Janet Yellen: “Not a Bubble Economy”

07 Jun

Ms. Yellen is nervous.  Maybe she’s not used to public speaking.  Maybe she’s intimidated by the presence of Ben Bernanke and Paul Volcker.  Maybe she’s lying and, unlike Obama, has no confidence in her ability to lie convincingly.

The following video is short and fairly dull, but as you’ll read, there’s a point to noticing Ms. Yellen’s repeated claims that the U.S. is not a “bubble economy”.

video  00:02:34



The U.S. economy is not a “bubble economy”?

M’thinks Ms. Yellen doth protest too much.

•  Suppose I maxed-out all of my credit cards, borrowed heavily from the local bank, and hit all of my friends and fans for every dime I could beg, borrow or steal.

Suppose I used all the money I borrowed to buy a new $1 million mansion, a Tesla Model S auto and an extensive new wardrobe.  Anyone looking at my clothes, car and home would suppose that I must have a great job, a strong income stream and be very prosperous.

But what if they learned how little money I actually make and how deeply indebted I was?  Do you suppose that they’d realize that my seemingly-prosperous lifestyle was mostly an illusion based on debt rather than productivity. and I was a fraud?

If my lifestyle was mostly illusion, would it be fair to call me a fraud and my lifestyle a “bubble” that was inflated by debt that was excessive (and even irrational since I could never really repay it)?


•  Now, apply the same principles to our allegedly strong U.S. economy:

The “official” National Debt has more than doubled since Obama took office and is now nearly $20 trillion.

John Williams ( claims the true national debt is closer to $100 trillion.  The Congressional Budget Office and economist Laurence Kotlikoff have said that, including unfunded liabilities, the U.S. government’s  true national debt is over $200 trillion.

My question to you, dear reader, and to Ms. Yellen is this:  How can any rational person claim that–despite being built on at least $20 trillion in National Debt that won’t  ever be repaid in full–the U.S. economy is strong, self-supporting, and definitely not a “bubble economy”?

Of course it’s a “bubble economy”.  All modern economic “bubbles” are built on excess and irrational debt.  The “bubbles” are inflated with debt (mere promises to pay).  Hasn’t our seemingly strong (but overly-indebted) U.S. economy been “inflated” (stimulated) with excess debt?  Isn’t that what the Quantitative Easing (QE) of the past several years has been all about–to “stimulate”/”inflate” the U.S. economy with trillions of dollars worth of unpayable debt-instruments (promises to pay)?

That being so, how can Janet Yellen or anyone else claim that the U.S. is not a “bubble economy”–and keep a straight face?

The truth is that the U.S. economy is a “bubble economy”.  Our enormous debt proves that it’s a “bubble”.   As such, it’s certain to “pop”–and probably not so long from now.

In fact, since the global monetary system is based on debt, the whole global economy is a “bubble economy” that’s certain to “pop”.


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11 responses to “Janet Yellen: “Not a Bubble Economy”

  1. Blonddbythelight

    June 7, 2016 at 5:52 PM

    It puzzles me how so many are still stuck in the sound money principles that went out the door 80+ years ago. Using weights and measures that simply don’t apply and haven’t applied for decades.

    We are in a debt based fiat currency society where debt IS money.

    Why does the “administration” continuously want to raise the debt ceiling? Why, for more money (debt based) of course.

    The National Debt is the motherlode of money, after all, debt IS money. This is why the ND will never be paid down, it can’t be paid down, without real money. lol So we sit around day after day passing around IOU’s aka notes, receipts without the substance, that aren’t backed by anything. Just passing around debt.

    IMHO, the ND is also the outstanding credits held in trust that are owed to the people, once the people start using correct weights and measures.

  2. palani

    June 8, 2016 at 6:29 AM

    All this attention to the NATIONAL debt when focus should be on the FEDERAL debt. This FEDERAL debt is fixed by Congress at $346,681,016 and has not changed one penny since 1878; whereas the NATIONAL debt owed by some fictitious entity to some unknown corporate entity need no repayment because it has no connection to anything real.

    What matter an account of eighty trillions of dollars when you lack the sense to define even what one dollar is?

  3. dog-move

    June 8, 2016 at 12:30 PM

    The bubble ecomomy is the norm for most. Without the buuble economy most cannot survive, it is all they know. Those in the bubble know not that they are within the bubble. The modern popular debt delusion is the bubble of the day. Those in the bubble don’t have any metal assets just paper debt assets.One may determine, with the bubble at it’s largest diameter ever, confidence in the bubble economy is likely at it’s highest level ever. It is a safe feeling to be outside the bubble as one can possibly be.

    • Adask

      June 8, 2016 at 1:37 PM

      Those who would prosper or even survive must begin to not merely “think outside the box,” but “think outside the bubble”–if they can first see or even imagine that “bubble”.

  4. Dan Cropper, PE

    June 8, 2016 at 2:51 PM

    Other than purchasing gold, silver, or other commodities, how can one escape the growing bubble and find a system of exchange outside the bubble, specifically for the exchange of labor energy for value or substance?? And what is available now, for use before the elasticity of the bubble membrane fails – the bond market??? The chotic deflation is coming, how can one get ahead of it???

    • Adask

      June 9, 2016 at 7:30 AM

      I don’t know that one can “get ahead” of the coming trouble in the sense of “escaping” that trouble. From my perspective, the objective is less to “escape” than to “survive”. We seem to see the trouble coming. I can’t think of a place to run to to escape that trouble. Instead, it may be that the best you can expect is to dig a fox hole and hunker down in it while the coming tornado roars but also eventually dissipates.

  5. Dan Cropper, PE

    June 8, 2016 at 3:56 PM

    Other than purchasing gold, silver, or other commodities, today where can one exchange labor or energy for value or substance, to get ahead of the bubble deflation??? The bond market represents the elasticity of the bubble membrane, so when the bond market fails, the HYPER inflation of commodity prices in debt instruments (USD) will begin, until total failure occurs. The relief velocity óf currency will be super-sonic riding a hyperbolic curve down in the initial hours, days, and weeks until equalibrium is achieved, just like an expansion port or valve discharge on a pressure vessel. Except the percieved value of paper dollars will vanish, as everyone is unloading paper dollars (USD). It’s a magic trick by the international bankers, used over and over again, The true value of gold and other commodities used for exchange should remain nearly constant over time. I’ve heard it said that the purchase of a car in the 1930s and the late 1970s took the same number of gold coins even though the dollar values were drastically different. When will we come up with a new sustainable system of commerce that is not dictated to us by the international bankers or the governments they own?? The United States is the model for the world using the UN and debt and bankruptcy to consolidate wealth into the international bankers hands to finalize a one world totalitian government and society. Just like the logo for Chase Bank, the meteorological equations for a hurricane are used to drive wealth to a few when those same equations are used in finance and banking – debt creates the negative air pressure driving wealth from far away, like the 500 mile bands of a hurricane seen from space. Electrical engineering equations are used in banking and finance as well, converting variables into financial terms. There is nothing new under the sun. It’s time to change the motive from profit (rarity creating value) to abundance for the next commercial model. Equity and equality for all?? What say you??

    • moon

      June 9, 2016 at 9:25 AM

      It’s doubtful that I can answer all your questions. Some of them, I may not even comprehend. However, here are a few thoughts that work for me (in no particular order):

      I’m here in this physical plane to learn the lessons I’m here to learn, help some others if I can, and do no harm.

      I seem to learn more from adverse situations than from walking in the park.

      The increase in my own wealth is directly related to my own efforts.

      One’s wealth has much to do with what one can live without.

      I am the captain of my own ship.

      Two can live as inexpensively as one only half as long.

      No government/corporate association is best…gov’t/corp – there’s ye bubble/trouble.

      A car’s purchase was about the same in gold during the 1930s, the 1970s, and last week.

      Buy when others are selling, sell when others are buying.

      Abundance is a result of profit.

      All men may be created equal, but they probably won’t stay that way…nor should they.

      Hope these help.

  6. David Merrill

    June 10, 2016 at 4:39 AM

    “• Suppose I maxed-out all of my credit cards, borrowed heavily from the local bank, and hit all of my friends and fans for every dime I could beg, borrow or steal.”

    If you endorse private credit from the Fed, you do all that.

  7. dog-move

    June 10, 2016 at 1:17 PM

    They may try to keep the bubble in place until they install Mrs. Clinton into her 3rd term. Remember how her first term started with the healthcare fiasco and the Waco tragedy. I,m betting the collapsing markets worldwide will be her new Waco scorched global markets plan, yes planned. Still CONtrolled collateral damage, many more burned in a different manner.

  8. cynthia, lawful given name

    June 13, 2016 at 8:22 AM

    All above i in most cases fully concur with. Know that all “money” is an illusion and a very small handful have taken and passed a very curious form of ‘test’ with said “legal” esquire attorney “court” (ecclesiastical parish) and “state government” for which they not only get direct access to said “cross” jesuit funds, but also have assisted in “GAAP said fictitious ‘national debt’ ” to remove a good chunk. No, I hold no tangible evidence, but by logic from Chicago Federal Reserve Publications titled “The Two Faces of Debt” and “Modern Money Mechanics” along with holding fully authenticated “birth” record, it seems fully feasible for the authenticated “birth” (VESSEL or commercial military ship) document self expresses that the document attached is “under seal” with “… full faith and credit…” which credit is ‘money’


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