yellen has left an utter mess for the next US Treasury secretary. One must wonder if this was a calculated move to paint Bidenomics in a positive light before he and his cabinet fled for the hills. Our models indicated that 2024 is the peak in foreign holdings of US debt, nearly 24% of the total debt. So, if you are paying $1 trillion in interest, about $230 billion is going outside the country, and there is no domestic stimulation factor whatsoever. Thanks to the failure of monetary and fiscal policies, notably stemming before Bidenomics, Socrates has stated that the national debt will surpass $100 trillion by 2027/2029. Not to worry as our current form of government is indeed “arbitrary” and “transitory.”
Centinel2012 