We must strongly object to the first limit Plosser is suggesting here. We would instead counterpose the Fed's full employment mandate rather is its most suitable policy objective. The purpose a U.S. central bank foremost ought serve is fostering those uniquely American principles eloquently stated in the U.S. Constitution's Preamble, the likes of whose ultimate benefactors are the nation's people.
- Limiting the Fed’s monetary policy goals to a narrow mandate in which price stability is the sole, or at least the primary, objective;
- Limiting the types of assets that the Fed can hold on its balance sheet to Treasury securities;
- Limiting the Fed’s discretion in monetary policymaking by requiring a systematic, rule-like approach;
- Limiting the boundaries of its lender-of-last-resort credit extension.
While "price stability" can be regarded a much too loose benchmark and subject to distorted interpretation, we might say the same, too, of the Fed's full employment mandate. Admittedly, any employment objective need be formulated in some manner providing measurement of labor's potential productivity. Raw measure of the number of "jobs" employing the nation's citizens simply falls short. Surely, scientific principles, no matter how limited, or indeed wrong these are in their present representation of physical reality in which humanity is situated (the first and second laws of thermodynamics come to mind) ought be up to the task of providing a less imperfect sense of labor's potential productivity from which can be guided Federal Reserve policy tuned to the task of forwarding uniquely American principles.
In other words, the monetarist garbage today driving central bank policy must go. There is nothing inherently of "value" in money whose psychological affinities evoked in the midst of a given physical paradigm are the foremost concern of today's imperial central bank policy operations. Rather the physical paradigm animating labor's potential productivity to the effect of raising labor's value to itself and the nation, increasing labor's power in the here and now in fact, and furthermore, assuredly in the future, is the principle objective central bank policy need promote. Only thus, too, will "value" assigned to finance capital certainly be assured. Either humankind's potential productivity and power is being elevated or it is being diminished, while the viability of finance capital hangs in the balance. Thus ought humanity's well-being be the crucial benchmark guiding central bank policy. Fleeting perceptions of the soundness of finance capital at any moment in time offer no lasting basis for establishing a "more perfect Union." Our present state of affairs vividly reveals this truth.
We might praise Philadelphia Fed President Plosser's implied admission the Fed has utterly failed as banking system regulator. We could agree, too, the Fed's role as lender of last resort is useful in principle, yet in practice this is a bridge it should never cross. Providing explicit backstop to the entire banking system should never be a possible outcome that is ever tempted in fact. Still, we ought not conclude that, once this bridge is crossed there is no turning back. Truth is were the Fed directly providing credit to finance the means of increasing labor's potential productivity, then, and only then, would exit from unfortunate necessity requiring it backstop the banking system's troubled assets be in sight. That Plosser's proposal to limit the Fed does not in the least breach this matter simply relegates his stated idea the work of someone unworthy the title "statesman." He is rather revealed just another monetarist hack.
The Fed's full employment mandate is not to be diminished. Any legislative effort venturing this ought be resisted. Indeed, what's needed right now is legislation elevating the Fed's employment mandate to a position of primacy. Senator Elizabeth Warren, through her "Bank on Students Loan Fairness Act" (S.897), demonstrated the mechanics a U.S. "statesman" would propose directing the Fed in a manner aiding its capacity to meet its full employment mandate. Therein was shown how the Federal Reserve could, as it should, serve the nation's people foremost—indeed, as it must. The oft stated chimera raising the Fed's "independence" to some sacred principle not to be violated is no less a fraud than a phantom "free market" otherwise imposing slavery and want. Our nation's central bank is an institution formed by government, the likes of whose powers are stated in the Constitution. Thus must the Fed's conduct foremost adhere to the political cause the U.S. federal government exists to forward. The Fed has no right whatsoever to an "independence" separate from that won in the American Revolution.
Which brings us to today's 50th anniversary of the assassination of President John F. Kennedy in Dallas, Texas...
Dr. Webster G. Tarpley, the man who should be the next Fed Chairman, recently interviewed Professor Donald Gibson whose 1994 book, "Battling Wall Street: The Kennedy Presidency," provides keen insight from an economic angle into the social conflict today's reckless and hopelessly insolvent albatrosses have been part in provoking ever since FDR took his last breath. Unfortunately, Gibson's book is out of print. However some of its contents were extensively reproduced by the Daily Kos in February 2007, and these links are provided below. Hopefully we will soon see this book back in print, as we discover from its excerpts that, Team Fraud's provocative, misguided language is timeless. With the passage of five decades now since Kennedy was violently removed from the presidency, truth animating imperialist tools of oligarchy persistently defiling sovereign authority in defiance of fundamental matters of utmost concern to a common language culture awakens unmistakable understanding of the nature of the underlying intention these agent provocateurs have been wittingly venturing.
Open to discovery here, really, are the depths to which a subversive enterprise sinks to destroy the United States. Understanding the utter frailty of today's economic paradigm, we better perceive, too, how even wealthy U.S. interests, let alone broader society these abuse, likewise have been made dupes. Greed and megalomania promoted in a paradigm inexorably moving us toward chaotic collapse in financial insolvency amidst economic decay rather are exposed wicked vices manipulated to mask a cause venturing destruction of the United States itself. The excerpted material from "Battling Wall Street: The Kennedy Presidency" superimposed on what today clearly is a Federal Reserve System at heightened risk of destruction leaves little doubt about the larger agenda pursued over the interim since Kennedy's assassination. Given a central bank trapped in a failed paradigm, and insisting upon remaining so, we can begin to imagine how the Constitution's 14th Amendment, Section 4 might prove the device sealing the nation's doom.
As the moment of truth is uncertain, we might consider an the Elliott wave based perspective raising the possibility Y2k did not mark end of the debt-fueled advance levitating equities in the aftermath of the August 15, 1971 destruction of the Bretton Woods system of fixed exchange rates. Assuming the market's post-Bretton Woods advance began in early 1974, we could then suppose Y2k marked the end of but the 3rd wave of 5 waves higher off early 1974 bottom, with this 3rd wave, itself, beginning in August 1982.
Now, just as easily we could assume Y2k peak ended a 5-wave advance in the Dow Jones Industrials Average from its 1932 bottom. Here, though, let's consider the possibility the 5th and final wave of the Dow's advance off its 1932 bottom, having begun in 1974, has yet completed. Where are we, then? Assuming Y2k marked the end of the 3rd wave of 5 component waves up from early 1974, these forming the 5th wave in the Dow's advance since 1932 bottom, what at this point are reasonable possibilities forward?
Well, we see a couple non-Elliott wave based technical states dampening immediate prospects. These somewhat lessen probability the 5th wave of 5 waves up from 1974 has been forming off March 2009 bottom.
The first is a head-and-shoulders failure following apparent formation of a head-and-shoulders top from 1997-2002. "Failures" of this sort are not unusual. Furthermore, "distribution" a head-and-shoulder top marks eventually brings to bear this pattern's typical consequence, whereby a minimal decline below the head-and-shoulders neckline equal to the distance from the neckline to the top of the head is realized. So, "failure" more often translates into "delay."
That such delay could be reaching its climax, however, is suggested by the Dow Jones Industrials' MACD. Fed induced exploitation of a broken price discovery mechanism has extended the momentum of the Dow's advance to its upper reaches, challenging readings registered during former days when lenders of last resort provided but implicit guarantees, rather than today's explicit hyperinflationary flood desperately venturing to sustain the viability of still expanding financial claims on a still collapsing physical economy.
So, considering the possibility 5 waves up from 1974 bottom still are in the midst of unfolding, there's a decent chance the 4th of these continues to develop off Y2k top. As such, we could anticipate an upcoming, significant setback taking out March 2009 bottom, yet still remaining well above levels last seen in the 1987-1994 period, this prospectively completing the corrective wave forming off Y2k peak, after which the 5th wave higher then would commence, finishing a 5-wave advance off 1974 bottom, as well as a larger, 5-wave advance off 1932 bottom.
Also possible in light of prospect Y2k marked the end of the 3rd wave of 5 waves up from 1974 bottom is a scenario wherein the 4th wave in fact completed at March 2009 bottom, and forming since has been the 5th and final wave up from 1974, the likes of whose form is developing into a "rising wedge" whose 1st wave is in the midst of completing its a-b-c higher (each of the 5 component waves of a "rising wedge" unfold in a-b-c fashion, making this Elliott wave form "special" within the framework of the Elliott Wave Principle). In this scenario the next several years set up to be increasingly less volatile. Nevertheless, the greater part of anticipated volatility would accompany upcoming formation of this prospective rising wedge's 2nd wave (down).
Right now there is little doubt claims at the bottom of the capital structure are quite extended and vulnerable to coming under pressure. The extent of upcoming selling likely climaxing early next year should provide better sense of which Elliott wave based possibility is developing. Up to now we generally have been assuming Y2k marked the end of the Dow's 5-wave advance from its 1932 bottom. Thought unfolding ever since has been a corrective wave slated to sink major indexes to levels last seen in the 1987-1994 period. Notwithstanding noteworthy technical disparities coinciding with the market's advance off March 2009 bottom, feigned demand continues levitating the market in a rotation lifting laggards whose "value" has yet been hyper extended. Who knows how much longer this game of circle jerk the darling of the day can continue, while a hopelessly insolvent banking system at the economy's foundation draws sovereigns deeper into a hole from which today's paradigm offers no possible escape.
Oligarchy has been aggressively attacking sovereign authority and steadily consolidating its control over global assets, physical and financial, ever since its intelligence services assets murdered President John F. Kennedy fifty years ago. As this crew is not averse to springing traps—Bear Stearns and Lehman Brothers—we might ponder here the means by which sovereign nations now will be cornered into furthering oligarchy's dominance over the social order. General progress of the far-reaching sort being anathema to oligarchy, our attention thus turns to consider how the state of permanent war more or less in place since Kennedy's assassination could be expanded into the indefinite future. Moving in this direction the required sacrifice sustaining the illusion of the banking system's solvency would be forwarded, while youth's promise for a brighter future more completely destroyed and sovereign treasuries simultaneously bled dry. There should be no mistaking that, the current epoch's guiding social agenda aims to impose ever more pernicious forms of slavery. There is no more effective means of producing witting dupes encouraging this agenda than through actions drawing focus on manufactured enemies. These are created largely to elevate fear in an effort to subdue resistance to the hidden agenda being forwarded. Even the most violent acts of destruction raining death are made fair play. Oligarchy's oh so penetrating media assets spread disinformation, while humanity's real enemy remains obscured and unreported.
Although fifty years squeezing the Oswald lemon on a dumbed down citizenry plainly has failed—a solid majority of Americans believe the Warren Commission Report a coverup—ugly truth still marches on. What, then, of expanded means we possess to counter in our time still thriving lies and deceptions sustained by an oppressive, anti-social oligarchy destroying capitalism while forwarding barbarism and slavery? What of any technological wonder like the internet, born of charity formed through the human creative spirit, without there being will to seize political power and secure human dignity?
Author Joan Mellon has written the definitive work on the JFK assassination expounding upon her work as a volunteer for the prosecution in the only case ever brought to trial in the matter of the President's November 22, 1963 murder, this being led by New Orleans District Attorney Jim Garrison against Clay Shaw, CIA asset and director of the International Trade Mart in New Orleans Parish. Professor Mellon was interviewed by Dr. Webster G. Tarpley on October 25, 2013.
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