Proof of unworthy American leadership is having power to promote the general Welfare and using this rather to subvert it. Therein lies the trouble with the Federal Reserve's "independence," too. Its utter lack of accountability has established the institution as a transmitter of a deadly disease upon the majority of U.S. citizens.
Yet are we to assume this perspective—most relevant of all—somehow is driving Confetti into forced "retirement" (read: "pursuing other opportunities")? Not when the likes of Larry Summers are being paraded as Confetti's replacement. We might instead consider him Team Fraud's bid to complete Confetti's initiative venturing to increase the Fed's transparency. With Summers at the helm there simply could be no doubting the Fed is a criminal enterprise. Given dubious circumstance surrounding his tenure as president of Harvard University leading to his sudden, forced departure from the position, we might even wonder whether the intention behind Summers' prospective nomination as Fed chair is to incite a rebellion among the ruling class! One can only hope. After all, President "Bashar al Assad Must Go" has in fact delivered al Qaeda's smashing in Syria, while having earlier posed as President "Reconciling with the Muslim World" we now see the result is the Muslim Brotherhood being put on the fast path to its demise (not that the latter is any more representative of its namesake than Angela Merkel embodies the essence of a "Christian Democrat").
We might better address here, too, the view of one Felix Salmon, one of Team Fraud's favorite monetarist obscurantists who claims "the chances of the next Fed chair encountering a financial crisis similar to 2008-9 are pretty slim." This conclusion could be considered drawn from clear reasoning only were we to suppose its basis rests on the fact that, the Fed today is far less obviously insolvent than was the case back then. Quite the opposite is true, however. Furthermore, Confetti has not been on a hyperinflationary securities buying binge despite a banking system whose operations are self-sustaining. Rather, the Fed's quantitative easing is the crude means by which the wildcat banking system it euphemistically "regulates" has gained copious quantities of new claims needed to paper over the utter insolvency of old claims on its books. Whereas prior to 2008 this very same dynamic was satisfied via a banking system operating on the lender of last resort's implicit guarantee, now required is explicit intervention whose continued necessity exposes just how shattered is investor confidence in the entire rickety structure of capital markets. Salmon might confuse rising asset prices for "confidence" in the viability of today's extraordinary measures required to sustain the illusion of the banking system's solvency, but it is our longstanding contention rising asset prices are a function of a lemming effect influencing virtual iguanas who, no doubt, are keeping at least one eye permanently fixed on the exits. (No need here to reiterate the physical mechanisms by which the illusion of asset "demand" has been effected, particularly at the bottom of the capital structure.) The only "success" the Fed is having through its QE policy is maintaining modest control over the process of shedding so-called "excess capacity," this while piling on added claims against a diminishing physical capacity to generate wealth needed to sustain the viability of old and new claims alike. There will come a point in this process, however, when its unsustainability will become obvious even to the most dense, dyed-in-the-wool monetarist flunky. The bloodbath emerging markets have been enduring of late suggests that moment is fast approaching, indeed.
Now, having again here raised the issue of "excess capacity" whose shedding the monetarist hack Confetti insanely has relied upon to supposedly subdue inflationary pressures, our discussion need delve a bit into the claim being made by some suggesting Janet Yellen is a more "Main Street" friendly candidate for the Fed's chairmanship than is Larry Summers. If there is anything whose effect continues decimating "Main Street," it is Confetti's intentional policy venturing to manage the shedding of the physical and financial economy's "excess capacity." Yet it simply is not enough to suggest Yellen would be tougher on banks, and thus more "Main Street" friendly. What is she proposing per reversing the collapse of the global economy's "excess capacity"?
Here's a FACT: still parabolically rising financial claims (these particularly at the highest rungs of the capital structure) on a moribund global physical economy require the latter's "excess capacity" become productively utilized, rather than shed, such that new wealth effectively be generated, thus maintaining the viability of all existing claims. Absent this the whole shebang is guaranteed to come down (and I would argue as intended). So, what's Yellen proposing to liberate the Federal Reserve's credit creating capacity such that it not be exclusively dedicated to plugging the hopelessly compromised dike holding up a reckless banking system whose book is marked to fantasy assuming the physical economy's diminishing productive capacity can somehow sustain expanding financial claims against it through the magic of the market (albeit one increasingly deluded by lender of last resort sleight of hand tricks)?
I have not seen a thing detailing Yellen's "Main Street" friendliness on this count. Yet, it's all that matters! Credit made available for employing the physical economy's idle capacity is the only thing standing between the dying illusion that sustains the credibility of today's criminally incompetent Fed and a collapse rivaling the 14th century Venetian banking collapse whose effect brought the Black Death.
Replacing Confetti, then, better be the U.S. House of Representatives, itself. Indeed, no better potential advocate for "Main Street" exists. "Seize the Fed!" positively need become the concerted call to elected representatives. The so-called "forgotten man"—"the 99%"—is a product of a treasonous Federal Reserve evolving in the wake of the formal destruction of the Bretton Woods System of fixed exchange rates on August 15, 1971. Effective redress of circumstance defying every last humanist principle for which the U.S. was formed to uphold and defend (these being eloquently stated in the simple, single-sentence preamble to the U.S. Constitution) requires of citizen victims only insistence of elected representatives that, credit not be reserved a luxury afforded solely those most reckless, inhumane imperialist ideologues who today dominate the boards of what are called "too big to fail" banks.
There positively is no reason why countless municipalities throughout the United States should be facing imminent bankruptcy when there exists so much idle capacity waiting productive employment for the sake of promoting progress whose likes could (and, indeed, must) venture to radically transform the U.S. physical economy to once again become the engine of growth for the entire globe. Without this sort of initiative it simply does not matter who becomes the next Federal Reserve chairperson. Absent any intention to employ today's idle physical capacity (most emphatically millions of unemployed and underemployed Americans), let alone expand what's available to be gainfully utilized, financial assets of every sort are doomed to become as unjustifiably undervalued as they are wildly overvalued today, as is a barbaric relic whose advocates mistakenly believe a store of value impervious to hunger and want. None of this near certain prospect, though, means a thing in comparison to destruction of the United States itself. We might indeed fear this end is in the immediate offing, as well, as it appears no one is bothering to question why Confetti is being forced out by a bi-partisan consensus of the U.S. ruling class. That we haven't heard Team Fraud squawking up a storm about Confetti being put out to pasture naturally suggests something incredibly nasty could be afoot.
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