Federal Reserve Chair Janet Yellen’s final speech to Congress (Joint Economic Commitee) reminded me of the scene in the movie Death Becomes Her where Meryl Streep swallows a magic potion and Isabella Rosselini then says “Now a warning.”
Yes, Yellen warned Congress that they should monitor the US debt load, now at $20.6 trillion, up from $9.5 trillion in Q2 2008. She also called on Congress to adopt policies that will promote investment, education and infrastructure spending.
Yes, US public debt outstanding has more than doubled since Team Bernanke/Yellen began quantitative easing (QE) back in September 2008.
Of course, The Fed buying US Treasuries helped fuel the enormous growth in US debt leaving The Federal Reserve as the largest owner (by far) of US Treasury debt.
Why didn’t Yellen mention declining M2 Money Velocity (GDP/M2 Money Stock)?
And why didn’t Yellen mention that The Fed killed-off Treasury volatility?
Notice that Yellen issued this warning as she is being replaced as Fed Chair and a new President (Trump).
At least Yellen didn’t say “Bottom’s up!”
This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. 
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