The Senate Banking Committee is fixing to send to the full Senate tomorrow five nominees for governors of the Federal Reserve, including the chairman, Jerome Powell. The New York Sun opposes each of them (please see below). Yet our overriding concern is not the nominees themselves, but the failure of the senators to consider that the root of the problem in our economy lies with the system of fiat money itself.
We’ve been beating this drum in one orchestra or another since 1971, when America defaulted on its obligation under Bretton Woods to redeem at a 35th of an ounce of gold dollars presented to it by foreign governments. In the quarter-century of Bretton Woods, unemployment averaged 4.6 percent. Thomas Piketty’s inequality rate lurked at historic lows, as did the personal bankruptcy rate so closely watched by Senator Warren..............Sarah Bloom Raskin looks eager to take the Fed into the business of climate regulation for which it lacks a mandate. Senator McConnell has warned appointing her would make the Fed “a hyper-political super-legislature.” As for Lisa Cook, the Wall Street Journal this morning issued a devastating report on her hostility to open debate. Philip Jefferson appears to have been chosen more for his left-wing policy bona fides than any commitment to stable prices.........To Read More....
“When a clown enters a castle, he does not become a king; rather the castle becomes a circus …” — Turkish Proverb
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