STAFF NEWS & ANALYSIS
The Fed Should Be Kept Independent?
By Daily Bell Staff - February 20, 2017

President Trump, Keep The Federal Reserve Independent – It’s Too Expensive Not To … There is talk about that Donald Trump and his administration will try to bring the Federal Reserve to heel with some appointments to the board of that body. … But there’s a definite limit to how far this should go for, as not enough people know, the point of the Fed is to curb the enthusiasms of the politicians. And not leaving it operationally independent would be very expensive indeed, so much so as to be entirely counter productive. – Forbes

According to this article, it is better to leave the Federal Reserve alone because to do anything else within the context of a viable Fed would cost too much.

The article does admit that it is possible to change the Fed. In fact Patrick T. McHenry (R-N.C.), vice chairman of the House Financial Services Committee, has already written to Janet Yellen indicating she has no authority to engage in certain regulatory practices.

Citing the “clear message by President Donald Trump” to put America first, he called on her to cease all international negotiations on regulations covering bank capital, systemic risk and other areas, and suggested that the Fed had no authority to engage in such activities.

McHenry went on to call the Fed’s activities “secretive,” and suggested that its participation in international forums was “killing American jobs.” His letter echoes the heated rhetoric by President Trump during the campaign in which he said that Yellen should be “ashamed of herself” for keeping interest rates low for political reasons.

This is a big battle shaping up regarding the Fed. The Fed apparently has not been given authority to carry out international negotiations. It’s not even an international body.

On the other hand, the Fed has to carry out these negotiations within the context of its growing globalism. Otherwise it has to admit its merely one more bureaucratic institution with a job to do. The Fed was not set up in this way.

The Fed has always exceeded its boundaries. In fact, it has never recognized boundaries to begin with. From near to its beginnings, in the 1920s, the Fed did much that was illegal. It consistently issued more notes than it had gold backing.

But this article argues nonetheless that the Fed’s independence is a very “valuable thing.”

The article point out that Trump can fill up to three vacancies on the board this year. So the central bank may not be exempt from a Trump-led shakeup, strategist, Mark Grant said on CNBC on Monday.

“The Fed of today is not going to be the Fed of tomorrow,” the chief strategist at Hilltop Securities said to “Squawk Box.”

Grant believed the Trump administration could fill key vacancies to advance their vision of the way the Fed should operate. But the article says the people that Trump appoints should not just be order takers. They should believe in the legitimate independence of the Fed.

The article notes that buyers of institutional debt will always want more interest. It is hard in a scenario where the Fed is not independent to imagine the Fed keeping rates low. Rates would go up and stay up.

So, Fed independence is something we don’t want to compromise. Simply because doing so will be so expensive.

But there is a larger issue which is whether the administration should or can get rid of the Fed entirely. Then it wouldn’t have to worry about the price of interest.

We are told it would simply be too expensive and complicated to get rid of the Fed altogether. But it could also be argued that it is too expensive and complicated NOT to get rid of it if you have the opportunity.

It has nothing really to do with expense. The Fed is a committed globalist institution. It will not suddenly turn into a passive bureaucracy. The people behind it didn’t spend all this time and money on it merely to give the government a kind of order-taking entity,

No, the Fed is supposed to control the value of money on behalf of the international bankers that run it from behind the scenes. The CIA at the very top is also run from abroad. As is even the Pentagon.

Conclusion: These institutions are the reasons the US is no longer in charge of its own destiny and hasn’t been for many years. Trump is no doubt going to try to rein in the Fed. But getting rid of it altogether would be an even better idea.

 

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  • Rusty Sherrick

    Are you serious , the Fed is a collective bunch of crooks who are raping the U.S.and at the same time ruining the economy. The so called experts there who are suppose to setting economic indicators are always behind and usually miss by a lot.WE need to go back on the gold standard print our own money and tell them to leave town.

  • disqus_QZX8ENhLyb

    The very existence of the FED violates all concepts of “free enterprise.” If we had a truly free economy and society, gold and silver (precious metals) would be money and fiat-currency (“legal-tender”) would not exist. Government has absolutely no call or mandate to interfere with the money that the “free market” chooses to use in commerce.

    Money, real true money, has NEVER been a function of government. Governments took real true money away from a submissive people who let them get away with it.

    The result?

    Government and all its hangers-on enrich themselves at everyone else’s expense because government gets to spend the “legal tender” first. The rest of us get the downward “trickles.”

    It is not a simple thing to understand, but EVERYTHING should be free from governmental intervention in a truly free society. Governments did not invent money. The people did and governments took away market-determined and controlled money because governments could then steal at will.

    In addition, banking should be freely open to anyone who wishes to open a bank and be responsible for their actions. No “bailouts”. No governmental regulation or intervention except to thwart fraud and theft. Full competition. Always susceptible to failure should dishonesties prevail.

    “Inflation” is a “hidden-tax” that exists ONLY with fiat-currency. Throw the thugs out!

    • autonomous

      Money has been under the control of the US government since the constitution was ratified. At least in that respect, our founders/undertakers put us “…among the powers of the earth, the separate and equal station…”

  • Bruce C.

    DB: “We are told it would simply be too expensive and complicated to get rid of the Fed altogether.”

    Where does any one say THAT?

    I think your earlier statement was more accurate: “… it is better to leave the Federal Reserve alone because to do anything else WITHIN THE CONTEXT OF A VIABLE FED would cost too much.” (Emphasis mine.)

    That’s a critical difference and one of the most powerful arguments in favor of ending the Fed entirely. After all, if globalism and a global currency is the big, growing fear among us, if the Fed remains intact how could the US (government) keep the Fed from becoming even more “independent” and globalist than it already has? Given the trends and its basically independent constitution as is, one could argue that allowing it to continue at this point would virtually guarantee it becoming fully independent and globalist, and hence “more expensive”, and not just monetarily.

  • Philip McCormack

    philip. Who gave the Fed the right to bail out banks? Not the tax payers! Read Professor Antal Fekete-Open the mint to gold, and Bitcoin’s Flawed Premise. No wonder he calls it lipstick on a pig. The Fed should be removed and the ongoing ‘partners’ sued for fraud and their fortunes confiscated and returned to the taxpayers, no imprisonment, just barred from banking or any political position. What a dreamer!
    Philip

  • Mstrjack

    Indeed exposing the elite cabal’s shenanigans would be far “Too Expensive” for the counterfeiters! The 1% would lose $Trillions while 99% of the people would gain $Trillions. The Powers That Be do not want that!! Don’t Expose Their Secret Theft To The World! For Heavens Sake!

    Yes, Mr. Forbes, it would be counterproductive to the globalist movement for sure! Exposing the counterfeiters as the thieves they are to the masses of the people would surely bring down their entire globalist agenda.

  • FakeNewsBreaker

    The Fed is a private institution owned by the major banks and the NY Fed is even more exclusive..it is not independent nor has it ever been. It assists the deep state to the extent that it serves its own interests. Is this a straw man play on the part of the editorial staff?

    • The Fed is partially run by the us government, sorry.

      • Josh

        The fed cartel has an accomplice in the fedgov, but otherwise runs the show. While I’m sure the fed doesn’t run exactly as its masters would like it to, it runs close enough for them to build the nwo. The fed was also foisted upon we the people with the premise that no more financial panics would take place if the people just gave the fed the money power, and history has proven the fed doesn’t obstruct disasters, it creates them. Remember, only congress has the power to coin money and regulate the value thereof, giving that power to some other entity only results in the massive fraud we see today, where the fed gets something for nothing and has for over 100 years now.

  • autonomous

    Confusing article. Only in the conclusion did I get the sense that DB opposed the FED. Remain independent? When was it ever independent? It’s always been under the control of oligarchs.

    • Is it confusing? We think it’s fairly clear where we stand. Not with the Fed.

  • Praetor

    The Fed is not nor ever been independent. It is a part of the global governance. They own the Fed and every other central banking system on the planet. But human action could become a factor and that could be unpredictable.

    The old saying, throwing a wrench into the gears comes to mind. That would be chaos, but chaos maybe what’s needed, to get rid of Leviathan. Everything at this point is looking ugly.!!!

  • georgesilver

    Real money should be independent of governments and central banks.
    My slogan would be “Dead the Fed”.

  • rahrog

    Hack the Fed!!!

  • Josh

    Trump needs to direct the Treasury to print US dollars that bear no debt, and replace fed notes.

  • Don Duncan

    I’m a voluntaryist so I don’t want a coercive govt. I’m against the initiation of violence, threat thereof, and fraud, all hallmarks of governments worldwide. That said (meanwhile) I want free banking. That will happen with a Constitutional amendment forbidding govt. to intervene in business. Failing that, an amendment to forbid govt. to make any monetary law, e.g., the legal tender act, the Federal Reserve Act, or engage in money creation. By govt., I mean all govt., federal, state, county, city. We have nothing to fear except fear itself.

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