Taylor 'Rules' Fed Independence In Question

Tyler Durden's picture




 

John Taylor, of the Taylor-Rule, who has not been sheepish with his views towards the Fed openly questioned the Fed's independence during a speech to the Joint Economic Committee today. During his testimony at the hearing on the 'Sound Dollar Act of 2012', Taylor noted: "The discretionary interventions of the Federal Reserve have been ratcheted up in such unprecedented ways in recent years that they raise fundamental questions about the future of monetary policy." Perhaps more pointedly, especially given Bernanke's speech today on the Fed's extreme actions and given the hope for a constant interventionist role for the Fed to keep our economy market afloat "The fact that the Fed can, if it chooses, intervene without limit into any credit market - raises more uncertainty, and of course raises questions about why an independent agency of government should have such power."

 

Former St.Louis Fed head William Poole added “The bottom line is that use of the credit resources of the U.S. government should be decided by Congress and not by an appointed body such as the Federal Reserve,”

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Tue, 03/27/2012 - 14:52 | 2295024 12ToothAssassin
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Bullish

edit: added BITCHEZ

Tue, 03/27/2012 - 16:38 | 2295542 MiddletonRobert3
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my roomate's sister makes $85 hourly on the computer. She has been fired from work for 6 months but last month her paycheck was $16158 just working on the computer for a few hours. Read more here .....  http://lazyCash9.com

Tue, 03/27/2012 - 17:48 | 2295745 spinone
spinone's picture

and who says there's no good jobs left in America?

Wed, 03/28/2012 - 00:17 | 2296447 economics9698
economics9698's picture

They make videos about the Taylor Rule in macro.  To fucking bad Ben doesn't watch them.

Tue, 03/27/2012 - 22:47 | 2296328 Davalicious
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Don't tell me, your room mates sister works for the Federal reserve, sitting ar her computer all day hitting Control-P ?

 

Tue, 03/27/2012 - 22:55 | 2296339 Problem Is
Problem Is's picture

Tyler:


  1. Since when are we denied access viewing a commentor's account like this douche bag?
  2. Since when does egregious douche bag spam like this get by your filters?
  3. Marla would have fucked a spammer like this right off ZH like he was in grade school...
Tue, 03/27/2012 - 23:56 | 2296423 Teamtc321
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Spam douche bag, hit the road!!! 

Tue, 03/27/2012 - 14:22 | 2295025 Gubbmint Cheese
Gubbmint Cheese's picture

No taxation without representation.. blah blah blah..

 

Tue, 03/27/2012 - 15:37 | 2295279 Sudden Debt
Sudden Debt's picture

Don't worry, after Obama's election he can be more flexible

Tue, 03/27/2012 - 15:57 | 2295375 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

raises questions about why an independent agency of government should have such power.

Here is a correct edited version "raises questions about why any agency of government should have such power."

Tue, 03/27/2012 - 16:14 | 2295443 Dugald
Dugald's picture

Fine speeches butter no parsnips...

Wed, 03/28/2012 - 01:50 | 2296548 StychoKiller
StychoKiller's picture

Taxation WITH representation ain't so great either!

Tue, 03/27/2012 - 14:59 | 2295141 Freddie
Freddie's picture

John Taylor is an actual American Patriot

+1000

Loved his bass playing in Duran Duran as well.

 

Tue, 03/27/2012 - 17:45 | 2295734 Loose-Tools
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Wasn't it Koran Koran, the Muslim rock band?

Tue, 03/27/2012 - 17:32 | 2295704 Dermasolarapate...
Dermasolarapaterraphatrima's picture

Money, Banking and the Federal resrve is a classic that should be shown in 5th grade and on up...very educational.

Tue, 03/27/2012 - 23:18 | 2296364 TruthInSunshine
TruthInSunshine's picture

This is important, so if anyone has any feedback, hit me with it.

 

I posted a video a while back that had a certain seemingly intelligent person, wise in the ways of fractional reserve banking, actually making an intelligent case that The Federal Reserve really is just a front for Congress, in order to protect the financial entities that own not just the U.S. Government, but most developed nations that have a fractional reserve central bank. If anyone sees that video, where the speaker compliments The Creature From Jekyll Island, and while not denying the history and chronology laid out therein, essentially states that Congress could simply revoke the Fed's charter at any moment if they wished to do so, but there's good reason for most of them not to want to do so, please link it.

In other words:

Inflation too high?  Don't blame Congress. They'll have Kangaroo Court hearings in the Senate or House of Representatives and get all angry with the Chairman of the Federal Reserve (allowing them cover and a distraction to blame while they benefit from the inflationary policies and are able to win re-election).

Yields for savers too low, which is especially galling for senior citizens who depend on returns from fixed income?  Don't blame Congress. They'll have Kangaroo Court hearings in the Senate or House of Representatives and get all angry with the Chairman of the Federal Reserve (allowing them cover and a distraction to blame while they benefit from the inflationary policies and are able to win re-election).

Economy sucks, or is in a meltdown, with living standards plunging, along with consumption? Don't blame Congress. They'll have Kangaroo Court hearings in the Senate or House of Representatives and get all angry with the Chairman of the Federal Reserve (allowing them cover and a distraction to blame while they benefit from the inflationary policies and are able to win re-election).

Structural unemployment is really high, leading to falling wages and - again - plunging living standards, along with massive, debilitating debt burdens for small businesses and individuals? Don't blame Congress. They'll have Kangaroo Court hearings in the Senate or House of Representatives and get all angry with the Chairman of the Federal Reserve (allowing them cover and a distraction to blame while they benefit from the inflationary policies and are able to win re-election).

 

IOW, the Fed is a convenient creation of Congress, as Congress has been deeply captured since well before 1910 (the year of that infamous meeting on Jekyll Island that the POTUS was allegedly denied access to, which gave rise to the Federal Reserve Act of 1913, and America's 3rd fractional reserve central bank since its birth).  Congress gets all the benefits of being insiders, knowing what the Fed will do and when, but they get a fall guy to blame when the their constituents are angry and looking to break something, and it increases their odds of being able to put on some kabuki theater, rage at the Fed, and keep their seats.

Wed, 03/28/2012 - 01:56 | 2296552 StychoKiller
StychoKiller's picture

How is it that people are too dumb to fend for themselves, yet so intelligent that they can vote for the right person to fend for everyone else?

Wishing the government to be a great protector and benefactor does not make it so.  It is not difficult to find evidence that it is anything but.

 

When dipsh!tz like Maxine Waters, Barney Frank, John McCain, and Harry Reid can get relected time after time, I can only figure that the inmates truly are running the asylum!

Tue, 03/27/2012 - 14:24 | 2295030 JustanEmotion
JustanEmotion's picture

Not that congress would actually change to much...

Tue, 03/27/2012 - 14:23 | 2295032 kralizec
kralizec's picture

The bottom line is that use of the credit resources of the U.S. government should be decided by Congress and not by an appointed body such as the Federal Reserve

No shit?!

(rolling eyes)

Tue, 03/27/2012 - 14:58 | 2295136 Manthong
Manthong's picture

 "independent agency of government"

Ok, I'll bite.. which agency of government is not dependent on maintaining the dysfunctional status quo? 

Tue, 03/27/2012 - 15:32 | 2295244 Cognitive Dissonance
Cognitive Dissonance's picture

"and of course raises questions about why an independent agency of government should have such power."

Will someone please pull up an organizational chart of the US Government and show me which branch of government the independent "agency" of the Federal Reserve reports to?

Oh....I understand the public charade of the Fed Chairman reporting on a semi-annual basis to Congress and even that Congress could actually pull its charter. But really..........let's cut through all the bullshit and ask a simply question.

Who runs Bartertown?

Master Blaster

Tue, 03/27/2012 - 15:48 | 2295332 TruthInSunshine
Tue, 03/27/2012 - 16:18 | 2295458 Dugald
Dugald's picture

Wrong question, what runs Barter Town...answer..Pig Shit!

Tue, 03/27/2012 - 17:18 | 2295671 Shazam342
Shazam342's picture

People have been trying to say this about the Fed for years but couldn't get anywhere with the public-til now.

Tue, 03/27/2012 - 14:23 | 2295033 Divided States ...
Divided States of America's picture

Yeah well we knew that already when Bernanke told the Congress that he didnt have to answer this or that question...and under oath too. Guess he's not just the Fed Chairman, he's above the law.

Tue, 03/27/2012 - 14:24 | 2295034 OpenEyes
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independent agency of government  ??

really?  I thought they were a privately owned bank.  

Tue, 03/27/2012 - 14:34 | 2295041 hedgeless_horseman
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flag as a bingo (1)

 

Read the U.S.A.'s Constitution and amendments, then read the Federal Reserve Act and amendments, then you be the judge which of these two contradictory sets of laws we are really living under.

Tue, 03/27/2012 - 14:35 | 2295066 GeneMarchbanks
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There is no government, only a mirage. All CBs have pretty much merged into one.

Tue, 03/27/2012 - 15:03 | 2295160 EscapeKey
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The powers of financial capitalism had another far-reaching aim,nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and he economy of the world as a whole. The system was to be controlled in a feudalist fashion by the central banks of the world acting in concert by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basil, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world

Carroll Quigley, "Tragedy and Hope".

Tue, 03/27/2012 - 15:14 | 2295199 GeneMarchbanks
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+1 for Cliton's favorite.

 

Tue, 03/27/2012 - 14:47 | 2295102 Bill D. Cat
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Did a double take as well . Should have been Agency Independent of government .

Tue, 03/27/2012 - 15:07 | 2295174 TruthInSunshine
TruthInSunshine's picture

The Fed is 'independent' when they choose to be, such as when Bloomberg sued them under FOIA for records regarding which banks/fin-institutions received loans and how much, but then they are a 'public' body when they do other things that suit their needs at the time they are doing those things.

 

Tue, 03/27/2012 - 15:09 | 2295183 EscapeKey
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Nicholas Biddle would be proud.

We need Andrew Jackson reincarnated.

Tue, 03/27/2012 - 15:29 | 2295242 Dr. Engali
Dr. Engali's picture

We need Ron Paul to dismember this beast.

Tue, 03/27/2012 - 15:33 | 2295262 Kayman
Kayman's picture

The Federal Reserve; the disease that masquerades as the cure.

Tue, 03/27/2012 - 16:03 | 2295400 akak
akak's picture

Government itself is that disease, more generally.

Tue, 03/27/2012 - 17:20 | 2295677 Shazam342
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Kind of like Indian reservations:  They are independent nations when it comes to treaty rights, but simultaneously can't wait to get on the public dole for other issues.

Tue, 03/27/2012 - 17:48 | 2295743 Things that go bump
Things that go bump's picture

I figure we owe them whatever they want.

Tue, 03/27/2012 - 19:31 | 2295983 Cathartes Aura
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casinos for gambling addicts, poetic justice.

*nods*

Tue, 03/27/2012 - 15:09 | 2295184 Straw Dog
Straw Dog's picture

"independent agency of government  ??"

"really?  I thought they were a privately owned bank.  "

Hits the nail on the head.

Here's a quote from John Hussman speaking about central banks and there effect on his funds performance, 30jan12.

"I could admittedly do better, and would certainly have captured more upside from temporary speculation, had I committed myself to the principle that central banks will act strictly to defend the bondholders of the banks they represent, even if it means trespassing into fiscal policy, subordinating public interest, empowering the worst stewards of capital, violating legal restrictions, and inviting long-term instability."

Tue, 03/27/2012 - 15:16 | 2295196 TomGa
TomGa's picture

More like a "private banking cartel" legislated into legal existence through intrigue and subversion.

 

The Creature from Jekyll Island

 

The American Dream (Movie)

Wed, 03/28/2012 - 05:15 | 2296648 zhandax
zhandax's picture

Excellent!  I have seen this (and maybe saved a link in email somewhere) but I actually listened to it tonight.  In an election year, everyone in the US needs to hear this until they understand it.  Problem is, it will take several hearings to get their attention, and a few more for comprehension.  Can't think of any venue where that is likely.  Any ideas?

Tue, 03/27/2012 - 14:24 | 2295036 rosethorn
rosethorn's picture
Milton Friedman opposed the Federal Reserve:

Capitalism and Freedom page 50:

"evidence persuades me that at least a third of the price rise during and just after World War I is attributable to the establishment of the Federal Reserve System… and that the severity of each of the major contractions — 1920-1, 1929-33 and 1937-8 is directly attributable to acts of commission and omission by the Reserve authorities…

Any system which gives so much power and so much discretion to a few men, [so] that mistakes — excusable or not — can have such far reaching effects, is a bad system. It is a bad system to believers in freedom just because it gives a few men such power without any effective check by the body politic — this is the key political argument against an independent central bank…

To paraphrase Clemenceau, money is much too serious a matter to be left to the central bankers."

Tue, 03/27/2012 - 14:41 | 2295090 JPM Hater001
JPM Hater001's picture

You actually typed all that didnt you...You'll say you cut and paste but we'll know the truth...

Tue, 03/27/2012 - 14:52 | 2295115 malikai
malikai's picture

Friedman was right about a lot of things.. And then came monetarism.

Tue, 03/27/2012 - 14:25 | 2295037 toadold
toadold's picture

A bitch slap for Helicopter Ben.  "Shocking Ignorance"

http://www.realclearmarkets.com/articles/2012/03/27/ben_bernankes_shocking_gold_standard_ignorance_99586.html

No charts, just what I consider common sense....though I am somewhat of a stranger to that myself. 

Tue, 03/27/2012 - 14:25 | 2295038 pods
pods's picture

Well tickle my ass with a feather. Never knew the FED was a part of our government?

Oh wait, they aren't.

pods

 

Tue, 03/27/2012 - 14:49 | 2295108 lasvegaspersona
lasvegaspersona's picture

pods...yes it is particularly nice weather

Tue, 03/27/2012 - 14:25 | 2295043 Gene Parmesan
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Truth is treason...

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