Zero Hedge Proposes John Taylor For The Position Of Chairman Of The Federal Reserve

Tyler Durden's picture

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AN0NYM0US's picture
John Taylor

Bank of Japan

Honorary Adviser, 1994-2001

and a few years later in 2003 this cheery outlook on Japan from Dr. Taylor

In sum, there are clear signs that things have changed in Japan. The building blocks for sustained, robust economic growth are being established. Further reform efforts will be needed across the spectrum of economic policy to ensure stronger growth. As the Koizumi Government continues to implement banking, regulatory, and other reform measures, a brighter economic future is in store.



Sancho Ponzi's picture

You obviously have an agenda. Do you remember Stalag 17? William Holden understood Peter Graves was the Nazi infiltrator because when he received a beating, Graves hit harder than the others. Perhaps next time you will show more finesse.

msorense's picture

Thomas Hoenig would also be a good choice. Of course I'm for abolishing the Fed altogether.  Does nothing but try to keep the rich rich and the poor poor.

Anonymous's picture

Well said. Abolishing the Fed is the best course.

But if that would not happen, then Hoenig would be the best bet according to me too.

In fact it surprises me that his name does not crop up more often.

MarketTruth's picture

The Founding Fathers wrote in the original and still legal documents that guide the United States of America that anyone who devalues the currency is guilty of treason. Such a treasonous act is punishable by death. Since the Federal Reserve is guilty of devaluing the US dollar, the Federal Reserve in whole including their main representatives (Benjamin Shalom Bernanke), board and members may soon be facing a lawsuit for treason. Now that you are aware of this fact, it is time for all Americans to inform their representatives of this fact. Any representative who votes for Benjamin Shalom Bernanke yet knows of this fact is also guilty of aiding treasonous acts against the United States of America. There is a wind of change happening in America, and this wind can not be stopped.

George the baby crusher's picture

I would agree with the Taylor nomination as he seems less dishonest then others.  But I can't for my life believe that the puppet masters of this private entity which is the FED, would let a nonconformist run their show.  As much as I would like to believe that a single man can make a difference, I'm a realist, which cushions me from disappointment.  And Tyler I'm glad we're not totally down on Princeton, they helped form Mr Taylor in some respect I presume.


Dirtt's picture

Doesn't that suck.  At such a critical juncture the fate of the USA is at stake.


POTUS could finally deliver the first chapter of "Hope & Change" right here right now. Yeah.  When Pigs Fly....

strike for return to reality's picture

There are so many able alternatives to Bernanke. 

One requirement should be that the person has actually run a real business.  (Running a govt.-connected hedge fund that makes money by front running its clients, including the govt, is not a real business.  That is running a criminal enterprise such as the vampire squid is not a qualification anymore than being Wilie Sutton is a qualification.)

Another equally important requirement is that the new person not be connected with failures of the past.  Greenspan, Bernanke and the others connected with past Treserve policy have made a lot of mistakes.  It is human nature to try to hide your errors instead of working to do what is right.  (And since many of those "mistakes" may very well be criminal, there is even more reason to try to cover up.  Stephen Friedman, your name comes to mind.)

It is early enough in Obama's administration that he can make a clean sweep.  He can do what is right for the USA (and the constitution) or he can continue to be another lackey of the vampire squid.  It is early enough into his presidency that his current mistakes can be forgiven as those of an inexperienced new President.  However, if those mistakes continue then history will list him as just another of those who sold their soul to the vampire squid and its master.

greased up deaf guy's picture

ot... sort of... fight club currently airing on bravo ;).

Chopshop's picture

i nominate Tigger Woods:

cause a FED chairman ought be rather squeamish and visibly awkward when fj*ck*ng everyone under the sun with a dumbass grin from ear to ear.

damage's picture

This guy sounds like a good choice, much better than Volcker.

Anonymous's picture

END THE FED!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

(No NEW chairman NEEDED)

Anonymous's picture

It doesn't matter who the fed chairman is or what the fed does. The financial system is hosed. Short everything.

Anonymous's picture

Might be a long shot, but why not Paul Volcker. We need a strict disciplinarian heading the Fed, once and for all burying the Greenspan/Bernanke put. John Taylor is a great candidate, but putting Volcker will result in stable long term interest rates and a strong dollar. There will be fewer instances of financial euphoria/bubbles, which will result in more efficient allocation of capital.

Silver Bullet's picture

I agree. Putting Volcker back in would be seen by the entire world as the US being bullish on the $$$.

The dollar would spike almost immdiately.

strike for return to reality's picture

It is too early to play the Volcker card, and he is smart enough to wait until things have gone thoroughly haywire. 

To put Volcker in now would merely be to position him as the scapegoat for the collapse of the US economy.

Cindy_Dies_In_The_End's picture

Volcker has already said, politely, in so many words that he is "too old for this shit". He seems willing to advise, which perhaps is enough.

rubearish10's picture

You guys really don't think Helicopter Ben gets booted, do ya? That would mean our ballsless politicians really want to make a death defying statement "for the people". What your seeing right now is "more noise" from Congress and Mr Bamma despite the "real message" from Mass. voters last week. Unfortunately, we're in another shallow market correction and we'll continue to grind ever so higher until the System cracks again. In either scenario (real change or not) , we'll have another major market event and see lower lows....Poof!

Heroic Couplet's picture

The hold on Bernanke's confirmation would have been the perfect 2-3 week time to audit the Fed then end it, and thus remove any need for a confirmation. If the private bank cartel AKA the Fed Reserve wants to reign, kick them off the North American continent and let them reign someplace else.

Anonymous's picture

Bennie is an idiot. He shouldn't have been renominated. The decision to renominate Ben reflects badly on Obama, Mr. Progressive, now Mr. Populist. It just shows that Obama is an idiot too. The non-confirmation of Ben would a very big no confidence vote on Obama. Just one of a continuing series of no confidence events; the Mass election being the most recent. Obama can orate, but he can't lead. 2012 can't come fast enough.

AN0NYM0US's picture

 July 24 (Bloomberg) -- John Taylor has a message for economists who say Ben S. Bernanke is ignoring a benchmark guide for interest rates: They’re wrong.

Taylor said his measure shows just the opposite: that Fed policy is appropriate, that central bankers are right to be considering how to withdraw their unprecedented monetary stimulus and that critics who say otherwise are misinterpreting his rule. The formula is designed to show the best rate for spurring growth without stoking inflation.


Taylor himself said there’s evidence the Fed is correctly applying his formula. He said that economists who call for negative interest rates are using projections to apply the rule in ways he never intended.


Taylor’s Codicil

“The Taylor rule says what the interest rate should be now, given current numbers,” not forecasts, he said.

Sancho Ponzi's picture

You, sir/madam, are a gutless, spineless tool.

What_Me_Worry's picture

My 1-year old is a better choice than Bernanke.  At least she occasionally understands when she did something wrong.

Problem Is's picture

They both crap in their pants and stink up our house's daily... no disrespect to your 1 year old intended W_M_W...

Anonymous's picture

Uh huh the kiss of death Sunday headline "Obama
'confident' of repeat Fed term for Bernanke."-

Anonymous's picture

Might I also suggest Arthur Liebehenschel: proven - along with a background in economics and public administration.

AN0NYM0US's picture

John Taylor Praises Greenspan

from a speech Taylor gave at Jackson Hole in 2005


"No matter what metric you use the Greenspan era gets exceedingly high marks for economic performance. The era will always be remembered for its price stability—with declining and now low, stable inflation—and for its economic stability—with only two historically short, mild recessions and three long expansions. An indication of how different things are in the Greenspan era is that the current expansion is already one of the longest in American history."

He goes on basically praising Greenspan and his policies


Alan Greenspan has had an important role in the G7 meetings of central bank governors and finance ministers, always a voice of reason, always stressing goodeconomic policy principles. He has been involved in exchange rate issues, including diplomatic efforts on the Chinese currency peg, and problems relating to current account adjustment. He has worked on IMF reform, including finding innovative ways to clarify the limits on exceptional access with an overall budget constraint. I believe that these efforts have not been emphasized enough by historians of the period; the efforts have contributed greatly to the improved economic performance of the world economy, and thereby the United States economy, in recent years. That there was no contagion from the Argentine default made it unnecessary even to consider whether a cut in interest rates in the United States was needed, as in the case of contagion following the Russian default. Clearly it is better that there was no contagion in the first place than to have had to deal with the damage, especially in the weeks after 9/11.

Concluding Remarks: Principles and Leadership

In conclusion, I believe that the lessons learned from the successful economic performance of the Greenspan era...

Orly's picture

So now we're going to Trent Lott the guy for saying kind words about a relic of the boom times?

Somehow, it doesn't seem fair to use his kind words for someone else against him when what he was saying had nothing with his own theories and ideas.

Anonymous's picture

I vote for Ron Paul to replace Bernanke. He would dismantle it faster.

After all, it doesn't matter who's in charge. Central banking is fundamentally flawed.

CB's picture

it's very doubtful RP would accept the position.

Anonymous's picture

RP would do it in a hearbeat. Bring down the house from the inside. If there's one man I would trust to do it - it would be Ron Paul.

grunk's picture

Can you imagine the document dump Ron Paul would do before they bagged him? 

Careless Whisper's picture

(we won't hold his Princeton tenure against him)

I would.

10044's picture

And I propose to get rid of the fcking monster by passing HR1207.
Btw, does Mr Taylor belong to the CFR, TriLat or the Bilderberg?? If not, he's got no chance...

Seal's picture

This is the response I got complaining about Greenscum’s then persistently low-interest rate policies. Congress – AND THE AMERICAN POPULACE – wanting the seeming something for nothing provided by a Federal Reserve that has monetized two centuries of American goodwill, are equally to blame for the downfall of the American empire.


The United States Senate

7 April 2004

Dear Mr. B…………………

As chairman of the US Senate Banking, Housing and Urban Affairs Committee I will continue to monitor interest rates and their effect on the economy. I am, however, confident in chairman Greenspan’s strong leadership and his aggressive efforts to grow and bolster the economy………

Richard Shelby


On to the future: Tighten your seatbelts people!

“The wavelike movement affecting the economic system, the recurrence of periods of boom which are followed by periods of depression [recession], is the unavoidable outcome of the attempts, repeated again and again, to lower the gross market interest by means of credit expansion. There is no means of avoiding the final collapse of the boom expansion brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of voluntary abandonment of further expansion, or later as a final and total catastrophe of the currency system involved.” Ludwig von Mises




Unscarred's picture

Initially, I love this nomination.  Taylor wrote the first economic text I ever read in high school, and around that same time I learned that his name was on the short list to follow Greenspan.

After reading a number of his recent op-eds, however, I wonder how rigid he would be with respect to conducting policy explicitly by his own 'Taylor Rule'.  His arguments have been consistently inflexible concerning the application of his rule, and while his arguments have been quite compelling, I openly wonder if there is a situation that could arise where the Taylor Rule could serve more harm than good.

It's a bit difficult on the ego to have a well-known monetary policy named after you, only to deviate from it while serving as the chairman of the most important policy committee in the world.  And while I like the direction that ZH is looking, he may be a bit too far right-leaning to get his nomination through this Senate.

AN0NYM0US's picture

the nice thing about a "rule" is that it works until it doesn't, at least that seems to be the way Taylor defends his namesake, as Taylor writes:

One of the advantages of rules is that they reduce arbitrary discretion and add predictability to monetary policy decisions. Predictability is a major factor in favor of rules, but if one changes the rules too much or too frequently, it creates instability.

So I say stick with the rule that worked.




Unscarred's picture

Sounds like "Fedspeak" for "Damn the torpetoes, full speed ahead!"  He's ready.

Thanks for the link.

Anonymous's picture

Perhaps another consideation is that the task at hand is not just the FED changes.....but tax structure changes....

After one reviews the tax structure of the BRIC countries will quickly realize that in order for the US to reinvent itself...the complete tax structure HAS to change....

Otherwise most other efforts will be a total waste of time....

Real Estate should not have as a major portion of its price due to tax deductions of various types.....

There should be no individual or corporate be completely replaced by a sole 15% consumption tax to be divided between the FED and the STATES....via STATE mandates....

If you do not believe this is the case ....then I would advise/challenge any politician or economist to prove otherwise....

One can construe a simple briefing by examining the BRIC rates and then in consideration of the current economic needs and conditions in the US ....this venue would be the most efficient and effective form of sustainable type recovery means....

The most important effect would be the huge increases in securities valuations which are one of the best means to lever and distribute wealth....Even Greenspan has mentioned this....

theadr's picture

Just eliminate the interest rate deduction for corporations and home loans for individuals; that'll surely fix our banking problem once and for all.  Of course don't let it transpire until let's say FYB 10/01/16.

Segestan's picture

Best man for the Job: Edward N. Luttwak. Director of Geo-economics at the Center for Strategic and International Studies of Washington D.C. and an International Associate at the Institute of Fiscal and Monetary Poicy of Japans Ministry of Finance as served on National Security Council , the White House Chief of Staff , the State Department , and the Department of Defense. Is an acclaimed Historian.


 Just saying.

Anonymous's picture

The current administration seems to pull Volcker out of the closet and dust him off whenever they want to look fiscally responsible. Exhibit 1: the presidential election. Exhibit 2: last week when it looked like their support for Bernanke was unpopular.

CB's picture

doesn't matter who's in charge because central banking lends itself to corruption no matter who's at the helm. It's the job of the people running it to favor the banks no matter what the stated purpose of a central bank is.

George the baby crusher's picture

The fox guarding the chickens.

Anonymous's picture

My nominee? Simon Johnson of MIT and formerly Chief Economist at the International Monetary Fund. Experienced in dealing with financial crises, banana republics and failed states.

We're starting Primary Wave 3 down, folks; that's DOW 1,000. Do you really care who's Fed Chairman?

the.spear's picture

I'm sorry, this is just stupid. We all know what the fed says it is and what the fed really is. If people like us can analyze its actions and recognize the fallacy and idiocy of its actions throughout its history - even if we only took a sample ten year period at literally any one point - then what good comes from proposing a candidate? I should really say, what could this person actually do that wouldn't be contrary to the long-term interests of 99.9% of every human being on this planet as opposed the 0.1% (of human pop) of the Fed's owners and beneficiaries?

On this website we have repeatedly exposed the Fed's illegitimacy and the immeasurable damage it has done to the US economy, the world economy, and the people's of these.

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