The Federal Reserve believes low interest rates will solve America’s inequality problem
President Trump recently nominated Judy Shelton to the Federal Reserve Board of Governors. She is the U.S. director for the European Bank for Reconstruction and Development. Shelton is a Republican and believes in the adoption of a gold standard. She currently believes in lowering interest rates, after spending the Obama years criticizing the Fed for lowering interest rates We seem to have a case of someone being ideologically inconsistent in order to secure professional advancement. The slang for this is “selling out.” Or maybe she had an ideological transformation — maybe she really does believe in zero interest rate policy (ZIRP) and negative interest rate policy (NIRP) and a gold standard all at the same time. But that would be impossible. The confirmation hearings are going to be interesting. Go back to the days of Thomas Hoenig. He was another champion of gold, but also a big-time interest rate hawk on the policy-setting Federal Open Market Committee (FOMC), back in 2010. Now that is someone who believes in hard money. Real interest rates are zero, and Trump thinks they are too high. Trump thinks Fed funds should be zero or negative, and he won’t stop criticizing the Fed until he gets what he wants. He might have to replace the Fed chairman in the process. Judy Shelton and Christopher Waller (decidedly a soft money advocate) are both chairperson material. Trump is an unstoppable force that is going to change the face of macroeconomics for decades. It is accepted wisdom that Federal Reserve policies have actually exacerbated inequality by ballooning the prices of financial assets. Yet the Fed actually believes the opposite — that low interest rates solve the inequality problem. At least, Kashkari does. we are in for decades of ultra-loose monetary policy. The Fed does has the potential to start revolutions, and this particular Fed just may do that. Nick Note: i have been preparing you for this day for years. Negative interest rates are a reality. it will start slow and end up being double digits negative. Sorry if you were sleeping in math class when they taught you about negative numbers… Central banks the world over are moving to negative interest rates. it is the dumbest freeging thing ever hatched by the evil Central Banks of the world. They are making the masses debt slaves. This will bring on the global banking collapse, a world wide depression and global electronic money and the destruction of your freedom and throw you into abject poverty if you don’t listen to me. Other then that it will be OK. Remember me i told you to buy zero Coupon bonds in October when their were yielding 3.5% and your jerk off broker know nothing con man salesman for dog shit funds was laughing at you. One of the things about being a Genus is people don’t see what you see. And they call you stupid because they are blind and walk into the furniture. .