Former Head Of The Fed: “We Could Have Another Financial Crisis”

by | Dec 11, 2018 | Headline News | 11 comments

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    The former head of the Federal Reserve, the United States’ central bank, warns that another financial crisis is most definitely possible. Janet Yellen said that the tools that could help prevent another crisis are not all that great in the U.S.

    Of course, what Yellen means is that the government is not using enough violence and force in the form of regulations to prevent an economic meltdown of the central bank’s own doing. “I’m not sure we’re working on those things in the way we should, and then there remain holes, and then there’s regulatory pushback,” Yellen said. “So I do worry that we could have another financial crisis.″ According to NBC News, Yellen cited leverage loans as an area of concern, something also mentioned by the current Fed leadership. She also said that regulators can only address such problems at individual banks, not throughout the financial system. The former Fed chair, now a scholar at the Brookings Institute, said there remains an agenda of unfinished regulation.

    Current Fed officials, however, have pushed back against criticism that their reforms are making the system riskier, saying they making the system more efficient. Michael Pento, a money manager and economist says that Yellen is right that a depression is coming, but the central bank is going to be one causing the disaster, not a lack of regulation.

    “Unfortunately, a worldwide depression is coming like we have never seen before because we have never before had so much debt sit on top of artificially depressed interest rates,” said Pento in an interview with USA Watchdog‘s Greg Hunter back in May.  “The hubris and arrogance of central banks to take that away, they are way too late in doing so, and they think they can do this with impunity.  They are dead wrong They (central banks) have always caused recessions.  We are heading into a global depression.”

    Yellen only commented about current interest rate levels and avoided making a statement on the current financial situation of the United States.  “Interest rates are low. I believe they’re likely to remain lower than they’ve been in past decades.” She noted that in a typical recession, the Fed cuts rate by five percentage points while the “normal level” of short-term interest rate is usually around 3 percent. “That means there’s much less scope to cut short-term rates than there’s been historically in the United States,″ Yellen said.


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      1. Let the hammer drop, but this time, let’s not give the banks any bailouts. They need to fail, permanently. No such thing as “too big to fail”. That includes the fed.

      2. Chicken Little; the gift that keeps on giving. [SARCASM]

      3. A major root cause; the evisceration of Glass-Steagall. The solution is its re-incorporation in its 1933 form.

        • Yes it is… and the other branch of that root is Janet Yellen and her cronies. Idiot academics all.

          • The picture at the top of this article is her classic “I don’t have a f*cking clue” pose.

      4. No shit Sherlock.

      5. I guess I have to chime in,
        bring on the Depression!
        This artificial inflation is killing me.
        You cut cut the value of my property 75%
        and I’d still be ahead of the game.
        I’d also still have a pot to piss in.

      6. Three Intentions
        I will cry to regret
        and slaughter my heart
        on a desolate rock in the steppe
        and run in the wilderness run
        in their illusions in the mirrors
        of bullets while shooing
        victory and defeat
        and also the dead
        with war’s twig

        I will arch my back like a noble wolf
        and howl in the plains
        until the plains go mad
        and the god of soldiers spots me lifeless
        in war’s meanness
        I’d be pleased yet angry
        and forlorn of seas that have tolled
        for thirty centuries
        they come and go

        I call to my friend
        and leave him standing in speech
        I call to my lover
        and leave her insomniac

      7. We could have another financial crisis, but it won’t be the FED’s, or the Ruling Class’ financial crisis. All financial crisis is what us bottom feeders have. The Ruling Class has already “priced in” a financial collapse. How much more crisis do you want?

      8. Interesting how when these people are in office they always say that everything is fine. Once out, the sky is about to fall. Sooner or later the big one will hit. Right now, the central banks seem to be playing a giant game of Jenga. (Isn’t that the game where players pull out pieces until someone is stuck pulling the one that crashes the tower?)

        Best thing for people is to stay out of their game and, of course, prepare.

      9. Got Gold?

        If people think the Central Banks are gonna give up on their gold holdings, they are crazy. The gold the have represents such a massive leverage on human labour they will NEVER give it up.

        The value of labour measured in fiat is just about zero these days. They don’t even bother taxing the lower-end wage earners.

        What this means? Revolution? Or slavery to some sort of “beast”
        system? (See France)


        After writing this… I feel my social credit score dropping in China.

        No one wants to face the truth! And mathematically, the truth seems to be collapse. A collapse yes, but hey, when things seem out of control ask yourself just who’s control is it out of? Not mine. Likely not yours.

        Collapse could be the best option at this time. Given Trump is getting close to 2020, it might be the best option for the TPTB as well.

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