Presidential Search Underway
Dear Presidential Search Committee
I respectfully submit my name for the opening. I am uniquely qualified for the job as my resume shows. For starters I will bring much needed diversity to the position of president.
Diversity of Thought
By diversity, I do not mean race or color. That is not what the Fed lacks. Rather, the Fed lacks diversity of thought.
Regardless of race or color, the Fed presidents all believe to varying degrees in the same useless economic models including the Phillip’s Curve and the importance of inflation expectations both of which have proven to be useless.
Qualifications
On the surface, it may seem that I am missing a key qualification, notably “Demonstrated executive leadership of 25+ years and managerial ability with a track record of people management for a sizable and diverse organization.“
I assure you my lack of experience in this area will prove to be a plus rather than a minus. I will explain why momentarily.
First let’s discuss the current group-think good ole boys network that exists at the Fed.
Bubbles, Bubbles, Bubbles
The Fed has blown three major economic bubbles in succession each of increasing amplitude.
These bubbles are obvious to anyone outside the Keynesian and Monetarist claptrap group-think at the Fed.
The motto appears to be if it doesn’t work, do more of it until it works. Then when it finally does work (as with inflation), the Fed presidents insist it is all transitory.
To not upset the stock market, the Fed sticks with QE targets that clearly add to inflation despite the Fed admitting (finally), that inflation is a problem.
Inflation Targets
Let’s step back a bit with a spotlight on inflation targets. The Fed has never explained them. Rather it hides behind an alleged dual mandate of price stability.
It seems the Fed does not even understand the word “stability” because no one in the US in their right mind believes prices are stable.
Nor has the Fed ever justified why stable is 2%, not 1%, or better yet 0%.
Purposeful inflation is purposeful theft.
The Bank of International Settlements (BIS), commented on the Historical Perspective on CPI Deflations.
Except in asset bubble deflations, like the Fed has blown again, the BIS concluded “Deflation may actually boost output. Lower prices increase real incomes and wealth. And they may also make export goods more competitive.“
It takes persistent group-think training to believe routine CPI deflation is a threat as opposed to a benefit.
I pledge to break that group-think mold.
Economic Wizards
The economic wizards at the Fed cannot set the price of money any better than they can set the price of orange juice.
The Fed is nothing but a group of Soviet-style central planners who actually believe they can successfully set the price of money.
Curiously, setting the price of orange juice is probably easier. Regardless, the Fed cannot possibly do better than the markets at setting or maintaining the price of anything.
Importantly, none of the Fed wizards has ever spotted an economic bubble in real time. Nor do any of the Wizards even take well established inflationary bubbles into their useless models of inflation.
Real Interest Rates Hit New Record Low as Home Prices Hit New Record High
I noted in September that Real Interest Rates Hit New Record Low as Home Prices Hit New Record High.
Clearly that chart represents massive inflation but the group-think wizards were all trained to believe something else.
First Step – Fire Nearly Everyone
With that, let’s return to the needless requirement or “25+ years and managerial ability”.
That requirement is unnecessary because my first step will be to fire nearly everyone.
None of the studies or surveys Fed employees are working on are worth the paper they are printed on.
The same applies to the totally useless Beige Book.
Actually, the Beige book is less than useless because it gives fake wizards reasons to believe they can steer the economy.
Economy is Not a Truck
The economy is not a truck and cannot be steered like one.
Decades of central planning by Russia and three major economic bubbles in succession in the US offer ample proof.
Pledge to Be Transitory
I pledge to be transitory. After firing nearly everyone upfront, my third goal will be to fire myself within two years.
End the Fed
The important real mission, step number two, is to end the Fed. I will maintain enough staff to work on that, nothing else.
To that end I will hire outside help such as Ron Paul who can assist with the mission.
Some plans along these lines have already been written but we need to review them and implement them in the least disruptive way.
Cost Savings Analysis
I volunteer for the position and will accept no pay.
The savings will be immense.
And the economic benefits of ending the micro-management group-think practices of the Fed are incalculable.
Conclusion
Dear Dallas board, hopefully you can see that I am the best qualified person for job of President of the Dallas Fed.
I look forward to meeting you in person to accept your offer.
Michael “Mish” Shedlock
Word to my Followers
I submitted my application above to the Dallas Fed.
Despite the obvious merits of my application, there may be a small bit of hesitancy on behalf of the board to make me an offer.
You can help.
Please go to the Dallas Fed FAQ, look for the Orange Box “Apply or Submit a Candidate” and give them my name.
You can also Email them directly at dallasfedsearch@egonzehnder.com. The subject line should read Dallas Fed Presidential Search.
Thank you for your support. I look forward to serving you as president of the Dallas Fed.
My position will indeed be transitory. I pledge to fire myself within two years while accepting no pay in the interim.
Thanks for Tuning In!
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Mish
