30 Aug 2018

The Myth of Fed Independence

Banking, Economics, Federal Reserve, Shameless Self-Promotion 5 Comments

My latest article is feisty. It sounds like I’m defending Trump and then…BAM! I go full Rothbard.

Trump committed a faux pas with his public complaints about the Fed. But his actual “mistake” was in letting the American people in on a dirty secret: The central bank is by its very nature a political institution that exists to serve the nation’s rich and powerful class, not the average Joe.

So by all means, let’s champion Fed independence from political interference, and start by taking away its government-granted power to create legal tender. If the Fed were a private bank like any other, we could be sure the president would no longer micromanage its policies.

5 Responses to “The Myth of Fed Independence”

  1. Steven says:

    You made it to Zero Hedge. Congrats!

    • guest says:

      Here’s the ZeroHedge article

      Bob Murphy: The Idea That The Fed Is “Independent” Is Absurd

      Best part, in my opinion, is this:

      “If the president and Senate were to pick the Board of Directors and CEO of Exxon — and this group then had regular meetings to announce its targets for the price of crude oil — nobody in the financial press would dream of calling Exxon’s decisions “independent” of politics. It would clearly be a state-run company, utterly subservient to Washington.”

      This is an important point to make to Conservatives, in particular, since they tend to see the reserve status of America’s fiat money as being pro-America rather than being based on collectivist economic fallacies (and therefore quite anti-American).

      Some of the commenters are anti-Jew, so it might be helpful to say something about that.

      I also saw some well-meaning links to videos that I’m suspecting (haven’t checked them out) are actually pro-Greenbacker videos.

      Gary North has an article addressing these types of videos:

      Government Money Masters: Anti-Gold Videos that Thousands of Tea Party Voters Think Are Conservative

      (Unfortunately, Gary’s link to a corrective video – one made by the Mises Institute – doesn’t display like it used to. Maybe someone could get him to correct the page.)

      • Bob Murphy says:

        Thanks guest. Yeah it’s unfortunate that there is a constituency who conflates “anti-central banks” with “anti-Jewish people.” 🙁

        • Dan says:

          Ha, you took that a totally different way than me. I thought he was telling you to bring up the Jewish thing to better reach the people who hate Jews. I’m now hoping your interpretation is right.

  2. Major_Freedom says:

    The Rothschilds will soon be gone from US central banking forever.

    Fed to be restructured.

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