As Janet Yellen slogs through her Senate hearing on her way to being confirmed as Federal Reserve chair, Peter Schiff of Euro Pacific Capital has a suggestion for how the proceedings might be livened up from his admittedly conservative perspective.
"I would like to see the truth come out of these confirmation hearings to discuss how completely clueless Janet Yellen was during the housing bubble," Schiff suggests by way of warming to the topic. Not only did Yellen fail to see the crash coming, but she was dismissive of the dangers related to our over-leveraged housing economy even as Schiff himself was doing his best to alert the public. "She was wrong about everything in the past and I think she will continue to be wrong once she's chairwoman."
Related: Yellen Will Take Fed in 'Dangerous Direction'
Schiff says it is Yellen's faith in the fed's ability to cure what ails the economy that will prove to be America's undoing. Having learned nothing from the crisis Yellen will continue to print money until the long-anticipated currency crisis arrives and "brings an end to the madness," he argues.
In a sense, the best case scenario is one involving a total meltdown as Schiff sees it. For six years the Fed has enabled an almost total lack of fiscal discipline. Easy money has forestalled a total collapse without ever allowing any corrective economic action. The economy has been in a medically induced coma since 2009. If Yellen is truly as inept as Schiff believes, maybe it's not too much to hope that hyper-easing will be disastrous enough to get America to snap out of it.
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- Peter Schiff
- Janet Yellen