On Monday, Janet Yellen was confirmed by the United States Senate to become the next chair of the Federal Reserve System. Yellen, 67, will succeed Ben Bernanke when his second term expires on Jan. 31. The Keynesian will also become the first woman to head one of the most powerful organizations in the world.
Although economists and the mainstream media appear to be satisfied with President Obama’s pick – Time magazine recently drooled over her in a piece Monday – Republicans and libertarians are concerned over Yellen’s next four years because it is likely that she will print more money out of thin air. One of Yellen’s critics is former Texas Republican Congressman and three-time presidential candidate Ron Paul.
Speaking in an interview with the Daily Caller late Monday, Dr. Paul immediately stated that Yellen is “worse than average.” However, like most adherents to the Austrian School of Economics, it’s not so much the leading figures of the central bank but rather the monetary system itself.
“I put a lot of blame on the problems that we have, the booms and the busts and the unemployment and this recession that we can’t get out of –– it’s all due to the monetary system,” explained Paul. “And the head of the Federal Reserve just is the symbolic head of a deeply flawed system that should’ve never been created. I think they’re living a pipe dream and it’s going to soon be very apparent what terrible shape our economy is in.”
The author of “End the Fed” and “Liberty Defined” believes Yellen will hasten the economic collapse because there is not more she can do except to print more money.
“They’ve taken the interest rates down to zero, the only tool they have is printing money, creating money out of thin air, so there’s nothing left. And she believes in even doing more of it,” added Paul.
Despite the claims that Yellen will work for the “everyday economy,” the quantitative easing and low interest rate policies have only propped up Wall Street, the housing market and the federal government. With the creation of new money, the lower- and middle-class will be left with the breadcrumbs, while the elite will be the ones benefitting from the printing press running 24/7.