EDITOR NOTE: The difference between a middle class and a working class is that the middle class can convert its income from labor into capital to be saved and invested whereas the working class has very little means beyond converting their income into consumption. Last week, our Treasury Secretary Janet Yellen participated in a virtual meeting with the G7 finance ministers and central bank governors. Her message echoes the same agenda as that signaled by the IMF and World Economic Forum: go big on fiscal spending, save the environment, and level the “outcomes” (not playing field) for the working class. Most of this is done by (take a guess) more spending--increasing the federal debt and expecting the Fed to print enough dollars to fulfill the Treasury’s agenda. In the end, we all end up paying for this, as any form of fiscal spending or money printing is a claim on our future income via dollar debasement. Unless you hedge your wealth now, assuming that the majority of your income isn’t coming from the stock market, then your capacity to convert income to capital will be all but erased. You'll be forced into immediate consumption. A working class lifestyle? Perhaps. But just call it what it really is (or can be): serfdom.
Earlier today, Secretary of the Treasury Janet L. Yellen participated in a virtual meeting with G7 finance ministers and central bank governors.
Secretary Yellen emphasized the commitment of the Biden Administration to multilateralism to solve global issues, stating that the United States “places a high priority on deepening our international engagement and strengthening our alliances.”
Secretary Yellen also stressed the importance of providing further fiscal support to promote a robust and lasting recovery. She emphasized that “the time to go big is now” and that the G7 should be focused on what more we can do to provide support at this time.
She expressed strong support for G7 efforts to tackle climate change, highlighting that her colleagues should expect the Treasury Department’s engagement on this issue to change dramatically relative to the last four years. The Secretary noted “we understand the crucial role that the United States must play in the global climate effort.”
Finally, Secretary Yellen conveyed her strong belief that G7 countries—in coordination with international financial institutions—must work to address the challenges facing low-income countries who are struggling to respond to the pandemic.
Originally posted on Treasury.gov