Article Review #8: Simple Janet——The Monetary Android With A Broken Flash Drive

Once again we examine the fine and exquisite commentary found in an article by our most dear friend David Stockman. In this article he focus on the debt that America has and how the ideas of Janet Yellen are about as intellectual as those made by the toaster in your Kitchen. The first problem involves the negative interest rate which America, like many European countries, might soon be facing. Stockman argues that the way Keynesian economics used to handle this problem will not work for today's circumstances. He relates what is going on to what we learned in chapter 29 when he says that Fed can only impact our 18 trillion dollar economy, which include injecting central bank credit into the bond market he says the aim of this would be to get business and households to borrow more and to spend more. A big part of this article is that Stockman is denying that certain policies and Zero Interest Rates will work in the United States, and that they certainly have not been working as well here as they have in the European countries, and supposedly never will. Stockman insists that household debt has only increased since the current policies have been put into effect. here has actually been negative growth in household debt since the financial crisis. Janet claims it doesn't matter that the Fed has spent years falsely inflating equity markets through liquidity injections and putting assets under risk. Any correction in stock prices and regression of credit seem to just cause economic and job growth to slow down. That has to be stopped at all costs.