Some are calling for the Fed to be “reshaped” to better match the new US government. Is it really possible, considering those who currently compose it?
Here is a joke that did not find a fall, in the Stansberry Morning Market Preview :
“Democrats have called on President Joe Biden to replace former President Donald Trump’s choices at the Federal Reserve when their term expires later in the year, potentially reshaping the central bank. ”
The only plausible reason to replace those appointed by Trump would be to make the Federal Reserve even more responsive to the democratic program – that is, even more prepared to print money to cover the cost of programs the United States cannot afford.
Someone should tell them… they’re wasting their time. Those chosen by Trump are some of the darkest and most complacent morons to ever join the US central bank. Trying to find even more brainless idiots will be as fruitless a challenge as a vasectomy.
A servile Fed
Jerome Powell is Trump’s man. Ditto for Randal Quarles. And Richard Clarida. And Christopher Waller. And Miki Bowman. With the exception of Lael Brainard, appointed by Barack Obama, they were all chosen by Trump. And they run the Fed.
How on earth could the Fed be “reshaped” into a confederation of even more servile idiots… lower front… and completely lobotomized?
They are already printing money in proportions never seen in the United States. They inject $ 120 billion a month into the system – that’s more money every six months than was added over the entire period from the dollar’s beginnings in 1972 … to the year 2000.
And in recent weeks, almost all of these individuals have made public statements, proclaiming their full faith in stimulus spending to increase inflation… and stimulate the economy.
Yes, dear reader, the United States is already on the zombie highway… Hopping on good intentions and trampling on bad ones… with no way out.
An obvious solution
Readers are reluctant to link this last point, however.
They imagine there must be a way to change course… something that will “save” us… a president – perhaps Donald J. Trump himself – who could appoint a new set of Fed governors and put the brakes on all of this…
Readers often accuse us of giving up… of being defeatist. “You’re just complaining,” writes the average grumbler. “How about you offer a solution?” “
But the remedy is so incredibly obvious that there is no point in mentioning it: stop printing counterfeit money… allow interest rates to go where they want… and balance the federal budget. There is nothing mysterious about it.
After the gains, the pain!
In a matter of seconds, interest rates would rise… the equity and bond markets would collapse… the economy would enter a deep depression…
… The president and much of the US Congress would be dismissed or fired…
… it would be necessary to abandon bailouts, mismanagement and senseless and destructive wealth-destroying allocations (we would no longer speak of Green New Deal… Or a new round of aid checks)…
… And millions of businesses and households would go bankrupt.
This severe correction would set the scene for a long period of real prosperity, but there is no chance – not the least – that policymakers will let it take its course.
Alas, we live in the big world. We only control a very small part of it. And in the big world, things are happening… not always pleasant, as we will see tomorrow.
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