Yesterday, former New York Fed president William Dudley wrote a Bloomberg Op-Ed calling Trump’s Reelection a “Threat to the U.S. and Global Economy“
Today, former Fed official Larry Summers blasted Dudley.
Worst Case of Trump Derangement in the Financial World
Least Responsible Statement in Decades
MarketWatch reports Lawrence Summers slams former top Fed official Dudley for essay on Trump
The fallout from former New York Fed President William Dudley’s op-ed on President Donald Trump continued Wednesday with former Treasury Secretary Lawrence Summers saying the column “might be the least-responsible statement by a former financial official in decades.”
Adam Posen, the president of the Peterson Institute for International Economics, and a former central banker at the Bank of England, said Dudley’s column was “horribly mistaken.” “It feeds conspiracy and it was totally irresponsible to talk that way,” he said. Fed officials will likely react by circling the wagons and become disciplined in their speeches, Posen said.
Minneapolis Fed President Neel Kashkari, in an interview with NPR prior to Dudley’s essay, said that when a central bank plays politics “it leads to really bad outcomes over the long run for the economy.
I have been accused of TDS as well. The charge is laughable. I have been an anti-war, free-trade advocate forever. My blasts of Trump have generally been in those areas.
On the positive side, Trump made two good choices for the Supreme Court That’s something I highly doubt would have happened had Hillary won. And I also believe she is an even bigger warmonger than Trump.
Hillary was the “genius” behind the assassination of Muammar Al Gaddafi with disastrous consequences for Libya. She supported a no fly zone over Syria which could have led to confrontation with Russia, and she had the backing of John McCain, another rabid warmonger.
Clueless Fed, Clueless Trump
Trump repeated his claim today that the Fed is clueless.
Trump is correct. The Fed blew three consecutive economic bubbles. The third one has not popped yet.
But the one thing worse than having an independent body set monetary policy is having a government strongman take control.
History shows that bad things happen when the latter occurs. The result is often hyperinflation.
Get Rid of the Wizards
I propose we end the Fed and have a 100% gold-backed dollar.
The market can set interest rates, not a group of economic wizards, nor the President, nor Congress.
Mike “Mish” Shedlock
IS THE FEDERAL RESERVE OR CHINA THE ENEMY OF THE UNITED STATES ??
How is the Fed being used to embezzle money from government for the benefit of Wall Street bankers ?
Answer: https://thedailycoin.org/2018/08/16/a-look-at-the-federal-reserve-through-a-different-lens/.
How is the embezzled money used to fund war-mongering, chaos, and oppression throughout the world ? The foreign policy of the US is established by Wall Street—not DC. Wall Street used their crony Allen Dulles to establish the CIA to conceal their war-mongering behind ‘national security.’
Answer: https://thedailycoin.org/2019/07/10/looking-at-the-imf-and-world-bank-through-the-eyes-of-a-wall-street-economist/.
Is this the same future Wall Street has planned for the United States ??
Answer: YES. Ref. Douglas Valentine, CIA AS ORGANIZED CRIME; John Perkins, CONFESSION OF ECONOMIC HIT MAN.
What can China do to the U.S. ?
ANSWER: They can withhold shipments to Walmart. Or sell trillions of US securities.
“I propose we end the Fed and have a 100% gold-backed dollar.”
BOE’s Carney suggested a Libra-like digital currency against which other currencies could be devalued.
FED will f*@k you up, Homes! They’re packing.
I wouldn’t trust the market to set interest rates anymore in the era of Putin, Kim Jong Un and others. Hackers can easily be employed to manipulate open markets with fake money from central banks in other countries. Mish you may want to go back to early 1970s but for a whole host of reasons that world no longer exists. I would be interested to hear your proposal on how the market would set interest rates. Do you think it wouldn’t happen electronically ?
By the way, what I’m really saying is we all live in a manipulated world. But who do you want it manipulated by. A market-set interest rate would wreak havoc from day to day. I actually think the opposite. The government should set a “final” interest rate – something that is a fair balance between spenders and savers – say 3% or 3.5% – and dissolve the Fed. This would bring an end to bubbles as well as the manipulators could no longer rely on playing the casino to see what the rate change might be. The biggest problem with markets now isn’t that rates are set by whatever body or market. The problem is that rates are constantly changing for no real reason. The economy would settle into a normal equilibrium with no bubbles for a balanced fixed rate.
You should check under the bed – there may be a Red hiding there.
I don’t mean to be rude but you are borderline insane if you think that it would even cross the minds of either Putin or Kim to manipulate interest rates. For starters Putin has no beef with the world – he’s very happy watching the US implode and accumulating gold while it’s happening. As for Kim, they still use rotary telephones and carrier pigeons over in NK. They couldn’t even spell the word Internet over there. Even allowing for an attempt there is simply no way they’d be able to do it. Do you have any idea how deep and liquid the ST rates market is?
Your insane if you think they wouldnt try. The markets wouldnt be liquid if not for Fed. Liquidity dries up in a free market.
“I propose we end the Fed and have a 100% gold-backed dollar.”
Why? Gold has never stopped the business cycle, and it’s not the source of wealth for any country. Also, the market sets all but short-term rates, and ending the Fed will not stop govt corruption, which is the source of the problem.
https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/until-we-understand-the-real-wealth-of-a-nation-progress-cannot-be-achieved/
It’s none too wise to argue a non-elected body should interfere in any way to favour or hinder any Presidential candidate. What right does the Fed have to do that?
Not satisfied with fooling around with the price of money should they now vet Presidents?
Where will this idiocy stop?
Dudley should have played the policies, not the man. As soon as a name is mentioned it goes too far in this case. If he’d played the policies, not the man, everyone would have understood without risking any Fed independence there might still be.
‘History shows that bad things happen when the latter occurs. The result is often hyperinflation.’
Every one is howling that how that HYPER INFLATION is on the way, after the next accomodative policies of Fed=+CBERs
HOW?
BOJ is trying for the same goal just for the ‘inflation’ over 2 decades! ECB same since 2015 or even before. But now they have 1& trillions NIRP!
Fed is trying boost the inflation since ’09 and going no where!
Public debt may be can can be kicked down with more QEs +ZRP
But who is address the PRIVATE DEBT? DEBT jubilee!?
Student loans 1.5 T, Corp debt 1.3 T, Household debt over 1 T, auto loans 1 !
First de-leveraging DEFLATION first and then may be stagflation or hyper inflation NOT before D2!
On a point Mish made, why can’t short term rates be set by the market? This does seem like the best way as the Fed isn’t very good at it and politicians surely wouldn’t be any better. Mish, can you point to to something on how this might work? with or without 100% gold backing?
LIBOR, Euribor, as an template?
Please name all the wars Trump has started in the last three years as POTUS.
Heck, he doesn’t even brag he is good at killing people.
“And I also believe she is an even bigger warmonger than Trump.”
The MSM should be on alert. Meddling in our elections. But then by an agency which has actual effects.
The presidential election cycle has the strongest correlation with recessions/booms of any identifiable variable.
That’s nice, Larry
Now, about that photo of you and Epstein …
Let’s not go too low (or detailed), how about what he said about women while president of Harvard, which I am sure he got on merit?
The “TDS” accusation from the die-hard Trump supporters is just as primitive as the “you’re a nazi” from the left.
It illustrates how society is becoming more and more polarised by people who are either too stupid or entrenched in their political dogmas to rationally look at the facts and debate accordingly.
I try to debate liberals all the time, but they won’t. Recently I got one going as he was walking away by telling him: “liberals will never debate me because they have no facts or evidence to back up their opinions”. That got him going, but all he had was opinions, no facts or evidence.