"Anti-Establishment" Trump Appoints "Establishment" Fed Chairman

Donald Trump has appointed monetary dove Jerome H. Powell as next Fed chairman.

There is possibly no one more "establishment" than Powell, who was originally nominated to the Federal Reserve Board of Governors by Barack Obama after a stint with the US Treasury.

Powell is likely the closest Republican-labeled surrogate to Janet Yellen, whose shared support for Dodd-Frank and QE3 stands at odds with the anti-establishment attitude advertised by Trump during his campaign.

What's more, the Trump campaign justifiably focused upon the phoniness of the US economy during the 2016 bid, while Powell has even recently celebrated a "strong" US economy and labor market, in addition to condemning current lending standards for being "too rigid."

This appears to be business as usual rather than "draining the swamp."

In response to his appointment, Jerome Powell began his acceptance speech by alluding to the Federal Reserve's so-called dual mandate, price stability and full employment.

As it turns out, the market economy organically operates toward a reduction of marginal costs and the prolific distribution of leisure at the elimination of drudgery, both of which oppose those mere nominal measures which bear relevance only to the diplomats and their hired statisticians.

Meanwhile, the major indices have remained stable, suggestive of investors' anticipation of continuity with Janet Yellen's stencil.

If you bought into Trump's drain the swamp mantra, it appears time to sell the fact.

Comments

America's Civil War: Not "Civil" and Not About Slavery

Virtually the entirety of South and Central America, as well as European powers Britain, Spain and France, peacefully abolished slavery — without war — in the first sixty years of the nineteenth century. Why, then, did the United States enter into a bloody war that cost over half of the nation’s wealth, at least 800,000 lives and many hundreds of thousands more in casualties? The answer: the War Between the States was not about slavery. It was a war of invasion to further empower the central government and to reject state sovereignty, nullification of unconstitutional laws, and the states’ rights to secession. It was a war that would cripple the South and witness the federal debt skyrocket from $65 million in 1860 to $2.7 billion in 1865, whose annual interest alone would prove twice as expensive as the entire federal budget from 1860. Likewise, it was a war that would witness a five-fold increase in the number of civilians employed by the federal government, as federal gove

Into the Wild: An Economics Lesson

There is a great deal of substance behind the Keynesian motif, “In the long run, we’re all dead.” If this is your prerogative, your axiom, we are destined to differ on matters of principle and timeline. Surely, any quantity or decided cash figure is relevant exclusively to the available produce yielded by its trade. The current valuation thereof, whilst unadulterated, corroborates a rather stable, predictable trend of expectations, whereas its significance wanes once reconfigured by a process of economic, fiscal or monetary manipulation. Individuals, vast in their interests and their time preferences and overall appetites, are to be made homogeneous by an overarching system which predetermines the price floors, ceilings and general priorities of life. Of course, all of this exists merely in abstract form. However, the supposition proposed by those who champion the agenda of “basic needs” fails to complement the progress achieved by the abolition of presumed guilt by the sole mis

Cullen Roche's Not So "Pragmatic Capitalism"

In his riveting new work Pragmatic Capitalism , Cullen Roche, founder of Orcam Financial Group, a San Diego-based financial firm, sets out to correct the mainstream schools of economic thought, focusing on Keynesians, Monetarists, and Austrians alike. This new macroeconomic perspective claims to reveal What Every Investor Needs to Know About Money and Finance . Indeed, Roche introduces the layman to various elementary principles of economics and financial markets, revealing in early chapters the failed state of the average hedge fund and mutual fund operators -- who are better car salesmen than financial pundits, Roche writes -- who have fallen victim to the group think phenomenon, spawning the nearly perfect positive correlation to the major indexes, and thus, accounting for tax, inflation, and service adjustments, holistically wiping out any value added by their supposed market insight. Roche also references popular studies, such as the MckInsey Global Institute's report whi

Paradocracy

Search This Blog