Marc Faber has doubts on Janet Yellen

I read from Reuters that Fed chair Janet Yellen had opined: “More research is needed to understand what policies allow people to move up the economic ladder and what holds them back.” More research, she said, may provide evidence of what allows people to get ahead, and to predict how individual circumstances impact income inequality.

Specifically, Ms. Yellen said: “It would also be beneficial to understand whether any policies may hold people back or discourage upward mobility” and “Research could help us better understand how much mobility at the individual level matters for overall growth in productivity and economic output.”

As far as Yellen’s research on wealth and income inequality is concerned, my readers can rest assured that it will be published by some Fed-friendly (read “recipients of Fed consulting fees”) academics, who will conclude that monetary policies haven’t contributed to rising wealth inequality.

I have written about wealth inequality sufficiently in the past and won’t repeat myself here, except to reiterate once again that when asset bubbles burst they impoverish the majority while benefiting a few market participants. 

Furthermore, empirical evidence shows that periods of high monetary inflation (money printing) enrich a tiny minority and not the majority.