“I think that compromising the Fed’s independence is a horrible idea”
—Ethan Harris
Please show me where the Fed’s independence is loyal to the Nation while its primary function is to recycle the excess savings of mercantile regimes abroad and send out mercenaries to defend their store of value.
The private owners of the Federal Reserve Bank are a global group of members who consider themselves to be International and, as such, have little need for national loyalty, view national boundaries as obstacles, and see national governments as residues from the past whose only function is to facilitate the elites global operations as enthusiasts of a borderless world in which technocratic supranational structures would permanently supersede the ‘malign’ and ‘anachronistic’ influence of high politics.
The window dressing of interest rates and the store of value of USTs are a pony show and a decoy for the financial illiterate populace that fails to comprehend the anatomy of capital outside the box of MMT and its financial corruption. Even though the Fed is tightening in quantity terms, the BOJ has been printing the yen fast while UST supply is rapidly increasing.
The transmission link interest rates have with GDP is limited by the quantity and concentrations of liquidity that determines exchange rates, bond yields, etc., and policy that channels the disequilibrium of liquidity into existing assets (the rentiers class) versus the tangibility of productive measures (the workers class). Rate transmission is also limited by the aggregate length of credit maturity, i.e. US 30yr fixed rate mortgage versus 5yr fixed rate in the periphery. Slowing the US economy via interest rates in absence of systemic collapse is a geopolitical and geoeconomic phenomenon of architectural dollar hegemony.
The anatomy of capital has 3 primary dimensions:
1. The cost of risk and time
2. The quantity and concentrations of liquidity
3. The quality of capital allocation that increases the purchasing power of earnings—credit growth into productivity versus existing assets is fundamentally disinflationary.
The 3rd aspect is anti-hegemonic. Domestic manufacturing as a high percentage of domestic consumption is synonymous with economic sovereignty. This requires thousands of regional banks to lend to small and medium businesses locally. This also increases tax revenues to fund society because the income generated by the transnational corporations benefit from offshore tax havens.
If the private owners of the Fed continue to disenfranchise the economic sovereignty of middle-class American’s in pursuit of global hegemony, it should be no surprise that the independence of the Fed teeters on the brink of nationalization or decentralization that gives states autonomy over its money supply.
Thanks for this note. I have to think it over before I reply, and read some of your pieces. I have followed you so you are on my radar screen. What is your background, field of endeavor, driving interest?
“I think that compromising the Fed’s independence is a horrible idea”
—Ethan Harris
Please show me where the Fed’s independence is loyal to the Nation while its primary function is to recycle the excess savings of mercantile regimes abroad and send out mercenaries to defend their store of value.
The private owners of the Federal Reserve Bank are a global group of members who consider themselves to be International and, as such, have little need for national loyalty, view national boundaries as obstacles, and see national governments as residues from the past whose only function is to facilitate the elites global operations as enthusiasts of a borderless world in which technocratic supranational structures would permanently supersede the ‘malign’ and ‘anachronistic’ influence of high politics.
The window dressing of interest rates and the store of value of USTs are a pony show and a decoy for the financial illiterate populace that fails to comprehend the anatomy of capital outside the box of MMT and its financial corruption. Even though the Fed is tightening in quantity terms, the BOJ has been printing the yen fast while UST supply is rapidly increasing.
The transmission link interest rates have with GDP is limited by the quantity and concentrations of liquidity that determines exchange rates, bond yields, etc., and policy that channels the disequilibrium of liquidity into existing assets (the rentiers class) versus the tangibility of productive measures (the workers class). Rate transmission is also limited by the aggregate length of credit maturity, i.e. US 30yr fixed rate mortgage versus 5yr fixed rate in the periphery. Slowing the US economy via interest rates in absence of systemic collapse is a geopolitical and geoeconomic phenomenon of architectural dollar hegemony.
The anatomy of capital has 3 primary dimensions:
1. The cost of risk and time
2. The quantity and concentrations of liquidity
3. The quality of capital allocation that increases the purchasing power of earnings—credit growth into productivity versus existing assets is fundamentally disinflationary.
The 3rd aspect is anti-hegemonic. Domestic manufacturing as a high percentage of domestic consumption is synonymous with economic sovereignty. This requires thousands of regional banks to lend to small and medium businesses locally. This also increases tax revenues to fund society because the income generated by the transnational corporations benefit from offshore tax havens.
If the private owners of the Fed continue to disenfranchise the economic sovereignty of middle-class American’s in pursuit of global hegemony, it should be no surprise that the independence of the Fed teeters on the brink of nationalization or decentralization that gives states autonomy over its money supply.
—MS
Thanks for this note. I have to think it over before I reply, and read some of your pieces. I have followed you so you are on my radar screen. What is your background, field of endeavor, driving interest?
Thank you and I appreciate your interviews!
I keep a record of my thoughts on Telegram here: https://t.me/stoneweapon
(Self-employed design/manufacturer of building products in Ontario for 35 years.)
I find it difficult to quantify the Fed's relevance as an independent institution when
A) the private owners of the many central banks can increase liquidity, i.e. BOJ, that undermines the tightening of Fed policy.
B) government deficit spending that nullifies the disinflationary effect of higher rates.
The institutional capacity of the Fed should be in question when its owners can provide liquidity from its other banks.