Yellen Could Be Forced to Resign

Yellen Could Be Force To Take The Blame For Bad Policy

I share the disgust and anger many Americans feel hearing confirmed that Federal Reserve regulators were in bed with the enemy or at best asleep at the wheel. While pondering the ruckus being made over revelations and tapes that Fed regulators were too darn cozy with Goldman Sachs I found myself wondering if Janet Yellen might be forced to resign. I concede it may be rather early to start asking this but if a full scale scandal does develop over these revelations she has a problem. Many Americans are full of angst over the growth in inequality during the last several years spurred on by Fed policies.

Of all the elements within government and what Americans consider the establishment it would seem the Federal Reserve is one of the most mistrusted and often misunderstood. The Fed  has few friends and little in the way of a political base. If Americans become riled enough to demand change or that someone resign, the Federal Reserve chairman would be an easy target. The bonus being Yellen would not have a great number of supporters step up in her defense and she could be blamed for many of our economic ills caused as a direct result of policies the Fed controls. The politics of such a blame game will not garner a ground swell of support when a scapegoat is needed.

The Federal Reserve has been complicit and even aided the banks and institutions that caused the great economic collapse in 2008. Even those who have supported what I consider the misdirected policies of QE that has transferred so much wealth to a small few wealthy individuals and the group of banks deemed "too-big-to-fail" would most likely remain mute. Many people might argue this is not her fault because this appears to have gone on for a long time, but even if it has it must be noted that while Ben Bernanke was in charge Janet Yellen was at his side and now the responsibility falls squarely on her shoulders.

Other targets exist but Yellen is an easy one to hit. Our legal system has been ineffective in recent years to hold bankers and financial institutions responsible for the many woes they have put upon the country. I would think Americans would find it much harder to replace all the members of the Senate and House that make up our "do nothing Congress." The same could be said about removing a sitting President elected and supported by roughly half the people, but calling for Yellens resignation would be a cake walk in comparison.

To an angry and unhappy populace getting ten thousand or more protesters to rally in front of the Eccles Building in Washington D.C. where the Federal Reserve is housed should not be difficult. A tent city like the one formed in 2011 by the 99% movement in New York and several other cities is not hard to envision if disenfranchised Americans dig in their heels and camp out demanding the chairman be replaced. Bottom-line if the masses are looking for someone to throw under the bus and send a signal to Washington that they are growing tired of their daily fare she may be our girl.



Footnote; This post dovetails with many of my recent writings, as always other related articles may be found in my blog archive. Thanks for reading, your comments are encouraged. Below is another article giving an early job critique of Yellen that may seem a little harsh or personal, but this is how I call it. Remember Yellen is playing with our money in a unforgiving arena.
http://brucewilds.blogspot.com/2014/05/yellens-job-critique.html

Footnote#2  If you want to get really angry view the following PBS Newshour clip at the link below. The story from Sept. 26th 2014 delves into how Goldman Sachs makes its money and just how the Fed has in many ways aided Goldman in exploiting the American public.
http://www.pbs.org/newshour/making-sense/ray-rice-video-last-week-today-ear-opening-audio-inside-fed/