THE PROBLEM AT THE FEDERAL RESERVE: COLOR OVER COMPETENCE
The fundamental truth about the privately-owned Federal Reserve…
Imagine the decision-making powerhouse if you could use affirmative action to staff the Fed with queer black females.
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Fed tackles inflation with its most diverse leadership ever When Diane Swonk first attended the Federal Reserve’s annual economic conference in Jackson Hole in the late 1990s, there was a happy hour for women who attended the event. It barely filled a single table. Now, the “Women at Jackson Hole” happy hour draws dozens of female economists and high-level decision-makers, from the United States and overseas. “I’m just glad that now there’s a line for the ladies’ room,” said Swonk, a longtime Fed watcher who is chief economist for the accounting giant KPMG. [OCS: I am unaware of any economic theory containing color, penises, and vaginas in equations or a decision matrix.] It’s not just at Jackson Hole but also in the Fed’s boardroom where its leadership has become its most diverse ever. There are more female, Black and openly gay officials contributing to the central bank’s interest-rate decisions than at any time in its 109-year history. Many are also far less wealthy than the officials they have replaced. [OCS: Selecting Federal Reserve leaders by their intersectional identities does not produce better decisions as each of these individuals tends to look through the prism of their own identity and skew decision-making towards pandering to that identity. We cannot run an economy based on the poorest and most disadvantaged but on those who are the best and brightest – with a rising tide lifting all boats. As for being less wealthy, it is a temporary condition remedied by trades on insider information and access to investments not available to the rest of us. With financial institutions paying outsize speaking fees, first-class expenses, and gratuities for a canned dose of economic doublespeak.] Over time, economists say, a wider range of voices will deepen the Fed’s perspective as it weighs the consequences of raising or lowering rates. It may also help diversify a profession that historically hasn’t been seen as particularly welcoming to women and minorities. “Broadly, that’s helpful,” said William English, a former senior economist at the Fed who teaches at the Yale School of Management. “There’s evidence that diverse groups make better decisions.” <Source> [OCS: Competence and understanding drive better decisions, not diversity and posturing.] |
It's not magic...
Look for rates to be raised between 75-basis points and 100-basis points in the next Fed session. Or if they are more aggressive between 125-basis points and 150-basis points. The next meeting will be held on September 20-21 and is likely to be influenced by the upcoming midterm elections on November 8. 2022.
Bottom line…
Unfortunately, politicians nominate individuals to pander to their core constituencies, with competence an afterthought as an unexpected bonus.
Our economy is driven by supply and demand -- and the classic definition of inflation is too much money chasing too few goods.
We have a supply problem.
Yet you do not hear the Fed screaming about the amount of money being artificially created and pumped into the economy by profligate congressional spending, primarily targeted at special interests who can provide campaign funding and support.
Nor did they say much about paying extended unemployment benefits and Covid relief payments in excess of a worker’s wages. Why work to produce goods and offer services when you can take a government-paid vacation?
I heard nothing about the unions that were bolixing up the supply chains. Or the government killing the energy sector.
So why are the Fed asswipes hiking rates to curtail demand when they should be curtailing spending and lowering taxes to increase supply?
Simple answer: they are primarily progressive communist democrats who are isolated and immune from the consequences of their actions. And, of course, they are owned by financial institutions that profit from inflation and their ability to buy distressed assets with cheap inflationary dollars.
I cannot remember when the Fed told the American public the truth: inflation is another tax on the consumer as their purchasing power declines. Or a more elemental truth that somebody always pays the debt – if not the borrower, then the creditor, and in the final analysis, the consumer/taxpayer.
As for global affairs, it is our sanctions causing Europe’s energy crisis, and it will be the American taxpayer who foots the bill. Why are we sending billions of dollars to corrupt Oligarchs in Ukraine, one of the most corrupt nations outside of Africa?
By the way, can you name another country that taxes its citizens to ship free money to other nations, even those hostile to America? And before you say China, they demand collateral and foreclose on unpaid loans!
The idea we need a woman, a gay person, a trans person, and a pedophile to generate effective monetary policy is ludicrous and insane.
We are so screwed.
-- Steve
“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words
“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw
“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”
“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS "The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius “A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell “Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar “Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS