Posted on 07/25/2018 4:25:08 AM PDT by Mechanicos
- President Trump sharply criticized the Federal Reserve this week, saying interest rate increases are hurting the economy.
- Trump will have the opportunity to fashion the central bank in the image he would like as he has four vacancies to fill on the board of governors.
(Excerpt) Read more at cnbc.com ...
Holy crap buy Gold if he does this.
It was tried during the 1970s under Nixon and it was a catastrophe.
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OBAMA GAVE RHAM EMANUEL TWO KEY JOBS Soon as they occupied the WH, Obama placed his COS Rahm Emanuel in control of the US Dept of the Treasury (oversees the IRS).
PAUSE TO REFLECT First-term Obama had tight control of Treasury; Obama calculatedly placed his then-COS Rahm Emanuel in a dual role.......in the WH and at Treasury. Obama had a stranglehold on Treasury via COS Rahm Emanuel's dual role
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THE SMOKING GUN---WSJ REPORT--On Jan 20, 2009 Timothy Geithner was appointed Obama's Secy of the Treasury. But within three weeks, the Obama White House tightened its grip on Treasury. Obama put his COS, Rahm Emanuel, in charge of Treasury---Rahm Emanuel's dual role was an unusual move.
When he got to Treasury, WH COS Rahm Emanuel was so involved in the inner workings that the phrase "Rahm wants it" had become an unofficial mantra among subservient govt staffers, prostrate in obeisance, scurrying to accede to Rahm's wishes, according to Treasury government officials. Reported by WSJ / 05/31/09
More here: http://online.wsj.com/article/SB124113406528875137.html
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Pres Trump needs to make an inquiry to the US Dept of the Treasury to ask what RAHM AND Obama were doing in the US Treasury after Obama got elected.
Treasury prolly HAS a huge Rahm/Obama paper trail. One can get awfully rich awfully fast knowing the Fed's Treasury moves in advance.
But the Iran connection could prove to be even more interesting considering the hundreds of millions Obama secretly gave to Iran.
Follow the money. Some over reaching judge will try to stop this.
On 23Jan18 Trump hung a portrait of Andrew Jackson in the oval office.
It was tried during the 1970s under Nixon and it was a catastrophe.
The dollar has enough looming long-term problems as it is. Forcing below-market rates will give the FED no place to go in the next recession, and will bring on inflation, too.
One nit--although Nixon jawboned the FED, the real problem in the 70's came later, when Carter pushed his extremely compliant Fed Chairman to keep interest rates below inflation in the years of accelerating inflation. He wanted a booming economy during his re-election campaign.
As it turned out, inflation got really out of hand, and even Carter realized he had to stop it. So, he appointed Volcker, who clamped down with 18% T-Bill rates and 15% T-Bonds, and Reagan got elected.
After two years of high rates, they were able to start cutting again, and the intergalactic bull market of the 80's and 90's was born.
Nixon's real economic faux pas was trying price controls.
So what?
The President can legally fill vacancies at the Federal Reserve.
The President knows that overaggressive interest rate increases can wreck America’s economic recovery.
Since we do NOT have runaway inflation, the President will probably pick Fed governors who will “follow” interest rate movements — rather than trying to “drive” them.
That sounds good to me!
Trump needs a big vest.
The Board of Governors don't determine interest rates, the Fed Open Market Committee does.
Unlimited cash is probably the reason Rahm walked away with the 2011 Chicago Mayoral election. When I try to explain this to the uninformed they respond with disbelief. They claim Rahm was never head of the Treasury.
Rahm’s days are numbered, he and Madigan’s hands will be tied in this upcoming election and Illinoissians are still spinning from the festering property tax wound that the fed tax cut tore wide open.
Almost everyday is Christmas lately.
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Yes, but the Board of Governors are all members of the FOMC, and they are the people the president can appoint.
You got tht right. I remember it so well.....Rham SUDDENLY remembered he REALLY REALLY wanted to be Mayor.
So he announced his candidacy with the GOOD news that he had raised $10 million dollars in JUST WEEKS.
(cue laugh machine).
After going off the gold standard.
Johnson funded the Vietnam war, a man to the moon and the Great Society leaving a financial mess.
Price controls were a real scam, no salary raises but manufacturers/merchants just changed the names of their products periodically to raise prices. Gold prices zoomed.
Wasnt it illegal to own more than small amounts of gold too?
And don't forget price controls on gasoline, made from imported oil.
With the Fed manipulating supply and price of money, there is no free-market rate of interest, i.e., a rate set by market forces.
Elections have consequences.
And the “members” of the Federal Open Market Committee are...
FEDERAL RESERVE GOVERNORS!
So, IMHO, a “distinction” without a “difference”.
FEDERAL RESERVE GOVERNORS!
Plus the president of the New York Fed and the presidents of four other Fed Banks. And unlike what the article says, none of the Fed bank presidents are presidential appointees.
Regardless of who appointed them, the members of the Fed board will tend to vote the way that they think is best. If they believe interest rates should go up then they'll vote that way.
I remember Mayor Daley’s long time chauffeur getting shot and killed while washing his car early in the morning the day after his retirement but I can’t remember if that was before Daley decided not to run again or after.
Chicago politics is a messy business.
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