Yellen's Alarming Admission: She says "Fraud Threatens Banking Stability"
Yellen Blames Bankers committing massive Fraud, Not Her Policies or Federal Reserve Policies.
The Unraveling of America's Financial Fabric
In a shocking display of misdirection, U.S. Treasury Secretary Janet Yellen recently declared that fraud is becoming a "huge problem" in the banking system.
This statement, coming from the very architect of our nation's financial policies, is not just alarming—it's a brazen attempt to deflect blame from the real culprits: the misguided monetary policies that have brought our economy to the brink of collapse.
Let's not mince words: Yellen's statement is a smokescreen, a desperate attempt to create a scapegoat for the impending financial disaster that has been years in the making. As Treasury Secretary, Yellen has been at the helm of policies that have systematically undermined the stability of our banking system. Her fingerprints are all over the very instruments that have inflated this economic bubble to dangerous proportions.
Consider the Federal Reserve's quantitative easing (QE) program, a financial sleight of hand that has pumped trillions of dollars into the economy since the 2008 crisis. This monetary magic trick has artificially inflated asset prices, encouraged reckless lending, and created a false sense of economic prosperity
The Fed's balance sheet has ballooned to an unprecedented $8.9 trillion, a ticking time bomb of financial instability.
“But QE is just the tip of the iceberg. The decision to set zero reserve requirements for fractional reserve banking is nothing short of financial madness. This policy has essentially given banks a blank check to create money out of thin air, with no safeguards to protect depositors or the broader economy. It's a recipe for disaster that makes the 2008 crisis look like a minor hiccup.” - Jon Forrest Little
And let's not forget the Fed's manipulation of interest rates, keeping them artificially low for years. This has created a debt-fueled economy, encouraging risky borrowing and punishing savers. It's a policy that has widened the wealth gap and set the stage for a financial reckoning of epic proportions.
The consequences of these reckless policies are now coming home to roost. Banks are sitting on a mountain of unrealized losses, with estimates suggesting exposure seven times greater than during the Great Financial Crisis.
The commercial real estate market is teetering on the edge of collapse, with properties selling at discounts of up to 65% due to changing work habits and remote work trends.
Yet, instead of acknowledging the role of these misguided policies, Yellen has the audacity to point the finger at fraud. This is not just a failure of leadership; it's a betrayal of the American people. By focusing on fraud, Yellen is attempting to create a narrative that absolves policymakers of responsibility for the coming economic storm.
The truth is, the fraud that Yellen should be concerned about is the fraud perpetrated on the American public by those entrusted with safeguarding our financial system. The real crime is the systematic dismantling of financial safeguards, the reckless expansion of the money supply, and the creation of an economy built on the quicksand of debt and speculation.
As we stand on the precipice of another financial crisis, it's clear that the emperor has no clothes. Yellen's statement is not just a warning—it's an admission of failure. It's time for a complete overhaul of our financial system, one that prioritizes stability over short-term gains, and the interests of the many over the profits of the few.The American people deserve better than this shell game of blame and misdirection. We need leaders who will take responsibility for their actions and implement policies that create real, sustainable economic growth. Until then, we're all just pawns in a rigged game, waiting for the house of cards to come crashing down.
PS - it has been approximately two years and ten months since Janet Yellen made her initial statement about inflation being transitory.
PSS - that statement hasn’t aged well has it?
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While we agree with Yellen about Fraud within banking the US dept of Treasury and Federal Reserve are more culpable because they set regulations and policy.
US Banks Zero reserve requirement
US Banks and Their massive exposure to derivatives
US Top banks shorting an entire year of silver mining production
Ron Paul sums it up pretty nicely.
