Agreed, especially "End the Fed". The Fed can only affect short rates and the markets do a better job of setting ALL rates, so what really is the point of the Fed? Also why does the Fed need TWO trading floors, one in NY and one in Chicago if not for manipulating many markets which be far better left alone to send correct economic signals.
As a matter of interest, how does one "pawn" $7 Trillion of USTs without pushing prices down so increasing rates? I suspect the answer is "very slowly". But when the economy goes into recession and the Fed responds in the usual way with lower short rates and QE/YCC at the longer end, that would seem to be something of a dilemna?
"The few legitimate things the Fed does like payment and banking oversight are already done by Treasury or OCC."
Let's call out the Fed's utter failure at banking oversight. Let's discuss a long term regional Fed bank president.
Distilled to the briefest summary, via Grok, here's what happened. All truthful - I remember this well, and yet none had courage to go on TV to affirm:
"[Silicon Valley Bank] SVB collapsed in March 2023 from a textbook failure any junior analyst would spot: funding volatile uninsured tech deposits with long-duration bonds that cratered when rates rose. [Rates rose because the Fed under Fed head Jerome Powell began raising rates in 2022.]
"Management [at the San Francisco Fed] ignored massive duration mismatch and liquidity risks. By then, Mary Daly had led the Federal Reserve Bank of San Francisco—SVB’s primary supervisor—for five years. Examiners flagged issues but never forced fixes, distracted by DEI, climate priorities, and a soft culture. Daly refused personal accountability, blaming a vague “system,” and remains in her job to this day. A complete abdication of banking oversight."
Both Daly, and Lisa Cook [who allegedly committed mortgage fraud by claiming multiple properties as her “primary residence”] should quietly resign in disgrace, but they lack shame, and the Fed protects its own, and the Fed supported unAmerican DEI policies for many years.
Agreed, especially "End the Fed". The Fed can only affect short rates and the markets do a better job of setting ALL rates, so what really is the point of the Fed? Also why does the Fed need TWO trading floors, one in NY and one in Chicago if not for manipulating many markets which be far better left alone to send correct economic signals.
As a matter of interest, how does one "pawn" $7 Trillion of USTs without pushing prices down so increasing rates? I suspect the answer is "very slowly". But when the economy goes into recession and the Fed responds in the usual way with lower short rates and QE/YCC at the longer end, that would seem to be something of a dilemna?
Great Article.
But before ending the Fed, the Fed should clean up its huge mess.
Start with creating the money to pay all interest owed, or was already paid, on student loans.
Also refund the excess student tuition cost the Fed's inflation caused.
Then prohibit the Fed from ever profiting from student loans in any way.
Next, prohibit the Fed from ever buying any mortgage backed securities or their equivalent.
House prices and property taxes would fall back to reality and true affordability for main street.
The Fed won't suffer actual loss since it did nothing to create this money.
The taxpayers should not have to pay for the Fed's experiments that always boost profits of 1%.
Giving the money back to the people who will actually use it would truly stimulate the economy.
"The few legitimate things the Fed does like payment and banking oversight are already done by Treasury or OCC."
Let's call out the Fed's utter failure at banking oversight. Let's discuss a long term regional Fed bank president.
Distilled to the briefest summary, via Grok, here's what happened. All truthful - I remember this well, and yet none had courage to go on TV to affirm:
"[Silicon Valley Bank] SVB collapsed in March 2023 from a textbook failure any junior analyst would spot: funding volatile uninsured tech deposits with long-duration bonds that cratered when rates rose. [Rates rose because the Fed under Fed head Jerome Powell began raising rates in 2022.]
"Management [at the San Francisco Fed] ignored massive duration mismatch and liquidity risks. By then, Mary Daly had led the Federal Reserve Bank of San Francisco—SVB’s primary supervisor—for five years. Examiners flagged issues but never forced fixes, distracted by DEI, climate priorities, and a soft culture. Daly refused personal accountability, blaming a vague “system,” and remains in her job to this day. A complete abdication of banking oversight."
Both Daly, and Lisa Cook [who allegedly committed mortgage fraud by claiming multiple properties as her “primary residence”] should quietly resign in disgrace, but they lack shame, and the Fed protects its own, and the Fed supported unAmerican DEI policies for many years.
Here's a deeper dive on the father in law. You'll never guess who he's connected to.
https://www.instagram.com/reel/DYTYhCHu2HO/?igsh=MzJhc2xtaWI4MnM5
Look into Mr. Warsh's wife + father in law.
Jane Lauder, net worth ~ $2 Billion.