Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
BREWING FINANCIAL CRISIS 2.0 Suggests RECESSION 2022 - 28th Jan 22
Financial Stocks Sector ETF XLF $37.50 Continues To Present Opportunities - 28th Jan 22
Stock Market Rushing Headlong - 28th Jan 22
The right way to play Climate Change Investing (not green energy stocks) - 28th Jan 22
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Federal Reserve vs. Judy Shelton And Gold

Commodities / Gold & Silver 2020 Sep 07, 2020 - 03:20 PM GMT

By: Kelsey_Williams

Commodities

Those in favor of Judy Shelton’s approval by Congress, pursuant to her nomination to the Federal Reserve Board Of Governors, should not be surprised by the torrent of criticism directed at her.

A letter published and signed by former Federal Reserve officials and staffers called on the Senate to reject her nomination, stating that “Ms. Shelton’s views are so extreme and ill-considered as to be an unnecessary distraction from the tasks at hand…”

Her “extreme” views were referred to in a general statement of condemnation:


Ms. Shelton has a decades-long record of writings and statements that call into question her fitness for a spot on the Fed’s Board of Governors”. This was followed by citation of the specific issues:

“She has advocated for a return to the gold standard; she has questioned the need for federal deposit insurance; she has even questioned the need for a central bank at all.” 

FED CONDEMNATION OF SHELTON IS MOTIVATED BY FEAR

Would these specific views have been considered extreme a century ago? No. Are they extreme now? No. Then why all the fuss?

The statement by former Fed officials has been published openly and is prompted out of fear. Fear of discovery and exposure; and fear of a possible end to the biggest Ponzi scheme of all time.

If someone with Ms. Shelton’s views were to be sitting on the Federal Reserve Board of Governors, that individual would have a platform to call attention to the facts at hand.  A more public recognition of those facts could change measurably the current perception of the Fed. In addition, it might also signal the possible end of the central bank.

It was established in 1913 by congressional vote. It is, ostensibly, an institution that is responsible for, and actively pursues management of the economy. The goal is economic stability.

PURPOSE OF FEDERAL RESERVE

But that is not its true purpose. The Federal Reserve is a “banker’s bank”. As such it facilitates and orchestrates a financial environment which allows banks to do what they do best – loan money.

On a retail basis, this “power” to create and loan money is best illustrated by the system of fractional-reserve banking. The system of fractional-reserve banking fosters unending expansion of the money supply via loans. That is what banks do: create money, loan it to others, and collect interest. (see: Origin And Danger Of Fractional-Reserve Banking)

The Fed’s expansion of the supply of money and credit, along with additional creation of money in the form of loans granted via fractional-reserve banking, is inflation. The loss of purchasing power of the US dollar and the higher prices you pay over time for all goods and services are the effects of inflation that has already been created by governments and central banks.

If Judy Shelton was confirmed as a member of the Federal Reserve Board, maybe she would she say more about this publicly in her new role. Or maybe she would become silent.

More than forty years ago, a former Fed chairman, who at the time was an  economist and private consultant, received some similar attention because of some not entirely dissimilar viewpoints, particularly about gold and the gold standard. After his appointment as Chairman of the Federal Reserve Board of Governors in 1987, Alan Greenspan said very little about gold.

As a board member, Ms. Shelton will not be in control; but she might be a disruption to ‘business as usual’ at the Fed. Maybe this is what is meant by reference to Ms. Shelton’s views as “an unnecessary distraction from the tasks at hand”.

Probably the most blatant condemnation of Judy Shelton comes in an article by Steven Rattner, titled “God Help Us If Judy Shelton Joins The Fed”.

For some people, it might make more sense to say “God Help Us If Judy Shelton’s Nomination Is Not Confirmed”. On the other hand, it might not make any difference.

Mr. Rattner said that “The Federal Reserve is an indispensable player in managing our economy”. That cannot even scarcely be considered a true statement when the facts are known and acknowledged.

The truth is that the Federal Reserve has been mismanaging the economy for over one hundred years. The effects of their infinite money creation have destroyed the value of the US dollar which is now worth only $.01 cent compared to $1.00 when the Fed assumed command.

Since the effects of inflation are  volatile and unpredictable, the Federal Reserve spends most of its time now trying to manage the ill effects and unintended consequences of its own actions.

RE: GREAT DEPRESSION – FED MADE THINGS WORSE

Regarding Ms. Shelton’s views on gold, Mr. Rattner referred to the gold standard as “a significant culprit in deepening the Great Depression” which is not true.

The length and depths of the Great Depression were the result of government attempts to fight the necessary purging that was taking place. If it had been allowed to run its course without public works programs, wage supports, and a national government who tried to “spend” us into recovery and wellness, the Great Depression would have been over much sooner

Under a gold standard, accompanied by convertibility, gold acts as a restraint on a free spending government. The reason all nations have abandoned a gold standard is because they do not want to be limited in their desire to create limitless amounts of fiat money. (see Gold, US Dollar And Inflation)

As it appears now, Judy Shelton brings a refreshingly different perspective to central banking; and offers the potential for positive change – from the inside.

If that were not the case, it is doubtful that so many of those with influence within that domain would be so open in their attempts to stop her.

Kelsey Williams is the author of two books: INFLATION, WHAT IT IS, WHAT IT ISN’T, AND WHO’S RESPONSIBLE FOR IT and ALL HAIL

THE FED!

By Kelsey Williams

http://www.kelseywilliamsgold.com

Kelsey Williams is a retired financial professional living in Southern Utah.  His website, Kelsey’s Gold Facts, contains self-authored articles written for the purpose of educating others about Gold within an historical context.

© 2020 Copyright Kelsey Williams - 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