Herman Cain and Stephen Moore are the beginning of Trump's 'politicization' of the Fed: Barclays

https://www.cnbc.com/2019/04/06/tru...herman-cain-will-politicize-central-bank.html

I think politicisizing the Fed is a grave mistake which might result in central bank becoming very partisan (like SCOTUS).
I like the way it currently is because the Fed is neutral to politics. If they start manipulating money supply or interest rates based on pure political bias we will find ourselves in a banana republic very soon.

 

No DOUBT about it,he is taking the Federal Reserve in a direction it has never gone before,appointing his political and personal biases into the mix like he does with all his appointments.He puts his beliefs and criteria ahead of the good of the people of the USA who he is supposed to serve.

 

Newsflash liberals....Herman Cain was the Deputy Chairman and then Chairman of the Federal Reserve Kansas City from 1989-1996.

 

Besides, the Federal Reserve has always been politicized.

 

What exactly do you think the Fed has been doing, especially since 2008?

It is already political AF. Every decision it makes is political.

When Fed apologists say it needs "independence" what they really mean is that it needs unaccountable, unlimited power.

 

They are starting to need helmets they stumble and fall flat on their faces so often these days.

 

The Fed should be politicized.

When rates are increased it inflates asset prices, when rates are decreased it's giving free money to wealthy investors.
This is all coming out of inflation from the government's budget purchasing power.

If government is giving billions to very wealthy investors, why shouldn't that be politicized?

 

I’ve seen the consequences of that with my own eyes in Ukraine in the 90-s. When government has direct control over central bank and starts to print money to pay for its bills things get ugly very fast.

 

We don't need to print money, we can just erase our debt anytime we want.

What's anyone going to do about it, go to war with us over it?

Put sanctions on us?

So our debt is irrelevant in the long term since we always have that ace up our sleeve.

We will just tell the world that we are now debt free, we are starting over from zero so deal with it.

 

Wow, just wow. This shows a complete lack of understanding of how anything works. No wonder you support Trump, you know even less than him, and that takes real achievement in avoiding knowledge!

 

A liberal told me it when Obama was president.

Are you saying the liberal was lying to me?

But please, inform my ignorant self what would happen if we simply erased our debt tomorrow?

You skipped over that part in your criticism of me.

 

Well, you can’t really force anyone to buy American bonds. A default that you described would plunge the planet into a very major recession, and good luck selling those bonds after the recovery unless we put the gun to other nations heads. At that point we might as well just declare other nations to be our vassals and force them to make an annual payment for “protection”.
Also, uncontrolled money printing is not even about debts. It’s more about government paying for its bills. If the government directly controls the central bank and then starts to make everything free for its residents and can’t match expenses to tax revenue then you have a major temptation by the government to avoid borrowing and just print the money.

Look at Maduro - that idiot has gold and oil reserves, still prints money like crazy. Zimbabwe was there too. Ex-USSR countries learned the lesson in the 90s as well.

 

I do not see anything political about the Fed. Every time a president appoints someone they are looked at based on their qualifications. If we start appointing board members based on political affiliation the Fed will turn into a circus similar to SCOTUS, except everyone, including you and me, will pay for their screwups and political tug of war with our very own and real money.

 

Why don't you tell us how you are going to erase our debt? What do you really think will happen if America decides to default on it's bonds. That actually was a proposal our moron of a President made before saner heads prevailed. I

 

You'd have to research it yourself. You clearly aren't interested in learning. If I'm wrong, google is your friend!

Honestly I, nor anyone could say for sure, but what we can say (and know without a doubt) is it would have DIRE consequences. It would definitely collapse most of the global economy. China would be as bad off as we are. The exact consequences are very hard to know. If you should believe anything, it's that the US would suffer DIRE consequences of some form, and really isn't that enough to know better?

Also if you think, even now under Trump, that the US military could hold off either the Russians, Chinese, or Indian Armies, or even NK, alone for long, think again! Nuclear weapons would become our ONLY option. Without the French, British, Germans (NATO). to rescue us, any two of the aforementioned military powerrs would make MINCEMEAT of us, in short order, regardless of you believing me or not. It's a simple fact. Yeah, we have great tech, but we are NOT as far ahead as we once were, not even close. If you think Nuclear weapons are "a viable option" in that case, there just is NO help for you.

See how much Help NATO would be if we told them to **** off on what we owe? I know the conservative myopic view is that Europe could not defend itself, but that just isn't the facts. Yes we help, but France alone is a CONSIDERABLE might. Don't even start with UK Military prowess. That is only two. The EU has become it's own superwpower.

Yes, the US is formiddable, but not unstopable or even close.

 

OAC.. Is that you?

 

So you can't say for sure but you know without a doubt?

That doesn't make sense.

You are saying we would suffer dire consequences, you know this, but you don't know how?

So how do you know it?

Here's what I think. The world would bitch and moan and say it isn't fair then cut their losses of the money they are out and go back to business as usual.

Maybe all nations would follow our example and we'd just have one big do-over.

You've presented no evidence other than some obscure dire warnings about what may happen.

I say we run up the credit cards and try it out.

 

Would we need to sell bonds if we no longer had any debt?

 

If spending is bigger than the tax revenue then yes - we’d need to borrow. Or print money, with all of the consequences.

 

We already print money. What if, instead of putting that money in the hands of bankers, we put that money directly in the hands of the treasury?

 

More IDIOTIC than your previous statements. EVERYONE who understands economics a little bit, agrees on "DIRE CONSEQUENCES", it's the specifics of what, be they military, civil unerest, mass starvations, famine, total energy grid collapse, or all of the above. It is absolutely certain that the entire world economy would collapse. That's a given. Point is, you showing your position to be dumber than Trump, who doesn't understand economics (even a little bit), and doesn't care to learn either. Probably better to leave the discussions to adults who can undersand, m'kay lil fella (or gal)?

 

The whole world defaulting against each other... That's an interesting thought.

 

So it's certain the world will collapse.

Why don't you give us an example?

I mean, you are certain after all.....aren't you?

 

Like I said, it would probably just be a big do-over.

Everyone wipes their debt out and we start tomorrow, doing it all again.

 

With a little more nuance the position of debt default as a possible solution is completely viable.

The fact of the matter is that the United States holds all the cards, it's debtors do not.