Yellen at the Poor

"You know, it occurs to me that the best way you hurt rich people is by turning them into poor people."
--Billy Ray Valentine (Trading Places)

ZeroHedge observes the irony of Fed chief Janet Yellen extolling the poor to save and build assets. The Fed's inflationary policies hammer the poor while rewarding the rich, thereby unnaturally increasing the distance between top and bottom of the social pyramid.

Moreover, by suppressing interest rates, the Fed discourages the very saving processes that Yellen seems to espouse. Instead, interest rate suppression encourages speculation as investors reach for yield.

Of course, perhaps that is what Yellen is suggesting that the poor to do. Borrow some of our cheap money and use it to speculate in the stock market.

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