Janet Yellen is Filthy Rich, Ben Bernanke is Totally Broke
Well, no, that's not right. Adjust Yellen's net worth from San Francisco dollars to America dollars and you can knock off a few mil, making her a notch down from filthy. The funny part is that her confirmation as Fed Vice Chair would leave Ben Bernanke as the only non-millionaire at the Board. Poor pathetic bastard.
Janet Yellen, nominated by President Barack Obama to be the central bank’s vice chairman, and Peter Diamond and Sarah Bloom Raskin, the picks for two other governor vacancies, each have combined assets of at least $1 million with their spouses, according to financial disclosures with the Office of Government Ethics. The trio awaits Senate confirmation.
That would leave Chairman Ben S. Bernanke as the sole member of the Board of Governors who’s not definitely a millionaire. Bernanke and his family had $852,000 to $1.9 million in financial assets in 2008. Yellen would replace retiring Vice Chairman Don Kohn, whose last disclosure showed assets ranging from $574,000 to $1.29 million.
Yellen, 63, the president of the San Francisco Fed since 2004 and a former economic adviser to President Bill Clinton, reported assets ranging from $3.9 million to $8.5 million for herself and husband George Akerlof, a Nobel Prize-winning economist at the University of California at Berkeley.
Their largest assets include three jointly held Vanguard mutual funds and a Fidelity investment-grade bond fund in Akerlof’s retirement plan, each valued at $500,001 to $1 million. Other holdings include $50,001 to $100,000 in shares of ConocoPhillips, the third-biggest U.S. energy company, and a stamp collection valued at $15,001 to $50,000, according to the filing.
I love the idea of a ginormous Yellen stamp collection, I'm not quite sure why.
Anyway, I went looking for data that would somehow prove the dollar has been beaten senseless since Janet took charge of the SF Fed but I didn't find that and frankly don't need to tell you how she feels about things like 4% inflation targets and inflating our way out of disaster. I did find, however, interesting data from Gary North via Lew Rockwell dating back to 2004, the year Janet became president of the SF Fed. Check out the post for the decline in "money" North is referring to at the time:
What is going on? If the monetary base is stable, at least peak to peak, but MZM and M2 are falling, what is causing the disconnect between FED monetary policy and the market’s use of monetary reserves?
One answer is the rise in the supply of currency, i.e., pieces of paper with dead politicians’ pictures on them. There was a steady upward move until late July. Then the rate of increase itself increased.
When currency increases, the ability of the banking system to increase the number of loans decreases. When a depositor goes to his bank and withdraws currency, the bank can no longer use his money to make loans. When he pulls out currency and refuses to deposit it in another bank, the banking system cannot make new loans. The fractional reserve money-expansion process reverses, imploding the money supply by multiples of the face value of the currency withdrawn. The banks must call in old loans. When the currency supply rises faster than the increase of the monetary base, banks cannot increase the money they lend by the same percentage increase as the monetary base.
Since August, the monetary base has stayed almost constant. The currency component of the money supply has increased. So far, this tells us that the non-currency components of the money supply must have fallen. So, I went looking for other statistics that would verify what the logic of money tells us. I did not have to go far. This chart tells us: the public is pulling currency out of the banking system by cashing in (i.e., cashing out) its small time deposits.
A pre-emptive and possibly entirely unintentional bank run? OMG it's like they knew.