Now that’s more like it. Echoing Donald Trump’s Monday night bull’s-eye regarding the Fed’s thoroughly political essence, Rep. Scott Garrett put more wood to Janet Yellen during yesterday’s hearing:
Rep. Scott Garrett, R-N. J., seized Trump’s mantle during Wednesday’s hearing, saying ‘the Fed has an unacceptable cozy relationship’ with the Obama administration and Democrats.
‘As the saying goes, perception is reality,’ Garrett told Yellen. ‘Whether you like it or not, the public increasingly believes that the Fed’s independence is nothing more than a myth.’
Of course it’s a myth, and a dangerous one at that. The truth is, Keynesian monetary central planning is inherently, massively and irremediably ‘political’.
That’s because it interjects the state deeply into the money and capital markets – -the very heart of capitalism – -and thereby in plenary fashion manipulates, rigs and falsifies the prices of all financial assets.
So doing, it supersedes governance by the many via continuous auction and free market processes of financial valuation and allocation with governance by the few, who rule arbitrarily and often secretly via ideological whims and shibboleths that they are pleased to call ‘policy’.
Worse still, the Eccles Building politicians who rule the financial markets directly – -and through them much of the balance of capitalism indirectly – – are unelected and are accountable to no democratic oversight and control whatsoever. They have essentially seized great power in the manner of a coup d’ etat, and have then added insult to injury by proclaiming the utterly spurious doctrine of Fed ‘independence’.
This post was published at David Stockmans Contra Corner by David Stockman ‘ September 29, 2016.