Posted on 09/16/2013 2:31:35 PM PDT by Shout Bits
Today, after careful consideration, I have reluctantly notified Pres. Obama that I am withdrawing my name from consideration as Fed Chairman. I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interest of the Federal Reserve, the Administration or, ultimately, the interests of the nation's ongoing economic recovery.
I am familiar with Dr. Friedman's work regarding money supply and the Great Depression of the 1930's and 1940's. Further, I am familiar with Taylor Rule and a few other topics. Therefore, my knowledge is at least broad and relevant as past Fed Chairmen. Still, I do not expect the Senate to overwhelmingly support my nomination. Therefore, I must withdraw.
Among my concerns for my confirmation hearings is whether, under oath, I can say the Fed's role is to manage the economy without the slightest oversight. I may not be able to affirm the Fed's role in tying OMC action to the unemployment rate, as the current Chairman has. After all, employment is the result of investment, and the Fed's current policy of paying banks 25bps to not lend money to businesses seems a bit counter-intuitive. If the Fed only wishes to bailout debtors by buying questionable bonds and releasing cash to those who would not invest it, factoring employment rates seems tertiary at best.
For that matter, I am not sure the Fed should manage the economy or buy private bonds at all. If the Fed had a proper role, it would be to stabilize the real value of currency. Since the Fed's creation, its primary work has been to devalue the dollar so that government and quasi-government debt could grow. The Fed has overseen a few banking crises and inflationary runs, but it has never controlled much of their negative fallout. Further, sound money managers such as Chairman Volker have had short tenures. I do not want to be a one term banker.
The Fed's secrecy troubles me. Nobody knows what the Fed invests in, how it reaches its decisions, and whom it favors over others when making such decisions. I cannot pledge to keep any wrongdoing I might discover secret. I cannot pledge to continue to support the Fed's chosen winners and punish its chosen losers. The money center banks for whom the Fed works are probably relieved that I no longer wish to be Chairman.
Further, the Fed's predictions for the economy trouble me. The Fed has proven to be so bad at predicting economic growth, a savvy investor could have made money by always assuming the Fed would be wrong. All those surveys and studies seem to yield results slightly less accurate than rolling dice. Count me out; I do not want to bet the Fed's $3.7 trillion balance sheet on beige hokum.
In short, despite my overwhelming qualifications compared to Ms. Yellen, I am not well suited to the political aspects of the job. I am reluctant to take credit for managing the entire US economy, nor do I wish to accept the blame when people borrow more than they can repay. When people find out the Fed is largely corrupt, there might be trouble I can't pontificate myself through.
Therefore, I have removed my name from consideration. I am sure Mr. Obama can find someone who reads Krugman, and maybe even Chomsky (for a veneer of independence and populism). I am thinking Sen. Warren; now there is a firebrand who is not above lying to get ahead. Best of luck to you, Mr. President, and do not hesitate to call if you need a Commerce Secretary. I like a position with no consequence.
Shout Bits can be found on Facebook: https://www.facebook.com/ShoutBits
I like your writing.
Shout Bits. I don’t know what that memes. But I kind of like that too.
Please explain your logo/icon/avatar. I don’t know what that is either, but I like red and white. It may be a white boat going into some too small and round harbor. Or there may be a darker, more plausible meaning.
ecomcon:
Just having some fun today.
The name Shout Bits sort of refers to how maddening things can get and the fact the blog uses bits rather than ink to send its message.
The logo is a take on a Bolshevik painting. You can read about it here: http://shoutbits.com/about/
I wuz pullin’ fer ya. What this country needs is to be on the zinc standard.
Austrians are not eligible to serve as Fed Chairman.
That is a good one. I wish I had thought of it. Funny.
I’m just a blind squirrel hoping to run across an occasional acorn.
Very good. I read some of your other posts. I would like them if I didn’t despise facebook. I mean if I had a facebook account.
Everyone should read Shout Bits. Seriously.
You are kind. No need to use Facebook. I post right here or on the actual web site.
Www.shoutbits.com
Bingo!
The Fed's actual purpose is to enrich a cabal of banks. After all, that's what bankers do!
As a nation we have stupidly ignored the Constitution by allowing Progressives to hire foxes as hen-house guards.
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