There’s a new effort to install a political hack as Fed Chairman.
A New Line of Attack on Fed Chair Jerome Powell
A dispute over the Fed’s renovation of its headquarters could provide the pretext to attempt the removal of Jerome Powell over interest-rate disagreements.
The Wall Street Journal reports White House Seizes on Fed Renovations as Opening to Oust Powell
Trump told reporters Friday he wasn’t planning to remove Powell, whom he named as Fed chair during his first term, but said he was doing “a terrible job,” and added “he’s costing our country a lot of money.”
The administration formalized its latest challenge Thursday with a letter from Russell Vought, Trump’s budget director. In it, he implied Powell either made false statements to Congress about the $2.5 billion renovation of three office buildings overlooking the National Mall in Washington or failed to comply with permitting rules around capital-area construction.
Trump simultaneously stacked the federal commission that must sign off on major construction projects in the capital with three White House advisers, including James Blair, a deputy chief of staff.
On Friday, Vought told reporters that both his office and the newly installed Trump advisers at the National Capital Planning Commission are “going to be asking very, very tough questions” about Powell’s recent statements and about cost overruns that are “horrifying.”
The Wall Street Journal reported two years ago about cost overruns on the building project. The issue gained political traction in June when Sen. Tim Scott (R., S.C.) pressed Powell about the expenses, including luxury features, during a congressional hearing. Powell disputed media accounts about certain high-gloss finishes, saying they weren’t part of the latest design plan.
“We are in a high-stakes moment in the history of the Federal Reserve,” said Peter Conti-Brown, a Fed scholar at the University of Pennsylvania. “It seems clear to me that the Trump administration, using various mechanisms, [has] now cooked up a post-hoc explanation for Powell’s removal.”
The renovation’s ballooning costs reflect a familiar pattern in Washington construction. Like many federal projects constrained by the capital’s height or other aesthetic restrictions, the Fed had to build expensive underground space instead of adding floors. Congress’s Capitol Visitor Center faced similar constraints and saw costs explode from an initial $71 million estimate to more than $600 million when it opened in 2008.
My Availability to Become the Next Fed Chair
In case you missed it, on July 9 I commented, I Officially Announce my Availability to Become the Next Fed Chair
I listed a 15-point plan. Here are the first five points.
Mish’s 15-Point Fed Plan
- Explain to the nation why we don’t need a Fed and how independent central banks have created boom-bust cycles of increasing amplitude over time. The main corollary is history shows the one thing worse than independent central banks is a central bank run by politicians, frequently ending in hyperinflation.
- Surround myself with qualified insiders who understand the Fed but also believe in the mission to end the Fed.
- Stop paying interest on reserves, phased in over 18 months.
- Wind down the Fed’s balance sheet totally in 2-3 years.
- Require that assets available on demand such as checking and savings accounts are truly available on demand. That means demand deposits are parked in overnight US treasuries. This would be phased in over two years. As a result, we would have genuine safekeeping banks.
Point three brought a question from a reader. But deposits are not reserves. Deposits are on bank balance sheets as liabilities.
We Don’t Need to Fix FDIC, We Need a Genuinely Safe Bank
On December 15, 2023, I commented We Don’t Need to Fix FDIC, We Need a Genuinely Safe Bank
Need for a Genuine Safekeeping Bank
A genuine safekeeping bank is one that takes deposits and parks the entire amount in short-term treasuries. It make no loans and there is never any risk.
Deposits would earn a fluctuating interest rate that is the Fed’s overnight rate minus a safekeeping fee that allows the safe bank to pay its bills.
There is no need for FDIC because there is no risk. Under this proposal, banks cannot borrow short and lend long. Nor can they speculate on future interest rates.
Q: Why Don’t We Have a Safekeeping Bank?
A: That’s easy. The Fed doesn’t want one.Peter Schiff created one and the Fed forced Schiff out. Caitlin Long, CEO and founder of Custodia Bank, wants to create one and the Fed said no.
See the Fed press release: Federal Reserve Board announces denial of application by Custodia Bank, Inc. to become a member of the Federal Reserve System
The Fed does not want competition because it wants to eventually force you at some later date into using its own allegedly safe Central Bank Digital currency.
Meanwhile, expect more Band-Aids.
Legalized Fraud
Silicon Valley Bank, Signature Bank, and First Republic Bank failed due to classic runs on the bank. The banks took customer deposits and speculated on long-term interest rates. When the Fed hiked rates more than expected, bank losses mounted, the banks became insolvent, and customers pulled deposits.
This is a classic example of a duration mismatch scheme that I consider legalized fraud. Money that was supposed to be available on demand was not available on demand.
One cannot legally lease an apartment to two different parties at the same time. Anyone who tried would be quickly arrested. This is in essence what these banks did by investing for years money supposedly available on demand.
Because Custodia Bank does not make loans and because it holds deposits in short term treasuries, a run on Custodia Bank would not cause the bank to fail.
The big irony is the Fed refused to grant FDIC to a bank operating on the safest possible policies but fails to monitor massive speculation (arguably outright fraud) on banks right under its nose.
Silicon Valley Bank Collapses, 93 Percent of Deposits Not Insured! What Now?
On March 10, 2023, I noted Silicon Valley Bank Collapses, 93 Percent of Deposits Not Insured! What Now?
Deposits Not Insured
Part of what made SVB unique is its client base—the vast majority of its customer’s accounts were too big for full FDIC insurance (though recent deposit flight probably reduced the share). Waiting on the FDIC to see how many uninsured deposits are left and if they can be made whole.
SVB took customer deposits and invested in long-term treasuries. When interest rates rose, a run on the bank was its death.
Under my scheme, banks would have to put demand deposits on overnight treasuries and no run would have happened. But it a run did happen, it would not have mattered at all.
This was the model of Peter Schiff and Caitlin Long. The Fed drove the former out of business and denied FDIC for Long’s Custodia Bank.
The irony is staggering. By parking funds in overnight treasuries, Custodia deserves unlimited FDIC because it isn’t needed at all.
Related Posts
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Credit Trump for pushing Canada closer to China.
July 10, 2025: Letters Show Trump Sticks With Ridiculous Definition of Reciprocal Tariffs
Let’s review Trump’s definition of reciprocal tariffs and his new announcements.
July 10, 2025: Canada Adds 70 Percent More Port Capacity to China to Escape Trump’s Tariffs
Credit Trump for pushing Canada closer to China.
Anyone for Mish’s Plan?
If so, please notify your representatives because the last thing we need is a central bank beholden to the whims of political charlatans.
Since late 2022 the Feds expenses have exceeded earnings. The operating loss in 2023 grew to $114B, its largest loss ever. The Fed’s interest expenses, which includes reserve balances at the Fed’s repo operations, were blamed. When expenses exceed earnings, the Fed forgoes remittances on their Treasury securities portfolio. The remittance revenue helps offset federal deficits. The Fed welshes on debts to finance their home renovation. Hello, Dave Ramsey. This is the reason behind the 2023 BTFP loan scheme, to drain repo with promises of future Fed rate cuts. Lower BTFP rates allowed hedge fund borrowers to arbitrage the stock market.
The Fed should be motivated to cut rates and lower expenses. But, the Fed can’t take on additional debt. The Fed realizes lower rates will spiral inflation, as happened in 2019. 10-year Treasury rates increased in 2018 due to matured Bonds from the 2008 mortgage crisis bailout. Another round of bailout Treasury Bonds came due in 2019. Which prompted Powell to pivot, so the Fed could repurchase matured Bonds at lower rates. An inflation spiral began in 2019, a year before the pandemic, which was conveniently blamed for the rise in prices.
In 2016, Janet Yellen pushed 10-year rates to the lows of the mortgage crisis, and kept rates suppressed until the election. These Bonds mature next year. If the Fed lowers rates prematurely, to repurchase these Treasuries, they will need additional liquidity in 2026. As what happened in 2020 when the pandemic hit. Powell’s monetary shenanigans in 2019 took 10-year Treasury yields to mortgage crisis lows. It then became necessary to drop rates into the basement when an actual crisis occurred. Resulting bank failures and extreme inflationary burdens could have been prevented. Powell should be fired for this reason.
If the Fed cuts rates in 2026, a rise in inflation can be attributed to tariffs and a Trump appointed Fed Chairman. Can the Fed suppress rates for a year, without adding the $1T to its balance sheet that happened in 2019. The Fed quietly QE’d $43B in Treasuries in May, about half of Powell’s monthly QE in 2019. Will Basset’s weekly breakfast with the Fed give him his orders, along with a side of bacon, to manipulate Treasury issuance, as Yellen accomplished in 2024, before the election.
so either way, within a year we’ll have ZIRP, tariffs on everything. that ought to go well.
The banks borrow to lend and borrow to repay. They need very little assets. The portion of financing the gov is too high. The pendulum should swing to the other side to finance the economy. Mish bank will open its doors in 2027.
MX gets 30% letter
EU gets 30% letter
Aug 1 gonna be interesting
(from the Financial Times)
The UBS “tariff fear gauge” has dropped to near absolute zero on both sides of the Atlantic.
It is reflecting the same stunning complacency visible on the Nasdaq index and in wafer-thin credit spreads, now even more compressed than the pre-Lehman extremes in 2008.
“Markets are looking through the tariffs, and we don’t think they should,” said Bhanu Baweja, the Swiss bank’s chief global strategist….
…Tariff trauma comes to a head in August, always the month of thinnest liquidity, and a time prone to violent moves in asset markets – Russia’s default in 1998, the US credit ‘heart attack’ in 2007, etc. This August has the added piquancy of a further drain in liquidity as the US Treasury rebuilds its depleted account at the Federal Reserve, taking roughly $120bn a month out of the US financial economy.
Do not expect the Fed to make life easy with galloping rate cuts. Tariffs hit US inflation with a four month lag. The first headline shocker will come in mid-August. The Adobe digital index already points to a coming surge in prices. UBS expects inflation to reach an annualised rate of almost 4pc over the autumn…
https://archive.is/QQZ8r#selection-3367.0-3375.135
Excellent article! Thank you for the reference…
Trump’s goal is to control the Fed. The last thing he would do is try to eliminate it.
that’s right !
Since Oct 2008 the Fed is out of whack. Eliminating the Fed is radical. The boom/bust during the 1870’s/1907 were much deeper. 20%/40% recessions. Stop its offensive threats to hollowed up people’s bank accounts to fund the gov, but keep its defensive capabilities to prevent out of control bank runs. The Fed as a regulator gain too much power. The Fed became a dictator !
A bank described by Mish is a good idea. Mish do you know why their banking license request was refused? What grounds did they use to reject it?
Why is the government paying for the very expensive renovations for a private banking cartel?
The government is not paying a dime for the renovations; the Fed’s capital budget is financed from the Fed’s operating revenues. And the Fed is only accountable to Congress, and not to Trump or his flunkies.
It’s responsible to only Congressional flunkies as it should be.
YES, absolutely the Federal Government is paying for the renovations.
The Federal Reserve generally runs a profit since it holds interest-bearing assets on its balance sheet. Expenses are deduced from the interest, and the resulting profits of the Federal Reserve are remitted to the U.S. Treasury by law.
To the extent those profits are squandered, the taxpayer IS on the hook.
P.S. In addition to questioning the cost of renovations, taxpayers should be questioning the much larger bank giveaway called “interest on reserves”.
Looking forward to the great “Turkey on the Potomac” experiment. I am sure the MAGA crowd will welcome high inflation as a Trumpian genius stroke designed to inflate away the federal debt.
Jerome Powell is just one vote on the Federal Reserve Board. He doesn’t decide interest rates, the majority vote of the overall Board does. Powell just sets speaking order, meeting dates, stuff like that. Replacing Powell has little effect as the regional banks determine who sits on the Board.
It’s normal however for the fed chair to build consensus. If you know of a powell vote when he went against the majority, let me know.
Throughout history, banking institutions have taken out dictators, monarchs, and political leaders of all stripes because they failed to respect their bankers and banking institutions.
Napoleon is a good example, as are many Popes, Kings of England and Czars of Russia.
Pissing off your banking systems leaders is not a good thing, especially when the politician is involved with expensive physical wars and trade wars that reduce or destroy economic activity.
Economic activity is slowing and prices are rising for basic materials and falling for farmers crops and our oil producers. Active drilling rig counts have fallen 10 weeks in a row.
Corporations are faced with untold billions in costs to do business in the U.S. and it is a competitive advantage to engage in markets outside Trumps maniacal tariff system.
As much as people hate on our banking system, turning against it is a massive mistake because if you destabilize it and turn it upside down I believe our leadership in the world will end.
Centralized banks are the only thing that can enforce sanctions against rogue nations.
Ending the Federal Reserve and destroying the dollar spells the end of our status as owner of the worlds reserve currency. Mish does not think so, but history tells us that banking allegiances change slowly at first, but then suddenly.
Singapore has become a vital banking center that is capturing trading volumes that challenge London and Hong Kong. It could easily become the center of world monetary transfers.
Trade in Asia has exploded as it modernizes and builds out its grid, highway system and infrastructure. It is booming like the US when we were building out our Interstate Highway system in the 50’s. They do not need us just as we no longer needed Great Britain or France as part of our supply chain.
If I were leading the world banking system, I’d tell Trump to pound sand for his failure to reign in our budgetary deficits…
Hamilton had it right. “Let Washington have the capitol, New York gets the banks”.
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Napoleon never pissed off his bankers. He even helped them by establishing the Banque de France which ensure a stable currency and liquidity for the banks. In the Middle Ages sovereigns often did piss off their bankers but that was long ago. What pissed of the Russian bankers was the Revolution much more than the Czar. What US bankers know is that they need the government more than the government needs them.
Perhaps you should do a quick read on Nathan Rothschild’s relationship with Napoleon? Nathan not only set Napoleon up at Waterloo and deprived him of vital financing before the battle, he profited greatly upon Napoleon/s defeat.
History does not repeat itself, but it sure as hell does rhyme!
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That he made banking enemies is true but to put it all up to Rothschild is a stretch. By that time Napoleon’s return had scared all of Europe and in the 100 days since he returned France dad reconstituted its army and its arms production. Rothchild did finance his enemies then but Napoleon was already on the way out. Rothchild just timed it to make the most money. It’s like today. I do read history too Frosty.
So your statement: ~ “Napoleon never pissed off his bankers. He even helped them by establishing the Banque de France which ensure a stable currency and liquidity for the banks.” has been researched a little bit and replaced. I could say it was bullshit!
At least you looked it up ~ and, gained some perspective… Lets be clear…
I want the banks on “OUR SIDE”.
If Trump drives economic activity imports to another standstill. Global trade will be denominated in other currencies. Banks go where the money goes, it’s that simple.
If the worlds dollar surpluses are not created through trade imbalances, those surplus dollars will not be invested in our debt and our interest rates will have to rise. Trump does not get that.
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bingo.
john law was my favorite huckster in world history. helped bankrupt the french empire. not all bad.
American banks are owned and controlled by the wealthiest people in the world. Through control of the banks, they control most of the large corporations (including media) of the nation. They are the true power, not the politicians.
This is correct and in many cases, painfully true. However, our society is highly developed and relatively stable. Without strong banking systems society is prone to collapse.
It’s not working Mr President.
Republicans should be flooding the airwaves with “real families” that can’t afford a home and start a family due to high interest rates. Every Fox show should feature interviews with these families. Every commercial on every major network should contrast The Powell Palace with everyday Americans that can never afford a home.
Powell might not fold for Trump but the Fed can be persuaded by people who are affected by their policies.
You can’t have it both ways. The administration and Rs in congress are saying how good the economy is and raving about stock market highs. That environment is not one in which you cut rates.
if interest rates decline, home prices will rise. there’s no winning here for “real families”. but you’re right, flooding the airwaves will work because MAGA voters are idiots.
Yes, you’re right.
Do it.
No, not double down. no. no.
Triple down. Or its better, quadruple down.
I’m taking long on gold.
Thank you for your attention to this matter.
The Fed is a lender of last resort. Interest rates will be lower in Q3/Q4 2025 and
in Q1/Q2 2026 until JP retirement. Point #3 is your best. Interest on reserves will be lower until Q2 2026 AND thereafter. The pendulum is swinging. Instead of hollowing people’s bank accounts and financing the gov ==> the banks will finance the private sectors. Flexibility: Short Selling will be allowed to save the banks in emergencies, but the money will have to return to the people, paying them interest. Lower rates, tariffs, higher tax collection and a smaller gov will fill the gov coffer…but first we have to dethrone NVDA from $4T.
The Federal triangle was built between 1927 and 1938. DC, under Trump, is overbuilt.
Wow. Bizarre stunt unworthy of parody, to topple one of the most critical systems on earth. And the acceptance of that, regardless of Powell’s merit, is dazzling to me. It means social media conspiracy narratives are near taking over hearts and minds.
Running the Fed is like turning a vast aircraft carrier here and there amidst shifting sea currents ensuring there will some level of error. The comprehension of this I am seeing in the public (and of the nature of complex regulation itself), next to the pseudo-aggrieved demonizing and resentment I see here, saddens me deeply. I see little prospect, if this posturing is widespread, of this ship surviving long. These are central, critical systems being tampered with so errantly.
The theme under Trump it to attack all of the safeguards of our economic system.
He has gutted the Securities and Exchange Commission, EPA, BLM, National Park System, attacked our Judicial System, stacked the Supreme Court with sycophants, demonized the FBI, CIA and greater Intelligence community and threatened NATO, Canada and Greenlands sovereignty.
Now he is attacking our Central Bank and our banking system.
The clown that bankrupted a casino thinks he knows central banking? Does HE?
The Fed’s in general, kept us relatively stable in an ocean of nations with weak banking systems and regulation. Sure the Fed blows bubbles and is the source of inflation. It enabled the housing crisis where millions lost their homes to banks and massive landlord agencies. But it has worked well and their have only been three home equity crashes in the history of our nation and, it is OUR system.
Break it, destroy it, “End the Fed” without a comprehensive plan and someone else will step into the vacuum.
My bet is that it will be based in Singapore and not New York. Nor will it be regulated by Washington. If the banking system is independent and based in Singapore just how would the U.S. impose sanctions on Russian oil or grains? Iran could not be sanctioned. The Swift System in the hands of Singapore? Think kiddies!!!
End the Fed at our peril as bankers have been known to shift their allegiances rather quickly to the growing areas of the world and leave the stagnant fallen giants to their own devices.
Trump is a malicious idiot…
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it is the 3rd us central bank. i don’t think the world ends if the fed goes away. but the chance this will happen is quite slim, imho.
Powell lowered rates right before the election then hiked them back up afterwards to apparently help Kamala win. He is a political stooge and needs replaced. The Fed Chair is s upposed to be non political
You presume his motivation was political.
I assume otherwise.
And if Trump was not being a ass with tariffs, the Fed would be cutting now.
As the owner of a farm, I can not plant corn, wheat or soy under Trump and expect to make a profit.
The tariffs have crushed our foreign markets and Russia is becoming the global leader along with increasing production in Australia, Brazil, Argentina and many others.
Most of my neighbors voted for Trump and still repeat whatever Fox tells them. But they also see what I am doing and in private, display their discontent with crashing margins on our crops. AGAIN!
So you are willing to give away our industrial base so you can sell soybeans to China?
How will letting our farmers go bankrupt protect our industrial base?
In addition, Trump is placing 50% tariffs on necessary imports of steel, aluminum, and copper that must be paid by our industrial base that uses them. How will that improve our competitive position?
As long as you can make money out of you don’t care so stop with the crocodile tears.
What a surprise. As always, you never answer my questions. Instead you just say something else that is stupid.
Let’s try again, shall we.
How will letting our farmers go bankrupt protect our industrial base?
In addition, Trump is placing 50% tariffs on necessary imports of steel, aluminum, and copper that must be paid by our industrial base that uses them. How will that improve our competitive position?
I await your answers. Though my expectations are low. What will your next stupid response be? Or perhaps you will finally surprise me with an intelligent answer to my questions.
“How will letting our farmers go bankrupt protect our industrial base?”
You’re doing the exact same thing as Mish above, when he said:
“You presume his motivation was political. I assume otherwise.”
You both are making big assumptions / presumptions, both of which all by themselves are devoid of facts.
Mike takes no time to explain what OVERWHELMING evidence supported the Fed dropping 50 BP, and you’re definitely assuming.
Come back next spring and give us the report that shows there’s been a big spike in farmer bankruptcies that were definitively tied to Trump’s tariffs.
And IF (granted it’s a big one) Trump is able to get the 250% tariffs on dairy we export to Canda or “want to export” to Canada eliminated or significantly reduced, let’s ask the US dairy farmers what they think about Trump’s tariff negotiating skills.
Now, that’s what you call an assumption on my part, right?
Do you see how, like yours, it’s devoid of any factual basis?
What might happen isn’t guaranteed to happen.
Hmmm, Are Doug78 and BenW the same person?
Farmers are not going to go bankrupt. As a group, we give them way too much money for this to happen.
And the BBB added all sorts of enhanced protections to farmers income, crop insurance premium support & estate taxation upon death.
Trump is trying to build a better down the road competitive position for our industrial base. He’s deregulating, offering incentives, & partnering with production. And of course, he’s gone hog wild with tariffs.
Until inflation spirals out of control, I’m going to give him the benefit of the doubt. And the good news for all the Trump haters is if this happens prior to the mid-terms, then Trump will singlehandedly give Congress back to the Dems and create a recession which will doom his legacy forever.
And if all that happens, then I’ll be right there with you calling for his impeachment.
Time will tell as we say.
In the first quarter of 2025, there have been 259 farm bankruptcy filings in the United States, according to the University of Arkansas System Division of Agriculture. This figure exceeds the total number of filings for all of 2024.
Correct again as farmers are taking it on the chin for the second time under trump. There is no sign that things will get better in time to save thousands of American farms from bankruptcy.
These are multi-generational farms that have absorbed other failed farms and tried everything to stay afloat.
Painful to watch my neighbors failing at what they love.
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I doubt he can answer the question.
My response is that no one wins a trade war. Not farmers, not workers, not industrial firms.
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Yer funny!
Our industrial base is strong and the mess trump created during covid has many companies already moving production here. The free market was working without trump’s frantic antics!
I also own industrial property and all of it is fully leased with machine shops and other enterprises that make all sorts of products!
It was insane for Trump to start a trade war before securing inventories of Rare Earths and stocks primary metals! Our military is likely to run out of its advanced weaponry as a result.
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Wait, are you saying that in short order America’s farmers are going to be forced to stop planting corn, wheat or soy? Or is it because your operation is too small which would be an entirely different set of economic problems for you potentially.
Just because you ASSUME something, Mike, doesn’t mean it’s true.
Not even close. The jobs reports for July & August of 2024 simply were NOT bad enough for the Fed to drop 50 BP. That’s a huge stretch into the realm of it being a political decision really starts to carry water.
Then, he went ahead and cut 50 more BP in Nov & Dec when it was CLEAR that he didn’t need to do so.
Those are as close to facts & not assumptions as we can arrive at.
of course the FED is political. that’s been obvious for a century. anyone who thinks otherwise is very naive.
Powell hates Trump just like Reese hate Clark in the WNBA. To act like that’s not the case is laughable.
Legit.
Powell is too much of a gentleman but he should ask taco about the epstein files?
Taco is a real piece of work.
Powel might be in them if it was truly a honeytrap operation. Someone like Powel would be a top target. Doesn’t mean he was involved of course but the “gentleman” qualified doesn’t mean anything either.
thank you Mish?
Utah becomes the first US state to allow consumers the freedom to install rooftop/balcony solar without the regulation that doubles its cost compared to Germany.
You are in Germany?
$2.5B to renovate 3 buildings on The Mall? WTF?
The 71K seat Mercedes Benz stadium only cost $1.5B.
I can get on board with using this as leverage to oust the guy who was AT LEAST 12 months late raising interest rates, dropped the FFR 100 BPs weeks before the 2024 election and now appears to think those of the Fed’s 22K employees who are lucky enough to work in DC should do so in the Taj Mahal.
People that’s $1M per Fed employee working in DC. That’s CRAZY!
Yes, JP must go. Resign already, dude. And while you’re at it, close the doors on the Fed, the biggest criminal enterprise on earth.
Prior to 2008, the Fed didn’t pay interest on reserves. In 2023 alone the Fed paid out
$116.3 billion in interest on reserve balances and $62.4 billion related to interest expense on securities sold under agreements to repurchase agreements.
That’s almost $180B lining the pockets of big banks & hedge funds, and it’s 4.4X the total 2025 budget of the State of GA.
And where did most of that money come from these banks held on reserve with the Fed?
QE: AKA HELICOPTER MONEY CREATED OUT OF THIN AIR BY A COMPUTER KEY STROKE
bingo. the NYFED where the action happens is privately owned by the NYC banks. ti’s the greatest con game. even smart fellas like Mish don’t seem to understand the real game. the book, “the creature of jekyll island” tells it in a very understandable way. i always tip my hat when i walk by the NYFED every few weeks on my flaneuring around gotham.
I don’t know that the Fed should be completely eliminated, but it’s powers certainly need to be vastly scaled back.
We should NOT be paying interest on reserves. That’s just crazy. And allowing the Fed to muck with the yield curve by buying T-Bills to 30Y bonds is idiotic. 3YN and below with a reasonable cap of say $1T on its sheet would go a long way towards getting asset prices back in balance & forcing Congress into financial discipline. The FMOC should not be made up entirely by Fed bank CEOs. Half at most.
I don’t know that the answer is, but I sure as hell know the Modern Monetary Theory-based method that the Fed has adopted with managing the US economy is nothing more than an ASSET BUBBLE CREATING MACHINE that primarily helps the wealthy.
agree. the vast majority of usa would be much better off without a privately owned fed ripping everyone but a few banks off. the treasury can easily take over the functions.
$2.5B / 22,000 employees = $113,6xx
Opps, my bad! Typed it in wrong. Thanks!
Wait, my bad again. There are only ~2,500 Fed employees in DC. If you re-read my sentence, I’m alluding to that, but I should have stated the 2,500 number.
$2.5B / 2,500 = ~ 1M
Sorry for not making that clear.
Trump shows off his handpicked Cabinet Room decorations”put it on their tab” lmao
https://www.usatoday.com/story/news/politics/2025/07/08/trump-redecorates-white-house-cabinet-room/84511386007/
Looks like it was decorated by a 76-year old woman who retired to Myrtle Beach and carries a small dog in her handbag
the NYFED is privately owned by the NYC bankers. it is where the real action is. the FED in DC is the long con to make it look like it works for the people. you might as well just let federal express or walmart or mcdonald’s the power to print USD.
– Need for a Genuine Safekeeping Bank. > Do we ever, and have we ever. Excellent Read Mish!
– Q: Why Don’t We Have a Safekeeping Bank? > Who do you feel, is one of the more responsible people(s), within “Our Current” Administration or tied hard within it, and has that sort of command control? If there even is one I suppose?
– A: That’s easy. The Fed doesn’t want one. > Greed, as this will certainly help create, as you said, the “Pathway” to a CBDC, which is the “Treasure” of the Elites, Connected, and World Bank type figures.
– Meanwhile, expect more Band-Aids. > Why wait? Can’t we break up a piece of the “Treasure Seekers” large enough to disrupt this game plan if you will? Is there a big enough contingent of supporters (Inside) to stop this from occurring perhaps, or damage its attempts via doing? What exactly? If not then what?
>> I look at what was Reported out of DOGE, and the sheer misuse of Funds meant for entirety different things in some cases. I understand some of these issues have been resolved, but by Law is the real question isn’t it? It would be nice to know how “Vulnerable” we actually are to a “CBDC”
>>> “Mish” In Your Opinion, is this train pretty close to leaving the station, and it’s possibly just a matter of time? Again IN Your Opinion, if so and any attempts are futile, how fast do you feel it will take place? More directly, will there be time to pull a large amount of cash out, or they will set limits, which can easily be accomplished at that point…
I very much respect your opinion, and “Thank You” in advance, if you do get the chance to respond.
Stu
I forgot to ask as well, will “Safety Deposit Boxes” be Safe? IYO
Not sure I understand the question. By train leaving the station do you mean towards a safekeeping bank eventually?
If so, yes.
safekeeping banks exist. they are vaults at various places around the globe. or home safes. with gold and silver money.
it’s a distraction story just like the fentanyl coming in from Canada
extra points for him being the guy who can’t stop adding gold trim to the oval office
This isn’t a distraction, but rather a very real possibility IMO. You could be correct, but I will prepare otherwise.
Knowing Trump, and the fact that it’s not His House, despite what some may think, wouldn’t you think that Trump would use “Fake Gold” JS…
I don’t think Chairman Powell will step down. I don’t think the other Fed board members will let him step down. Stepping down would give away money and power, the two highly desired prizes for bureaucrats.