President Obama will announce his appointment to replace Ben Bernanke as the Federal Reserve Chairman (soon to be Federal Reserve Chairwoman) when his term ends in January. It is being widely reported around Washington that his predictable choice will be Janet Yellen.
Janet Yellen is an obvious choice. She is already a Vice Chairwoman on the Board of Governors of the Federal Reserve System, which means she will not change much in January except she’ll be running the show instead of just taking part in it. It is expected that she will have no problem gaining confirmation from the Senate, and in January, she will become the most powerful person in the world.
Wait a minute, you say. What?!? The most powerful person in the world?
That’s right. Ben Bernanke is currently the most powerful person in the world, and in January, he’ll be handing over the reins to Janet, who will be the first woman to claim the prestigious and unbelievably influential position. This position has unparalleled power in the United States over the Federal Reserve system, and the repercussions of its actions literally dictate the economic picture to the far reaches of the globe.
Bernanke presided over some troubled times. Depending on who you ask, his moves were either genius or idiotic at best. In any case, the raising and lowering of the interest rates of the Federal Reserve itself is what the Fed Chairman is most known for. Basically, the Chairman decides arbitrarily what rate the Federal Reserve will charge as interest when loaning money to financial institutions all over the United States. This is the money that banks then loan to businesses and individuals. While the Board of Governors does have discussion into the path, the Chair has the final word. Ben Bernanke literally can change the interest rates solely on his own mood swing if he so desires. And he who controls the money, controls the power, and vice versa. The President appoints the big dog, but after that, has absolutely no power (outside of nominating someone different when the term ends) or recourse. You nominate the person you think is best and you sit back and sleep in the bed you have made.
Janet Yellen has long been a mover and shaker on the economic and political scene. She most recently was the President of the Federal Reserve Bank of San Francisco before becoming a Vicechairwoman of the Federal Reserve Board in 2010 (also appointed by President Obama). She has all the credentials and education one would expect. We won’t bore you with the details that you could find anywhere on the Internet. We will talk about what we can expect from Yellen when she takes over in January.
Yellen is what many in the financial and economic world would refer to as a dove. Doves tend to be more concerned about unemployment than inflation. Hawks put inflation first and things like unemployment further down the list of priorities. For this reason, Yellen is expected to not be very likely to raise the Federal Reserve rates very much. Her demeanor tends to be to encourage business and economic growth by keeping the rates as low as possible. It could also mean that she might be more open to infusing more money into the economy, which can lead to gains in the short-term but inflation in the long-term. Bernanke also employed this strategy at times during his tenure to mixed results.
For conspiracy buffs everywhere, one interesting thing to know about Yellen is that she has gone on the record talking about Bitcoin and other free market online payment mechanisms. She has said that the United States is more than capable of “stifling” such things, but they are definitely keeping an eye on it.
The most recent Bilderberg meeting (which Janet Yellen did not attend, at least not by any guest list we have seen) discussed Bitcoin and the concept of decentralized virtual currencies. Since the Federal Reserve and Bilderberg are all part of a global mechanism to control the world’s currencies, any kind of upstart like Bitcoin has them terrified that they might lose their grip on the power and money of the planet Earth. However, their fears are really more a call to action. They are currently organizing their troops to squash any chance of the world moving toward a free market currency, and Janet Yellen will fall right in line with that movement.