Stasi was the name of the East German internal security police during the worst of the communist dictatorship in the Cold War German Democratic Republic. Stasi was an acronym for the National Security Agency. Many of its activities included illegal arrests, cross-examinations, and imprisonment of political prisoners.
Stasi was also famous for running a ubiquitous surveillance network where neighbors spy on neighbors and colleagues spy on each other. There were rewards for reporting dissidents to the police and severe punishment for those who did not follow the party’s policies.
All of this was impressively depicted in the 2006 German film Life of others (((Das Leben der Anderen) A Stasi officer is spying on a playwright suspected of having a dissident view.
If this kind of activity seems to be far away long ago, think again.
Stasi’s policy is currently in use in the United States, as explained here. paper.. Oregon is currently under an extreme form of blockade imposed by Governor Kate Brown.
Empirical evidence from more than 30 countries around the world Blockade does not work to slow the spread of COVID.. The countries surveyed have adopted policies ranging from extreme blockades to moderate rules and no blockades. The results showed no difference in case fatality or case fatality based on the blockade policy or its lack.
Moderate measures such as frequent hand washing, social distance, and optional masks can be beneficial. Extreme lockdowns simply destroy small businesses, increase suicide rates, increase substance and alcohol abuse, increase domestic violence, and cause anger, depression, and anxiety. The blockade kills more people they save and does so at the astronomical sacrifice in economic production and mental health.
None of them interfere with the political grandstand
When some citizens refused to follow Governor Brown’s pointless plans, she said she should report to police if her neighbor spies on her neighbor and observes behavior that does not follow her orders. Apart from being a bad public health policy, her orders are probably unconstitutional.
Fortunately, many local sheriffs have refused to enforce her orders, and many citizens have ignored them. The East Germans could not ignore the Stasi without serious consequences. Governor Kate Brown and her Neo-Stasi approach are so far easy to ignore.
In the meantime, let’s focus our focus on politicians to central bankers, especially one.
Janet Yellen is back in the game
She is baaaaaaack! exactly.this paper Janet Yellen, who chaired the Federal Reserve Board from 2014 to 2018, reports that she will return to public service as Treasury Secretary of the new Biden administration.
The first thing to know about Yellen is that she doesn’t understand money and financial economics. She is a labor economist with a strong statistical tendency. She believes in false models such as the Phillips curve, which assumes the inverse relationship between low unemployment and high inflation. There is no such relationship.
In the late 1970s we experienced high inflation and high unemployment. From 2009 to 2016, inflation was low and unemployment was high. In the late 1980s, unemployment and inflation were low. Go to the figure. There was a reason for all these episodes, but the Phillips curve was unexplained and unpredictable. Still, Janet Yellen used it as a guide to failed monetary policy at the Fed.
Yellen has been raising interest rates too quickly since 2015, fearing that lower unemployment could lead to higher inflation. She was completely wrong, driving the economy almost into recession by 2018, when Jay Powell took over and eventually cut interest rates again. Yellen also knows little about the effects of exchange rates and international capital flows. She does not understand the importance of the Eurodollar market in determining global liquidity.
Her term as Treasury Secretary will be disastrous for the US dollar and a huge success for the yuan as the currency war revives. It’s all bad enough. But Yellen’s story gets worse. Biden’s economic policy is strongly influenced by the Democratic Bernie Sanders faction.
Bernie Sanders and his similar major economist are Stephanie Kelton, a professor at the State University of New York and a leading theorist in Modern Monetary Theory (MMT).
In my latest book New Great Depression Let’s take a closer look at how MMT is unleashed by the American people. (I’ll show you how to get it later in the week.)
MMT says the US can spend as much as it needs, borrow to make up for the deficit, and monetize its debt with the Fed’s money printing. One of the keys to MMT is to treat the Treasury and the Fed as a single entity with a single balance sheet.
That’s not legally true, but MMT claims that it can operate as if the government did. This means consolidating US Treasury and federal operations into a single engine for spending, borrowing, and printing. Is there a better way to achieve the merger than appointing a former Fed chief as the new Treasury chief and leaving the former deputy chief back in the Fed?
A trillion US dollar deficit spending plan will soon be revealed by the new Congress. The US Treasury spends that money. The Federal Reserve Board will purchase US Treasury debt with the newly printed money. The United States will go bankrupt. And ignorant Janet Yellen oversees the whole operation.
Bernie Sanders will surely approve.
all the best,
Strategist, Daily Reckoning Australia
PS: Australia’s Massive COVID Depression — Learn which investments to accumulate and which to avoid to give you the best chance of maintaining wealth during a recession. Click here for more information.
Neo-Stasi Approach — Janet Yellen Spells US Dollar Disaster
https://www.dailyreckoning.com.au/neo-stasi-approach-janet-yellen-disaster-for-us-dollar/2021/01/27/ Neo-Stasi Approach — Janet Yellen Spells US Dollar Disaster