A Few Thoughts on Janet Yellen’s Appointment Hearing

(Last Updated on January 20, 2021)

Opening statement by Yellen

“It will be my core focus if confirmed to focus on reads of America’s workers living in cities and rural areas and to make that we, um, have a competitive economy that offers good jobs and good wages. I really look forward to working with President Elect Biden and his team first to address the critical issues that face the country now. With the pandemic causing such misery to so many small businesses that failed, at risk of failing, and need our help. And the unemployment workers who have been so badly affected by the impact of the pandemic – especially those in the service sector and the workers employed in that sector.

Its been particularly brutal on its impact on minorities and women.

I will be focused from day 1 on providing support to Americas workers, small businesses, putting into effect as quickly and efficiently as I can the relief on the bill that has been passed. Then overtime, um, working for a 2nd package that I think we need to get through these dark times before the vaccination program enables us to go back to life as we knew it.”

Thoughts?

I think we can all agree with how she is framing the above goal for a new secretary of the treasury.

Yes – PLEASE help small businesses, minorities, and lower income families that do drastically need help right now.

But how are these giant Government trillion dollar spending packages going to help when they only continue the same STATUS-QUO of bloat and financial waste that the U.S. congress excels at.

Are we selling our souls for a small cash bonus that won’t pay more than half of what the average American’s monthly household expenses are?

These programs will fund the wealthy elite and major corporations – very little will actually help the individual except for that little $1,400 check in your pocket.

We need help for small businesses with UNDER 100 employees and the self-employed!

Small businesses need a ton of help, but the PPP program was full of fraud and mostly supported businesses that have OVER 100+ employees.. That is not the average “mom and pop” shop down the street or your favorite restaurant owner down the street.

The majority of the PPP loan funding went to corporations that averaged revenue in the millions, not hundreds of thousands..

That is not the majority of small business owners that stabilize and support this economy.

Oh and that PPP program is FULL of fraud.

Steven Mnuchin created one of the largest U.S Government fraud programs in history

We now know that 100’s of millions, possibly even BILLIONS of dollars, have been given to fraudsters and financial criminals through the Paycheck Protection Program under Secretary Mnuchin.

I disagree in how she believes that expanding government programs will help our low income population and trhe growing wealth disparity of this country.

Biden’s “American Rescue Plan” spends less than 25% on Americans directly.

Population of America = roughly 330 million

Stimulus of $1,400 x 330 million = $462 billion

Less than 25% of the BLOATED Government spending bill of 1.9 trillion

How is the additional funding for vaccinations, healthcare, and other supposed assistance actually going to funnel its way down the the people?

It won’t.

Just like the Paycheck Protection Program, these funding bills will primarily benefit lobbying corporations and government programs.

These programs like welfare and medicare have been shown to be extremely wasteful and ineffective in getting help to those most in need.

This is what we are asking for you to fix!

When you look into these spending bills you see the following:

-> At least TWO large $1.5 to 2 trillion dollar spending packages to come in 2021

-> Massive bloat of money pouring into government and large contracted companies

-> The $1,400 additional stimulus is less than 25% of the proposed bill but may “appease” the people.. for a month.

Yellen’s statement regarding SALT deduction capped at $10,000 per year

“I certainly believe in the fair and progressive tax code where wealthy individuals and corporations pay their fair share. Before making a decision about what should be done I think it is critical to study and evaluate what the impact has been on state and local governments to provide critical services and I prose to work with those in the treasury and administration in evaluation what impact that has had on state and local governments, households and small business to study this issue further.”

-> Mentions the need for FURTHER funding to state and local governments BEFORE households and small businesses..

-> Does not directly attack the fact the SALT deduction is considered a handout to the rich elites in this country

This sounds like a career politician who will be serving the wealthy and the needs of the state before households and any small business. Again, providing an actual 10-20% of monetary focus to those who have been hit the hardest and need it the most.

Re-focus America on clean energy, specifically electric cars

Consistently she refers to “Biden’s Plan” and is pretty general on her responses.

But one thing that is a consistent theme is the need for re-building America’s economy toward clean energy. It will be interesting to see how this will roll out.

This will *supposedly* drive a boom in the clean energy industry and provide millions of jobs.

Yet we know the highest % of artificial intelligence and robotic manufacturing comes from clean energy tech companies such as a Tesla or First Solar.

In comparison to other industries – clean energy is a leader in A.I. and robotic manufacturing.

Yellen flops and goes soft on 2017 corporate tax law repeal.

“On the 2017 tax cuts the president has said eventually as part of a larger package that would include significant spending and investment proposals. But not now, the pandemic is really depressing the economy and he would want to repeal parts of the 2017 tax cuts that benefited the highest income Americans and large companies. he wants to reverse the laws incentives to offshore activities and profits. He does not support a complete repeal of the 2017 tax laws. For example a provision of that law had the unfortunate byproduct for companies profiting by moving offshore.

But we would want to stop the global race to the bottom on corporate tax rates.”

Already changing the views on the 2017 tax cuts that Biden was supposed to repeal in full.

Now it looks like eventually, maybe, after COVID, etc etc…

We may repeal some parts. Some?

Her comments on state budgets – money printing will increase brrrrr, brrrrrrrr, brrr

“As you know in 2008 when the economy suffered such a serious downturn state and local governments sought a huge shortfall in revenue and an increased need to spending on safety net type programs while they faced massive deficits. Although congress and the administration passed the American Recovery and Reform Act and spent big at the federal level. There was a huge offset from the total economic point of view that came about because state and local governments have to balance their budgets and were forced to slash their workforces.

A tremendous drag on the economy. And as you mentioned we are seeing layoffs, especially in teachers, firefighters, and police.

I will not allow this as treasurer”

There will be huge fiscal support from the Federal Reserve to state and local governments – especially those Democratic states such as New York and California which have the largest deficits. Both of these states were in terrible shape debt wise before the COVID crisis and are now in even worse shape as they have the tightest restrictions.

She responds kindly and articulate to the low income and minority issues happening in this country, but will she deliver?

Yellen on the $15 minimum wage

“You know President elect Biden has proposed raising the minimum wage to $15 an hour because right now we have millions of American workers who are putting their lives on the line to keep their communities functioning. Sometimes even working multiple jobs is not enough to put food on the table and a roof over their head. They are suffering in countless ways especially during this pandemic and suffering to get by. And raising the minimum wage would help many of those workers.

That’s the reason.

In terms of jobless there’s now a large economic literature on this and much of it suggests raising minimum wages. Researchers often look at what happens when one state raises its minimum wage and a neighboring state leaves it alone. And to see how businesses fare in the two different places with two different treatments. The findings are the job loss is very minimal if anything. I hope that the micro impact on jobs is minimal that some of the research supports.

That’s my reading of the research.

And of course small business are struggling and its critical to help those businesses. I appreciate the PPP package and will increase it in our recently passed bills.

We will do everything we can to get PPP money out to those in need.”

So back to the Paycheck Protection fraud program and wasted spending..

I think we may see the $15 minimum wage pass and I’m sure no one knows exactly how that will affect our economy. But it will DOUBLE the spending for employees and labor in this country. That will be a heavy burden on all American businesses.

Is that good for some low income workers? Hopefully.

Will that hammer and destroy MORE small businesses around the U.S.? Absolutely.

Outside of that, it’ll be small parts of massive bills that will serve the American people. In a few years due to inflation and devaluing of the dollar we may be in a tough economic situation.

Yellen attacks Bitcoin for money laundering and terrorism.

“Senator I think your absolutely right that with the technologies to accomplish this change over time and we need to make sure that our methods for dealing with these matters with terrorist financing change along with changing technology. Cryptocurrencies are a particular concern, I think many are used, at least in the transactions, for mostly for illicit financing. and I think we really need to examine ways in which we can curtail their use and ensure that terrorist money laundering does not occur through those channels.

Clearly Janet has not done her research on the use of Bitcoin vs. the U.S. Dollar for “illicit financing”.

As per recent chain analysis from 2020 – we can see less than 2% of cryptocurrency volume is being used for potential criminal activity.

Most common types of illicit used for crypto?

-> Individuals purchasing drugs anonymously

-> Ransomware/malware type hacking attempts that steal data and sell it back for a ransom

This will be a battle for control and they are scared of Bitcoin’s decentralization to be used as a monetary tool for individuals and companies within the United States to take some control of their wealth independently. Keeping their wealth safe from giant government debts and insane spending programs backed by wild amounts of currency printing and devaluation.

It is nice to be solely responsible for at least some of your wealth.

Is Yellen going to be another corporate cronyism democrat that says one thing to appeal the people but dedicates the majority of funding and support to serving the wealthy elite in this country?

She is a career politician who already has a lifetime of working inside the United States legacy banking system and appeasing lobbyists.

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