Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

February 16, 2017 | U.S. Fed Policies affect ‘all’ Global Institutions!

Don Swenson

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian: http://kingdomecon.wordpress.com.

Image result for scott alvarez federal reserve bio

Scott (the Fed’s legal mind) is retiring according to an article in today’s W.S.J.

Image result for power and independence of the federal reserve

Today’s W.S.J. article entitled ‘The Most Powerful Man in Washington You’ve Never Heard of’…written by Peter Conti-Brown reveals that events are rapidly changing at our centralized banking super-power institution. The Fed will soon be losing their primary legal counselor, Mr. Scott Alvarez, who has acted as a key policy-maker (without full Congressional awareness) behind the scenes for these past 36 years. Why this change now? I think it reveals that our Fed is finally getting some scrutiny and pressure from many outside sources. Watch as events now get more serious as our global economy starts to head downward.

Mr.  Peter Conti-Brown, a professor at the University of Pennsylvania’s Wharton School, has also written a book which is getting rave reviews in the press today…called ‘The Power and Independence of the Federal Reserve’. My brief review of the message of this book reveals that many thinkers are now starting to reevaluate this institution which we call the U.S. Fed. How did it evolve from its founding and is it a Constitutional entity as structured today? Why do we all need to get informed on this mostly secret organization and its power/influence over all our markets?

Peter Conti-Brown provides an in-depth look at the Fed’s place in government, its internal governance structure, and its relationships to such individuals and groups as the president, Congress, economists, and bankers. My brief review of his book and his podcast reveals that our Fed (as structured today) is basically a political creature with an F.O.M.C. which is essentially unconstitutional given how it operates. Our new President, Donald Trump, may now desire to shake-up this centralized institution with his new appointments to the Board and his public tweets about this organization.

Janet Yellen has just over one year left to serve as Chairman of the Fed and it is possible that she may be out of her leadership position than or even sooner. Can Mr. Trump fire Ms. Yellen now? This is a legal issue where opinions vary. Could Congress independently change the existing Federal Reserve Act to change the ‘independent’ status of this entity and return real-time oversight to their domain? This is another issue that is contentious but may arise in the coming months as Fed policy decisions become more dire for the entire planet. Let’s stay current on what is happening and get educated on this historical institution (which few comprehend or understand).

The following chart reveals that some 70% of global currencies (now cyber units) are affected when dollar policies within our U.S. Fed change. This is huge and makes our Fed the Superpower of monetary policy on our planet.

What this graph implies is that about 70 percent of world GDP has its monetary policy effectively set by the F.O.M.C.! Given the size of the dollar bloc and its spillover effects, it is likely the Fed’s total influence on global monetary conditions is even larger.
This is staggering. It means that twelve Fed officials that meet in Washington D.C. (secretly) largely determine global monetary conditions. The Fed is truly a monetary superpower for our entire planet.
Our U.S. Fed is finally getting some scrutiny by many thinkers and this will likely change some of the behavior within this organization going forward. Currently, there are two vacancies within the seven member Board of Governors. Who will the Donald choose to fill these vacancies. Will some existing members also choose to resign given that real media exposure is now happening? Watch and think about the Worldviews of any new appointments whom the Donald might appoint. Read the following for more info on what is now happening:
The Monetary Superpower: As Strong As Ever

[A] defining feature of the US financial system is that its central bank, the Federal Reserve, has inordinate influence over global monetary conditions. Because of this influence, it shapes the growth path of global aggregate demand more than any other central bank does. This global reach of the Federal Reserve arises for three reasons.

First, many emerging and some advanced economies either explicitly or implicitly peg their currency to the US dollar given its reserve currency status. Doing so, as first noted by Mundell (1963), implies these countries have delegated their monetary policy to the Federal Reserve as they have moved towards open capital markets over the past few decades.

These “dollar bloc” countries, in other words, have effectively set their monetary policies on autopilot, exposed to the machinations of US monetary policy. Consequently, when the Federal Reserve adjusts its target interest rate or engages in quantitative easing, the periphery economies pegging to the dollar mostly follow suit with similar adjustments to their own monetary conditions.

[…] The second reason for the global reach of US monetary policy is that a large and growing share of global credit is denominated in dollars. That means the Federal Reserve’s influence over the dollar’s value gives it influence over the external debt burdens of many countries.

[…] The third reason for the extended reach of US monetary policy is that other  advanced- economy central banks are likely to be mindful of, and respond to, Federal Reserve policy given the large size of the dollar bloc…  These  findings imply that even  inflation- targeting central banks in advanced economies with developed financial markets are not immune from the influence of Federal Reserve policy. This has led Rey (2013, 2015) to argue that the standard macroeconomic trilemma view is incomplete.

If you desire more perspectives on global economic events you can also visit this link: http://macromarketmusings.blogspot.com/.

What is now happening is that attention is being focused upon our global Central Banks and their control over all economic outcomes. This is good and it will reveal that we live under a corrupt system which does not represent reality or the people on this planet. Money rules over everyone and a few select powerful elites RULE over us all with their positions of POWER. Let’s get educated so change can evolve from the bottom. Enjoy! I am: https://kingdomecon.wordpress.com.

Some additional items to consider as you learn about our Central Bank:

Image result for power and independence of the federal reserve

Could the Donald fire Janet Yellen now? This appears to be a legal issue that is uncertain! Her term does expire, however, in February, 2018.

Image result for power and independence of the federal reserve

Is the Fed a political creature which serves political ends? I think so!

Image result for power and independence of the federal reserve

Does this institution represent the intent of our U.S. Constitution? I don’t think so!

Image result for power and independence of the federal reserve

One view on this issue of ‘Independence’! My view is to abolish this institution!

Image result for power and independence of the federal reserve

The Chairman of the Fed can basically control the decision-making within this organization via the psychology called Group Think! Voting has revealed that Group Think is prevalent within this organization.

End the Fed ebook by Ron Paul

I agree with Ron Paul’s view above!

Image result for power and independence of the federal reserve

Where does the Fed get its currency from? How did the Fed’s balance sheet increase from $800 billion (2008) to $4.5 trillion (today)?  Can any of our National debt be repaid or liquidated? Who is mostly responsible?

Image result for fed's balance sheet 2016

Our Fed has created trillions of cyber currency units from ‘thin air’ since the 2008 financial crisis (also called money from ‘no thing’). Who gets these ‘trillions’? Do the units represent anything real? What has happened to America’s historical Capitalism?

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

February 16th, 2017

Posted In: Kingdom Economics

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site

*
*