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Judy Shelton Has the Votes

Senator Lisa Murkowski (R-Alaska) will now back Shelton giving the candidate 51 votes for the appointment.  

With that, Judy Shelton Heads for Confirmation to a Federal Reserve Seat.

“I’ve had an opportunity to talk to Judy Shelton and I’m going to be supporting her,” Murkowski told reporters Thursday afternoon, according to reports in various news outlets.

Shelton’s nomination had been stalled in the Senate even though the finance committee cleared her by a narrow party-line 13-12 vote in July. Several key Republicans had been wavering in their support, and it appeared for some time that the nomination would not clear before the current congressional session ended. 

At the contentious July hearing, senators grilled Shelton over her views on Fed independence, her support of the gold standard and her wavering over whether bank deposits should be insured.

Democratic senators accused Shelton of backpedaling from earlier statements she had made on those issues.

McConnell’s move drew an angry rebuke from Sen. Ron Wyden (D-Oregon), ranking member of the finance committee, who called it “an effort to sabotage what little economic recovery we have by installing an unqualified, political pick.”

“Her ideas are so wacky and outdated, giving her authority over the dollar would be like putting a medieval barber in charge of the” Centers for Disease Control, Wyden said in a statement. “Shelton’s views are so extreme, Senate Republicans have long refused to confirm her.”

Attack Dogs Blast Shelton

In a stunningly ignorant, yet hardly surprising op-ed, Steven Rattner says God Help Us if Judy Shelton Joins the Fed.

“Why do we need a central bank?” Ms. Shelton asked in a Wall Street Journal essay in 2009. She wants monetary policy set by the price of gold, a long-abandoned approach that would be akin to a Supreme Court justice embracing the Code of Hammurabi.

Anyone who questions the need for a Central Bank immediately has at least something on the ball.

The Fed has blown 3 consecutive economic bubbles of increasing amplitude. 

Diversity of Opinion

True diversity is not about race or sex, it's about opinions. 

Former fed Chair Janet Yellen was every bit a part of the good ol' boy network. 

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Instead of another "good ol' boy" group-think candidate, we will actually have diversity of opinion.

Imagine 

  • Imagine having a dollar backed by something, rather than nothing. 
  • Imagine having a 100% gold-back dollar so that FDIC would not even be needed. 

Neither of those will happen because Shelton will be ignored by the rest of the Fed.

However, as Fed governor, he views will at least get public airing. That's a start assuming she did not abandon he views on gold, just to get the appointment. 

God Help Us

For further discussion, please see my July 24, 2020 post Controversial Gold Advocate Advances for a Fed Appointment in which I mock Steven Rattner for his view "God Help Us if Judy Shelton Joins the Fed"

Rattner has things ass backward. God help us if we stay on the path we are on. 

Addendum

I was asked why FDIC would not be needed under a 100% Gold-Backed Dollar.

  1. Gold stored for safekeeping could not legally be lent out. To do so would constitute fraud.  
  2. A 100% gold-backed dollar with audits takes care of the safekeeping requirement.
  3. Gold lent out pays interest. It is not risk-free. If people want interest they take a risk of default.
  4. Banks make money out of charging a small safekeeping fee and lening gold they are authorized to lend. 
  5. Past bank failures were because banks lent out more gold than they had or took excessive risks. No one can or should guarantee loans anymore than governments can guarantee stock market investments. 
  6. If people want to protect against theft or bank fraud despite #1, private insurance, possibly part of the safekeeping fee, would take care of it. There is no need for government to get involved.

Mish