If You Are Not Worried, You Should Be

The gathering storm of economists and lawyers that are going to help the banking cartel get even more control over you by controlling your money is getting larger and darker.  Yet, still no plan on Fannie, Freddie, and FHA.

Slate of Nominees Is Clue to Obama’s Plans for Fed

WASHINGTON — In naming two economists and a lawyer to serve as governors of the Federal Reserve, President Obama and his top economic advisers are preparing the central bank for a new emphasis on the supervision of financial institutions.

The financial crisis that led the Fed to hurl money at the economy and prop up the housing market also exposed a past inattention to regulation. The backgrounds and expertise of the nominees, announced on Thursday, suggest the Obama administration is trying to address that shortcoming.

Only one of the three, Janet L. Yellen, specializes in the setting of interest rates and the supply of credit, the Fed’s traditional bailiwick.

The other economist, Peter A. Diamond, is an authority on Social Security and pensions who was a graduate school mentor of Ben S. Bernanke, the Fed’s chairman, at the Massachusetts Institute of Technology.

The lawyer, Sarah Bloom Raskin, Maryland’s commissioner of financial regulation, is an ally of consumer advocacy groups, which believe that the Fed’s neglect abetted the subprime lending crisis that metastasized into the most damaging downturn since the Depression.

Janet L. Yellen

Photo of Janet L. Yellen

President
Federal Reserve Bank of San Francisco

Janet L. Yellen took office on June 14, 2004, as president and chief executive officer of the Twelfth District Federal Reserve Bank, at San Francisco.

Dr. Yellen is professor emeritus at the University of California at Berkeley where she was the Eugene E. and Catherine M. Trefethen Professor of Business and Professor of Economics and has been a faculty member since 1980.

Dr. Yellen earlier took leave from Berkeley for five years starting August 1994 when she served as a member of the Board of Governors of the Federal Reserve System through February 1997, and then left the Fed to become chair of the Council of Economic Advisers through August 1999. She also chaired the Economic Policy Committee of the Organization for Economic Cooperation and Development from 1997 to 1999.

Dr. Yellen is a member of both the Council on Foreign Relations and the American Academy of Arts and Sciences and a research associate of the National Bureau of Economic Research. She also serves on the board of directors of the Pacific Council on International Policy, and in the recent past, she served as president of the Western Economic Association, vice president of the American Economic Association and was a Fellow of the Yale Corporation.

Dr. Yellen graduated summa cum laude from Brown University with a degree in economics in 1967, and received her Ph.D. in Economics from Yale University in 1971. She received the Wilbur Cross Medal from Yale in 1997, an honorary doctor of laws degree from Brown in 1998, and an honorary doctor of humane letters from Bard College in 2000.

An assistant professor at Harvard University from 1971 to 1976, Dr. Yellen served as an economist with the Federal Reserve’s Board of Governors in 1977 and 1978, and on the faculty of the London School of Economics and Political Science from 1978 to 1980.

Dr. Yellen has written on a wide variety of macroeconomic issues, while specializing in the causes, mechanisms and implications of unemployment.

Janet Yellen:

AKA Janet Louise Yellen

Born: 13-Aug1946
Birthplace: Brooklyn, NY

Gender: Female
Race or Ethnicity: White
Sexual orientation: Straight
Occupation: Economist
Party Affiliation: Democratic

Nationality: United States
Executive summary: President and CEO, San Francisco Fed

Husband: George A. Akerlof (2001 Nobel Prize in Economics)
Son: Robert

University: BA Economics, Brown University (1967)
University: PhD Economics, Yale University (1971)
Professor: Harvard University (1971-76)
Scholar: Research Fellow, Massachusetts Institute of Technology (1974)
Professor: London School of Economics (1978-80)
Professor: University of California at Berkeley (1980-)

Federal Reserve Bank of San Francisco President and CEO (2004-)
Organisation for Economic Cooperation and Development Economic Policy Committee (1997-99)
US Council of Economic Advisers (1997-99)
US Federal Reserve Governor (1994-97)
American Academy of Arts and Sciences 2001
American Economic Association Vice President
Brookings Institution Advisory Board, Panel on Economic Activity (1999)
European Centre For International Political Economy Advisory Board (1999-)
US Congressional Budget Office Advisor
Council on Foreign Relations (1976-81)
John Kerry for President
National Academy of Sciences Panel on Ensuring the Best Presidential Science and Technology Appointments (2000)
National Association for Business Economics Fellow
National Bureau of Economic Research Research Associate
Pacific Council on International Policy Board of Directors
Western Economic Association
Phi Beta Kappa Society (1965)
Guggenheim Fellowship (1986-87)

Who is Janet Yellen?

Janet Yellen, president of the Federal Reserve Bank of San Francisco, is expected to be nominated by President Barack Obama as vice chair of the Federal Reserve Board. Ms. Yellen, 63 years old, has served as a Fed policy maker for almost a decade between her stints in Washington and San Francisco.
Dan Francisco Fed President Janet Yellen (Reuters)

Policy stance:
Ms. Yellen has been a reliable supporter of Fed Chairman Ben Bernanke’s policies. She is frequently cited by economists as one of the central bank’s most dovish policymakers, generally backing policies that would boost growth and reduce high unemployment. She has long been a counterweight to the Fed’s more hawkish regional bank presidents who tend to be more concerned about rising inflation. (The Fed’s dual mandate from Congress is to promote maximum sustainable employment and price stability.)

Voting record:
In her time as a Fed policy maker, Ms. Yellen has never cast a dissenting vote on policy — in either raising interest rates or lowering them. She has voted 36 times as a member of the Federal Open Market Committee, always with the majority, according to a tally by Wrightson-ICAP. Of the 12 current regional bank presidents, five have dissented at least once. Of current FOMC officials, only three have cast more votes on interest-rate policy in their careers: Vice Chairman Donald Kohn (63 votes), Kansas City Fed President Thomas Hoenig (60 votes) and Chairman Bernanke (56 votes), according to the Wrightson tally.

Obama to Nominate Three to Fed Board

Picking Mr. Diamond and Ms. Raskin—neither of whom have much experience in monetary policy—”is a symptom of broadening the Fed’s responsibilities,” said Alice Rivlin, a former Fed vice chair. “The Fed’s got a lot on its plate at the moment.” (emphasis mine)

Peter A. Diamond:
Peter Diamond, turns 70 on Thursday
Professor, Massachusetts Institute of Technology
Prior positions: Professor, University of California, Berkeley
Education: MIT, Ph.D. (Economics); Yale , B.A. (Mathematics)
Academic Interests: Social Security, pensions, taxation

Sarah Bloom Raskin:
Sarah Bloom Raskin, 49
Maryland Commissioner of Financial Regulation (Aug 2007 to present)
Prior positions: Managing Director, Promontory Financial Group; General Counsel, Worldwide Retail Exchange; General Counsel, Columbia Energy Services Corp; Counsel, Senate Banking Committee; Staff, Federal Reserve Bank of New York; Staff, Congress’s Joint Economic Committee
Education: Harvard Law School, J.D.; Amherst , B.A. (Economics)

Does anyone still think we need a central bank that is really a private banking cartel draining us of every last penny through interest payments? What happens when these parasites start raising interest rates, as they must?

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