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Episode 27 September 12, 2019
CLP Topic: Economic Growth
Title: Does the Fed’s Job Performance Justify Its Independence?
Our podcast today examines the Fed’s argument that its independence from political influence is justified because their decisions are “based on the best interests of the nation, not the interests of a small group of politicians.”
The issue raised by the podcast is not the Fed’s decisions, it is the Fed’s performance and results of those decisions.
Our podcast argues that the Fed shifted its mission, in 1998, to stabilizing global financial conditions.
Their dismal economic performance must be viewed within the context of their effort to promote globalism, not create economic prosperity for common American citizens.
Prior to 1998, the national welfare function that the Fed aimed at improving was the national economic welfare, albeit, heavily skewed to the welfare of bankers and the wealthy social classes.
After 1998, when the Fed bailed out the Russian oligarchs, with $4 billion of U. S. tax revenues, the Fed viewed itself as “Banker-for-the World.”
There is nothing in Madison’s framework of checks and balances that authorizes citizens to restore the Fed’s mission back to the original goal of improving sovereign national prosperity and consistent economic growth.
The podcast evaluates the Fed’s job performance on 4 major criteria:
1. Promotion of stable economic growth in the domestic U. S. economy.
2. Promotion of a competitive U. S. banking industry.
3. Promotion of a sovereign U. S. domestic economy.
4. Promotion of high rates of domestic technological innovation.
Our podcast concludes that the Fed’s economic performance has resulted in a systematic series of boom-bust cycles, where the financial welfare of common citizens are devastated, while the privileged wealthy elite bankers escape unharmed.
We conclude that the Fed’s arbitrary discretion to manipulate the economy by setting interest rates must be taken away from them.
A better goal for national economic policy is to target gross domestic private business investment, which leads to high rates of technological innovation, which create new future markets, which reduce wealth and income inequality.
In addition to removing the Fed’s discretion on setting short-term interest rates, the U. S. Congress should authorize the SEC to create a GDP futures currency market that would help bankers find the natural real rate of interest to charge each other in overnight bank loans.
I am Laurie Thomas Vass, and this is the copyrighted Citizen Liberty Party News Network podcast for September 12, 2019.
Our podcast today is under the CLP topic category Economic Growth, and is titled, Does the Fed’s Economic Performance Justify Its Independence?
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