Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Brexit Party and Lib-Dems Pull Further Away from Labour and Tories in Latest Opinion Polls - 22nd May 19
The Deep State vs Donald Trump - US vs Them Part 2 - 21st May 19
Deep State & Financial Powers Worry about Alternative Currencies - 21st May 19
Gold’s Exciting Boredom - 21st May 19
Trade War Fears Again, Will Stocks Resume the Downtrend? - 21st May 19
Buffett Mistake Costs Him $4.3 Billion This Year—Here’s What Every Investor Can Learn from It - 21st May 19
Dow Stock Market Trend Forecast 2019 May Update - Video - 20th May 19
A Brief History of Financial Entropy - 20th May 19
Gold, MMT, Fiat Money Inflation In France - 20th May 19
WAR - Us versus Them Narrative - 20th May 19
US - Iran War Safe-haven Reasons to Own Gold - 20th May 19
How long does Google have to reference a website? - 20th May 19
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19
It’s Not Technology but the Fed That Is Taking Away Jobs - 16th May 19
Learn to Protect your Forex Trading Capital - 16th May 19
Gold Ratio Charts Offer The Keys to the Bull Market - 16th May 19
Is Someone Secretly Smashing the Stock Market at Night? - 16th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

Trump Readies Shake-up of Fed Banking Cartel

Interest-Rates / US Federal Reserve Bank Apr 03, 2019 - 06:40 PM GMT

By: MoneyMetals

Interest-Rates

Establishment journalists, establishment economists, and establishment politicians are freaking out. It seems they can’t cope with the prospect of an outspoken monetary reformer potentially becoming the next member of the Federal Reserve Board of Governors.

President Donald Trump announced recently he would nominate longtime free-market advocate and close political ally Stephen Moore to a currently vacant seat at the Fed.

“Trump’s choice of former campaign adviser Stephen Moore to serve on the Federal Reserve Board is stirring misgivings among some bankers,” reports Politico.

“Economists are furious,” according to QZ. “The news has been met with a heady combination of derision, bafflement, and general hullaballoo, with Moore variously described as ‘a loyalist, not an expert’.”


“He simply does not have the intellectual gravitas for this important job,” sniped snooty Harvard economist Gregory Mankiw, who formerly worked in the George W. Bush White House.

Alarmist Washington Post columnist Catherine Rampell warns that Moore could “inflict more long-term damage than any of Trump’s other nominations.”

A presidential appointment to the Federal Reserve Board of Governors is normally a mundane event that generates little public concern or controversy. All presidents – Republican and Democrat – tend to draw from the same pool of pre-approved insiders.

President Trump heeded the habits of his predecessors in elevating Fed institutionalist Jerome Powell to the position of chairman. Trump soon came to regret his Powell pick, however, publicly berating him over his support of interest-rate increases.

Trump tried deferring to the monetary establishment. Now he is sending it a sharp rebuke in the form of Stephen Moore.

The pro-establishment pack media is pouncing on Moore, with The Economist calling him “unfit for the Fed,” NPR claiming he “wouldn’t be good,” CNN complaining he owes $75,000 in taxes, and Bloomberg fretting he “would jeopardize the Fed’s hard-won reputation for fairness and independence.”

An intact Fed reputation for being “fair” and “independent”? That is fake news for sure!

The Federal Reserve Has TRASHED Its Own Reputation

The financial media is trying to gaslight its readers into forgetting how the central bank has trashed its own reputation.

The Fed’s actions during the 2008 financial crisis – bailing out large financial institutions, picking winners and losers, pumping trillions of dollars into the bond and mortgage markets – revealed it to be beholden to the interests of bankers and politicians.

Stephen Moore’s critics say he is too political for the “independent” Fed. But, in reality, he wants to make the Federal Reserve less susceptible to political influences and less of an overarching mover of markets.

Moore proposes that the Fed adopt a rule-based monetary policy framework that pegs interest rates to real-world market signals.

Under Moore’s proposal, monetary policy would be guided by the movements in a basket of commodity prices.

Real assets would largely substitute for the arbitrary opinions and forecasts of the so-called experts at the Fed (who have a near perfect track record of failing to anticipate recessions and market crashes, many of which are actually caused or exacerbated by the Fed itself).

The commodity price rule would in theory have a constraining effect on monetary policy, similar to what a gold standard does.

But whereas a gold standard backs up the value of the currency and ensures stable price levels over time, a commodity basket under Moore’s rule would merely serve as a reference point. The currency wouldn’t actually be backed by physical commodities. The monetary system would still be fiat in nature.

While sound money advocates would prefer a return to precious metals defining the value of the dollar, that won’t happen anytime soon.

A fundamental transformation of the monetary system will probably have to wait for a currency crisis to come that causes a widespread, global loss of confidence in Federal Reserve Notes.

In the meantime, monetary reformers should be encouraged by President Trump’s newfound willingness to shake up the Fed.

If he can get Moore confirmed by the U.S. Senate to a seat on the Federal Reserve Board, sound money advocates would finally have an ally there – at least to the extent that he wants to diminish the arbitrary power wielded by central bankers over the economy.

Moore also advocates greater transparency in the notoriously secretive and swampy Federal Reserve System. He has called for the establishment of an independent monetary commission to audit and report on the Fed’s books, echoing candidate Donald Trump’s calls in 2016 to audit the Fed.

As Moore puts it, “Donald Trump wanted to drain the swamp. The Fed is the swamp.”

As Fed apologists conceive it, their privately owned banking cartel is akin to a pristine sanctuary that Trump now threatens to despoil. According to Vanity Fair’s William D. Cohan, “Like nearly everything he touches, Donald Trump is now in the process of thoroughly debasing the Federal Reserve...”

Fed Has Debased Our Currency by 97% Since 1913

“Debasing” is an interesting word choice. Like nearly every liberal journalist who makes a living penning anti-Trump hit pieces, Cohan fails to appreciate the irony of his hyperbolic attacks.

The Federal Reserve is literally an institution of debasement! It has been engaged in a steady campaign of debasing our money since its inception in 1913.

Under the Fed’s stewardship, dollars are no longer redeemable in gold. Quarters and dimes are no longer minted from silver. Even pennies, once made of solid copper, have been debased to cheaper zinc.

Since 1913, the currency has been so thoroughly debased, it has lost close to 97% of its value!

Moore wouldn’t (and couldn’t) reverse the debasing, to be sure. But his nomination does represent an important challenge to prevailing monetary policy orthodoxy – as evidenced by the hysterical reactions against him in the fake news media.

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2019 Stefan Gleason - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules