Yellen's Disingenuous Dollar Remarks

Janet Yellen is former Fed Chair and Biden's nominee to be Treasury Secretary. At her confirmation hearing the WSJ reports Yellen to Make Clear U.S. Doesn’t Seek Weak Dollar.

Janet Yellen is expected to affirm the U.S.’s commitment to market-determined exchange rates when she testifies on Capitol Hill Tuesday, and she will make clear the U.S. doesn’t seek a weaker dollar for competitive advantage, according to Biden transition officials familiar with her hearing preparation.

Officials responsible for briefing Ms. Yellen said she is prepared to say, “The value of the U.S. dollar and other currencies should be determined by markets. Markets adjust to reflect variations in economic performance and generally facilitate adjustments in the global economy.”

“The United States doesn’t seek a weaker currency to gain competitive advantage,” she is prepared to say, according to the officials. “We should oppose attempts by other countries to do so.”

Well La Dee Frickin Da

For starters, it is Fed policy and government fiscal policy that sets the tone for the US dollar.

Yellen can make whatever swiss cheese statements she wants but how would a central bank act if it wanted to sink the dollar? 

Steps to Weaken a Currency

  1. Cut interest rates
  2. Engage in massive QE balance sheet expansion
  3. Pledge to keep rates low indefinitely
  4. Pledge to ignore inflation and let it run hot to make up for alleged undershooting 
  5. Encouraging more fiscal stimulus

The Jerome Powell Fed is five for five on doing the very things that would cause the dollar to sink and Yellen supports all of them.

Other counties are doing many of the same things and if they weren't the dollar would be dropping faster. 

Regardless, please ignore her disingenuous, cheesy statements because actions speak louder than holes. 

Short Tribute to Yellen


If you can stand 30 seconds of ads, this is a funny 5 minute Saturday Night Live skit.

Musical Tribute to 4 Fed Chairs Including Yellen

If you haven't watched my video in entirety, please do so. Thanks.

Open Letter to the Fed

In an open letter to the Fed, I asked Powell a set of questions on inflation expectations, demographics, the Phillips Curve, and the CPI, all areas in which the Fed has made repeated errors.

Hello Jerome Powell, We Have Questions

My questions, sent directly to the Fed are of course unanswered.

Hello Jerome Powell, I ask again, instead of failed bubble-blowing tactics, how about some answers?


Competitive Currency Debasement 101 Class is in Session

Janet Yellen is Jo Biden's Treasury Secretary nominee. She claims to support "market forces" as the driver for the US dollar. What does that really mean in a practical sense?

Yellen is Yellin' For More Free Stuff

Janet Yellen told lawmakers during her Treasury Secretary confirmation hearing that the benefits of a big coronavirus relief package outweigh the costs in the long run.

Gold Soars, Dollar Sinks After US Treasury Praises Weaker Dollar

The US dollar continued its plunge today after US Treasury Secretary said a weaker dollar was good for trade.

Gold Surprisingly Correlated With the US Dollar

Since 2015, gold has been correlated to the US dollar. What's next?

Hold the Champagne and Truffles: Yellen's Story Not Yet Written

Janet Yellen chaired her last Fed meeting today. On her watch, stocks soared and unemployment fell. Hold the cheers.

US Dollar Breakdown: What’s Next?

The US dollar index is down about 12% from the highs of late last year. It has broken support, no matter where you draw the trendline.

Gold's vs the US Dollar: Correlation Is Not What Most Think

Gold is not as correlated to the US dollar as most think.

Gold is Not a Function of the US Dollar Nor is Gold an Inflation Hedge

Swings in the US dollar have no long-term impact in the price of gold. Nor is gold an inflation hedge.

Yellen "Not Another Financial Crisis in Our Lifetimes" Warns of "Gigantic Holes"

Last year, Janet Yellen stated her belief there would not be another financial crisis. Already she is worried.