Fed Chaos: Distraction, Drama, and a Failure on Price Stability

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Hey, like the Bravo, the real housewives and house dads of the Federal Reserve. That’s basically what we’re watching. A damn stupid ass reality show. Yeah, no, no focus at all. No focus at all about the Fed, whether it should even exist. No, no, no, no, no. We’re worried about buildings and construction costs.

and who is responsible and my God, look at the net worth of Kevin Warsh and look at who he’s married to and he has criticized people in the past and what is this one gonna do? It’s a fricking joke is what it is. And that’s what the media does. That’s what the powers at Bidu, they distract you.

They know that the American public’s like follows this BS, like it’s like a laser pointer with a cat, people’s heads turning all over the place. Federal Reserve, what is their job? You have one job. You have one job. What is that job?

Price stability.

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Well, they’re supposed to also be worried about unemployment as well. And that’s just a bunch of BS. Like the only thing they’re going to worry about when it comes to employment is whether or not they’re going to hire some other egghead economists out of an Ivy League school that have never had a real job in their entire lives. That’s just their, know, we screwed up my bad, but you know, we got to worry about unemployment. Bullshit. It’s all complete utter bullshit.

There’s that movie from the 1990s, Office Space. I cited this this past week, I think. The Bobs. The Bobs, were the consultants that came into the company and interviewing all the employees to see who they were going to fire. What exactly do you say you do here? What do you do? What do do? Your job. Bill Belichick, do your job. What is your job?

Price stability.

You haven’t done it. You haven’t done it. One of my favorites. One of my favorites. One of the smartest people in the country when it comes to monetary policy. And I have cited her countless times. Countless times I have been, I have had the honor of appearing with her on TV. Again, rock star in my kind of, you know, dorky world.

Okay, Judy Shelton. Judy Shelton been right on everything. Been right on everything. And it’s you know, the sad thing about the state of our world and how things work. She was up. She was she was put up to be on the Fed and they rejected her. They had a you know, she ended up pulling her nomination. It’s funny how we have a country where we have like the most qualified the best and the brightest. But you know, we you know, we keep them out.

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It’s kind of like having a baseball team and you’re keeping like Aaron Judge and Shohei Atani on the bench. Why would you do that? Anyway, she had a piece in the Wall Street Journal and talking about this Senate Banking Committee hearing that’s going to be taking place today. And again, nothing is going through. At this point time, Tom Tillis is saying,

Nope, nope, nope, nope, because of this whole thing going on with Jay Powell and the renovations and a little side note. Donald Trump appeared on CNBC this morning. Joe Kern and his buddy serving him up, not softballs, but beach balls. Yeah. Will you let that whole thing against Powell go? And he’s, I don’t know. That’s expensive. So they thought that they were going to get him to let it go so he could go through the committee. That didn’t happen anyway.

Anyway, a little bit more important, just a little bit more important than the Fed’s renovations. That’s one thing. That’s one thing. But again, that’s minuscule compared to the losses that the Fed has incurred over the past three years. It’s over $200 billion. One would think that, gee, know, these people that supposedly are supposed to be looking after the folks, looking after their constituents,

The people we vote for, lawmakers, they might be a little bit more focused on the frickin’ damage.

The freaking damage that the fed policies have on our society. mean, do you understand the soundness of money? I’m just throwing it out there. and again, you know, and again, I thought this was kind of funny. Judy put this in her article and I’d be like, Judy, okay, come on now. you know, Congress, Congress, they don’t want any responsibility anymore. They don’t. They’re influencers.

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They don’t want responsibility. They’re there to raise money, create videos, and for the most of them, put them up on YouTube. They don’t want to have to do They don’t want to pass. They don’t want to do anything like that. She says it’s time for Congress, which is charged with ensuring a trustworthy currency, recognize that outsourcing this responsibility to the Fed is a big part of the problem. Judy, I would say, Judy, they like that.

This is where I said they want that. They don’t want the responsibility.

They don’t want to have anything to do with that. Responsibility? No. No, outsource response. Congress outsources responsibility. They outsource lawmaking to acronym agencies within the executive branch of government. That’s what they do.

What exactly do they do? Basically, we have an elected House of Lords that gets really, really rich. Anyway, Article 1, Section 8 of… Just this thing here. Let me pull it up. look at this. You see it? You’re watching? That’s the United States Constitution. Yeah. Grants Congress.

the power to regulate the value of money. Hmm. That same sentence also grants Congress the power to fix the standards of weights and measures. Yeah, if you’ve been listening to this show, we kind of talk about that, right? That’s all the dollar is, is a unit of measurement. I was interviewed on this today and was asked to me about this. I’m saying crying out loud. Okay.

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You know, we know exactly, exactly how far the late great Jim Brown ran as a running back because a yard then is a freaking yard today. Most of the things that I have to talk about now, I have to have an inflation calculator up on one of my computer screens at all times. Because arguments that make that people make more often than not using dollars

They don’t bear any weight because you have to take inflation into account and the destruction of people’s buying power.

America’s money was meant to provide a reliable measure and store of value. An unvarying monetary standard was integral to the founders vision of a nation dedicated to personal liberty and economic freedom. James Madison believed a depreciating currency was unconstitutional because it affects the rights of property as much as taking away equal land in value. know, founders were pretty damn smart.

Pretty unbelievable. They didn’t have iPhones. They didn’t have computers and they could literally be a slap. Our current crop of people in Washington DC any day of the week.

The original commitment to ensuring a dependable dollar has given way to a generalized acceptance that the dollar should be managed by political appointees and technocrats despite public outcry over perpetual inflation. The Fed deliberately seeks to reduce the value of the nation’s money by 2 % annually. Think about that. That’s the target.

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Okay, that’s the target that the intentional debasement, the monetary policy of intentional debasement was made public in 2012. Yep, that was at the urging of Ben Bernanke. And that was part of his central bank’s mandate to promote stable prices. Now, let ask you question, because again,

Let me put it to you this way. Yeah, for the people like, well, you know, 2 % is reasonable. That’s reasonable. It’s no problem. I get this from people out there. Let me reframe it this way. I’m going to take 2 % away. Is it OK? Would you rather than 2 % rather than 2%, how about we do this? How about we do an 80 % decline in the dollar’s purchasing power over the average lifespan of an American?

Would you choose that? No way, man. No. It’s the same thing. That’s like, you know, when I mess around with kids, which weighs more, a pound of lead or a pound of feathers, two percent reduction. OK. And buying power, two percent inflation target equates to losing 80 percent of one’s buying power over their lifetime.

It’s the same wrecking thing.

Judy writes if the reliability of the nation’s monetary unit is viewed as a basic property, right? The current Fed chief has a lot more to answer for than mismanaging a building renovation. Since Powell took over the Fed in February 2018, cumulative inflation has increased dollar prices by more than 31%. And that’s just the frequency.

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Okay. We all know that that for lack of a better word is bullshit. Yes. Yeah, I use my mother’s Greek word black. Yes, it’s it’s it’s what it is. 31. We worse than that. How do you reconcile the American ideal of sound money with the reality of a central bank that describes itself as ultimately accountable?

to the public and the Congress. Again, this is as you know, trying to quash grand jury subpoenas.

Again, Powell says they’re not above the law, but they’re trying to get rid of that. And he’s not going to step down. And I understand all again, all of the drama that surrounds this got worse shoes there who says the Fed has inappropriately enlarged its role in steering the economy, granting boundless power to government agencies to solve the world’s problems does not square with my disposition. Again, he said that at the

international monetary funds, spring meetings in Washington. To be trusted economic institutions must be trustworthy. To be trustworthy they must prove themselves competent. I agree. I’m right on board there. Right on board with that. That is competent. mean that this that’s all we have. But what is Warsh going to do? He’s the Fed Chairman. He’s still got to deal with the same

500 yahoos that have been working there.

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In August of 2022, when inflation was running at 8.3%, that’s government 8.3%. Powell stated price stability is the responsibility of the Federal Reserve. Well, if you were Japanese at that point in time, you might have permitted that that hara curry thing, you know, you failed miserably. What exactly do you say you do here?

Such declarations mean nothing when the failure to perform carries no penalties. For all the sanctimonies talk about the feds mandate to deliver price stability. Again, Powell hasn’t apologized and hasn’t resigned for missing the mark. again, it’s not just him. It’s not just him. We have completely gone off the rails.

We’ve completely gone off the rails. We’re $39 trillion in debt. The Fed’s balance sheet is filled with, how shall I put it, dog shit portfolio. It’s just, it is what it is. Will anything change? You get another new Fed governor.

But I got a sinking suspicion to quote the who meet the new boss. Same as the old boss. Watchdog on wallstreet.com.