Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20
China Recovered in Q2. Will the Red Dragon Sink Gold? - 23rd Jul 20
UK Covid19 MOT 6 Month Extensions Still Working Late July 2020? - 23rd Jul 20
How Did the Takeaway Apps Stocks Perform During the Lockdown? - 23rd Jul 20
US Stock Market Stalls Near A Double Peak - 23rd Jul 20
Parking at Lands End Car Park Cornwall - UK Holidays 2020 - 23rd Jul 20
Translating the Gold Index Signal into Gold Target - 23rd Jul 20
Weakness in commodity prices suggests a slowing economy - 23rd Jul 20
This Stock Market Stinks - But Not Why You May Think - 22nd Jul 20
Protracted G7 Economic Contraction – or Multiyear Global Depression - 22nd Jul 20
Gold and Oil: Be Aware of the "Spike" - 22nd Jul 20
US Online Casino Demographics: Who Plays Online For Money? - 22nd Jul 20
Machine Intelligence Quantum AI Stocks Mega-Trend Forecast 2020 to 2035! - 21st Jul 20
How to benefit from the big US Infrastructure push - 21st Jul 20
Gold and gold mining stocks are entering a strong seasonal phase - 21st Jul 20
Silver Eyes Key Breakout Levels as Inflation Heats Up - 21st Jul 20
Gold During Coronavirus Recession and Beyond - 21st Jul 20
US Election 2020: ‘A Major Bear Market of Political Decency’ - 21st Jul 20
Summertime Sizzle for Gold and Silver - 21st Jul 20
Overclockers UK Custom Built PC Review - Delivery and Unboxing (3) - 21st Jul 20
Will Coronavirus Vaccines Become a Bridge to Nowhere? - 20th Jul 20
Stock Market Time for Caution?  - 20th Jul 20
ClickTrades Review - The Importance of Dynamic Analysis and Educational Tools in Online Trading - 20th Jul 20
US Housing Market Collapse Second Phase Pending - 20th Jul 20
Capitalising on the AI Mega-trend - 20th Jul 20
Getting Started with Machine Learning - 20th Jul 20
Why Moores Law is NOT Dead! - 20th Jul 20
Help the Economy by Going Outside - 19th Jul 20
Stock Market Fantasy Finance: Follow the Money - 19th Jul 20
Did the Stock Market Bubble Just Pop? - 19th Jul 20
Quick Souring of the S&P 500 Stock Market Mood - 19th Jul 20
The Six-Year Jobs Recession - 19th Jul 20
Silver Demand Exploding! - 18th Jul 20
Tesco Scraps Covid Safe One Way Arrow Supermarket Shopping System - 18th Jul 20
The Rise of Online Pawnbroking - 17th Jul 20
Gold Rallies Together With U.S. Covid-19 Cases - 17th Jul 20
Gold & Silver Measured Moves - 17th Jul 20
The Bizarre Mathematics Of How Negative Interest Rates Create Stratospheric Profits - 17th Jul 20
From a Stocks Bull Market Far, Far Away, Virus Doomsday Scenerio! - 16th Jul 20
Fiscal Cliffs and the Self-destructing Treasury - 16th Jul 20
Dow Stock Market Crash Watch - Update - 16th Jul 20
Gold & Silver Gaining on US Dollar Weakness - 16th Jul 20
How to Find the Best Stocks to Invest In - 16th Jul 20
Overclockers UK Custom Build PC Review - 2. System Build Changes Communications - 16th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

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