Skip to main content

"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

Popular posts from this blog

Free Money: The Tech Secret Even Silicon Valley Doesn't Know

In July of 2015, Vitalik Buterin officially released the game-changing technology of Ethereum, an immediate competitor to its now-popular and relatively better-known counterpart Bitcoin. A cursory evaluation of the following chart might lead the reader to some wild conclusions, so continue reading to acquire a better understanding of the trajectory of this new-age abstraction of online currency that, despite its massive gains in recent weeks, hasn't remotely become a household name in even Silicon Valley, the tech capital of the world.


A variety of formal and informal polls suggest a lagging familiarity with the increasingly popular cryptocurrency giants. Those who claim awareness are most likely to recognize Bitcoin, while Ethereum has still flown largely undetected in even the heart of Silicon Valley. One might assume with a chart like this, with its major parabolic upswings and indefinite streams of free money, that awareness of the blockchain medium of exchange would have surg…

Hurricane Irma Reveals How Nationalistic America Really Is

It's interesting how the Weather Channel seems to treat the devastation of the Caribbean, even American territories, as precursors to what they have identified as the event, otherwise known as landfall upon the continental United States.

For the people presently facing Irma, the event is happening now.

The reason this is important is that it implies a lot about the way we view the world and its inhabitants.

Although the political map clearly illustrates borders between nations, views from the International Space Station reveal that these boundaries are mere imaginary lines drawn by history's political pundits whose self-interested motives altogether failed to represent the unanimous consensus of the time, and yet they fail even more miserably in that capacity today.


Notwithstanding the fact that we are all inhabitants of this earth, of the same species and familiar family dispositions, we are subliminally inculcated by political representations of this terrestrial world to ass…

Market Manipulation: Mirages in the Desert of Economic Despair

An article published today by MarketWatch, entitled The world is becoming desperate about deflation, reveals the astounding truth that interest rates would not have remained as low as they are today if the American economy had truly recovered from its most recent recession.

Economists of the political ranks tend to support lower interest rates and inflationary measures because they advance spending, boondoggles and measurable economic activity to the limited timeframes of their active administrations, at the real expense of future output and thoughtful investment that simply affords no benefit to present-day headline economic indicators and the intellectuals who wield them.

In an anemic economic climate, infrastructural change is the antidote to misinvestment, while monetary manipulation is the politically-convenient mirage in the desert of economic despair.


While wanderers across that desert perceive advantage in continuing to chase elusive returns and public policy tacitly rewards t…