Tuesday, February 11, 2014

Chariman Yellens first Humphrey Hawkins Testimony: A few good Yellen



Today was Chairman Yellens first HH testimony in front of Congress. In the interest of time I have decided to summarize today's testimony as the courtroom drama it was:

YELLEN: I'll answer the question. You want a Fed audit?
CONGRESSMAN: I think I'm entitled!
YELLEN: You want an audit?!
CONGRESSMAN: I want the truth!

YELLEN: You can't handle the truth! Son, we live in a world that has a dual mandate, and when the Taylor Rule says interest rates ought to be negative 30%, that mandate has to be executed with unconventional monetary policy. Who's gonna do it? You? You, Congressperson Waters? I have a greater responsibility than you can possibly fathom. You weep over Emerging Markets and the end of Quantitative Easing and you curse the TARP. You have that luxury. You have the luxury of not knowing what I know, that TARP, while tragic, probably saved the banking system. And my existence, while grotesque and incomprehensible to you, DEFINITELY moderates the business cycle!

You don't want the truth, because deep down in places you don't talk about in Congressional Caucus, you want extraordinary monetary policy. You NEED extraordinary monetary policy, because your fiscal policy is a fiasco. We use words like "Price Stability", "Full Employment", "Fiscal Responsiblity." We use these words as the backbone of a life spent protecting something. You use them as a punchline!!

I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the blanket of the global reserve currency that I provide, and then questions the manner in which I provide it! I would rather you just said "thank you", and went on your way. Otherwise, I suggest you write up some legislation, and lower the corporate and capital gains tax rates.

Either way, I don't give a damn what you think you are entitled to!

CONGRESSMAN: Did you order the Taper?
YELLEN: I did the job that—-
CONGRESSMAN: Did you order the Taper?!!
YELLEN: YOU'RE GODDAMN RIGHT I DID!!