The missing question in Yellen’s Congress discussion
What is next for national economic policy?
According to Breitbart, Federal Reserve Chair Janet Yellen achieved the primary goal of any new Fed chief and avoided any obvious land mines. But what was lacking in the dialogue, both from Yellen and the media, was a serious discussion of what’s next for national economic policy.
First, to understand what the Fed has been doing for the past five years and more, we need to go back to the Roaring Twenties and before. For the great Money Trusts had been accumulating economic power and political influence behind an opaque screen of secrecy. There was also massive financial leverage, hidden inside the monopolies of trusts and pyramids formed during and after the Gilded Age.
The leverage and financial fraud that accumulated from the late 1800s through until the Great Crash in 1929 was massive and largely hidden. The financial crisis of 1907, for example, when the House of Morgan rescued the US financial system, was just a hint of the financial collapse that was to come. But the financial leverage and fraud continued to build in the financial system under a veil of legal secrecy.