Cross-posted from https://lemmings.world/post/16505345
President-elect Donald Trump’s return to the White House already carried the potential for sweeping changes to the Federal Reserve. But now a growing question is not how the central bank will operate under Trump but if it’ll continue to operate at all.
Elon Musk, a key Trump backer who is expected to have considerable sway in helping shape Trump’s policies, included a “100” emoji while resharing Republican Sen. Mike Lee of Utah’s post on X calling for abolishing the Fed.
“The Executive Branch should be under the direction of the president,” Lee said Thursday in a post on X, hours after Fed Chair Jerome Powell told reporters he wouldn’t resign if Trump asked him to. “The Federal Reserve is one of many examples of how we’ve deviated from the Constitution in that regard,” Lee added. “Yet another reason why we should #EndTheFed.”
You don’t want a government in direct control of the money supply. There is a very high negative correlation between central bank independence and inflation. Countries without independent central banks have much higher inflation. In conclusion, Lee is a fucking idiot.
At the end of the day the central bank is always dependent on the government. Sometimes at an arms length, other times at a finger length. The government controls the length and gives the authority to issue currency and provides the enforcement needed to ensure it’s one of the few issuers. So it might be more about government competency and its checks and balances.
If they put money supply firmly under the government’s direction, that would eliminate the “technically” argument against MMT that the Fed is independent. Which of course it practically isn’t and these fuckers are going to prove it. If we ever get a worker-friendly government again, they’ll be able to reuse this to pursue a job guarantee program.
They are planning to dismantle the entire country and sell it for scrap
This is a friendly reminder that billionaires are marbled like Wagyu.
Elon also is heading the Department of Government Efficiency (DOGE)… I bet they will substitute crypto for cash and pump/dump the nation. Honest opinion? Buy doge coin and bitcoin because inflation will skyrocket if Trump gets to print dollars and slap 100% tarrifs on food and Chinese imports (aka all products you buy). People will park their money in transient currencies and hard assets like houses and watch trump lower interest rates to refinance his real estate and his buddies too. Refinance your home, borrow cash and buy crypto, ride that wave before it burns down.
